NBFIRA Presents at the 13th Annual Institute of Internal Auditors Conference

The Chief Executive Officer of the Non-Bank Financial Institutions Regulatory Authority ("NBFIRA"), Mr. Oduetse A. Motshidisi presented at the 13th Annual Institute of Internal Auditors Conference, on September 11, 2024.

Mr. Motshidisi unpacked the topic of Environmental, Social and Governance (ESG) Strategies and Innovative Techniques', where he highlighted that Countries are, broadly pursuing the ESG concept as a vehicle to meet the United Nations Sustainable Development Goals (SDGs) whose key dimensions are economic growth, environmental protection and social inclusion.

In his presentation, Mr. Motshidisi expanded on the understanding of the ESG concept which encompasses taxonomies that are developed internationally for the purpose of assessing performance of organisations in relation to ESG commitments in any given jurisdiction. The taxonomies are classified to be Environmental, Social and Governance. The Environmental taxonomies generally assess environmental management, risk, mitigation and impacts, whilst the Social taxonomies assess labour related management practices as well as operational impacts to both internal and external set-up. With regards to Governance taxonomies, he emphasised that the assessment covers issues of sustainability vision, decision making, expertise, training, transparency and disclosure.

In acknowledging how the ESG concept fits into Botswana's economy, he called to attention of the reliance the economy has on mineral revenues, and that in view of the demand for diamonds weakening over time, this urges the private precinct such as the financial sector to leverage its innate capacity of creativity and innovation to diversify the economic base and lead in an export oriented economy better placed to unlock the potential of the non-mineral sectors.

He further stated that opportunities for investments exist in the local economy and must be pursued for greater welfare. He went on to say that it is important to be mindful that informed consumers and investors demand products and services that are produced responsibly and sustainably with commitment and adherence to ESG principles and other applicable standards.

In conclusion, Mr Motshidisi emphasised on the urgency of the Institute of Internal Auditors to partner with Government by contributing ideas that will entrench a framework that complements sustainable economic development and acceleration of the process towards developing homegrown or Botswana specific ESG strategies and innovative techniques. He also underlined that the Institute of Internal Auditors is well placed to develop, upskill and equip auditors to enhance domestic firms' ESG risk identification and mitigation strategies to be internationally competitive and attract the much-needed foreign direct investment.

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