PwC has called on African business leaders to urgently adopt comprehensive Environmental, Social, and Governance (ESG) strategies, emphasizing that ESG performance directly impacts societal well-being and corporate sustainability.
African organizations face significant gaps in climate action compared to global peers. A PwC CEO survey reveals 60% of African executives cite climate-related physical and transition risks, while 77% of companies lack carbon neutrality commitments—worse than the global 71% average. Net-zero emissions require balancing organizational CO2 output with removals, typically annually.
Only 20% of African CEOs have net-zero targets, below the 73% global rate. Edward Kerich, PwC ESG Lead for East Africa, stated, "African firms must embed ESG principles across operations to build trust, ensure sustainability, and maintain competitiveness."
Climate risks threaten African economies through unemployment, food shortages, health crises, and migration. Oxford University research links improved ESG performance to better living standards, benefiting both developed and emerging markets.
While 55% of African companies include non-financial ESG outcomes in long-term strategies—higher than global averages—only 10% tie executive pay to greenhouse gas metrics, compared to 37% globally. Over 45% of FTSE 100 firms now link executive compensation to ESG goals.
Key barriers to ESG adoption in Africa include limited expertise, lack of top-level advocacy, insufficient regulatory mandates, and perceptions of ESG as a cost rather than an investment. PwC aims to achieve global net-zero emissions by 2030, decarbonize its supply chain, and advance ESG reporting standards.
