Systemic change in ESG in Africa offers holistic approach for sustainable development

In a recent webinar hosted by ESG Africa Conference and Expo and sponsored by tax consultancy EY, leading experts came together to discuss the importance of systemic change in environmental, social and governance (ESG) efforts across Africa. The conversation emphasised the need for a holistic approach, recognising that ESG issues are interconnected and cannot be addressed in isolation.

The panellists - who included systemic change consultants Skultcha CEO & chief transformation impact officer Marie Parramon-Gurney; African change maker Ubuntu Lab Institute executive director Sharon van Schalkwyk; and management consultancy EY-Parthenon strategy and transactions sustainability leader Nicola White - stressed that economic growth, social development and natural capital regeneration must be tackled simultaneously to achieve meaningful progress.

The discussion underscored the need to understand the full ecosystem when creating ESG solutions, especially in Africa, where challenges are complex and multifaceted. Webinar moderator Wendy Poulton emphasised the importance of taking a systemic view in ESG strategies, particularly given the fast-changing and unpredictable global landscape.

The panellists, all of whom are thought leaders in the ESG space, shared their insights on the growing necessity for integrated, long-term strategies that take into account the myriad of issues impacting African societies and economies.

Parramon-Gurney focused on the vital role systemic change plays in Africa's sustainable development, linking it to economic growth, social progress and the restoration of natural capital. She illustrated how agriculture is a prime example of an interconnected system. “Food systems, economic development, infrastructure and public health are all intertwined, demonstrating that a systemic approach is critical for lasting impact,” she said.

White added that the early stages of Africa’s ESG journey present both challenges and opportunities. She emphasised the need to adopt Sustainable Finance Disclosure Regulation principles to ensure that ESG initiatives create real value across organisations.

Meanwhile, Van Schalkwyk provided practical examples from Zambia and Uganda, highlighting how village banks and integrity initiatives are driving systemic change. “These community-level solutions, with support from diverse stakeholders, are helping to create sustainable local economies and governance structures,” she stated.

White expanded on this by highlighting how ESG principles need to be integrated into governance, IT and financial systems, alongside employee education. “Employees must understand the value of ESG data and that a strong management system is key to empowering people at all levels,” she emphasised.

The panellists also shared various challenges they have encountered in attempting to implement systemic change. “Devolving power and altering longstanding governance structures is often difficult, requiring executive buy-in and long-term commitment,” White noted, while Poulton stressed the importance of early and continuous stakeholder consultation to foster co-creation of solutions.

“A deep understanding of the root causes of problems is essential, as well as a willingness to experiment and learn throughout the process of systemic change,” Parramon-Gurney highlighted.

She also underscored the importance of transparent stakeholder engagement, especially through co-creation processes with diverse groups, with Van Schalkwyk urging organisations to question who they are not speaking to and what they might be missing in their engagement processes.

White pointed out the role of innovation, noting that technology and open dialogue with stakeholders can lead to new products and strategies. “Tools like systems diagrams and scenario planning can help avoid overly simplistic solutions to complex problems,” Poulton added.

Measuring the success of systemic change was another key theme, with White maintaining that long-term commitment is crucial and that success should be measured through both quantitative data and qualitative stories that capture the broader impact of change. “Proper stakeholder engagement is necessary to identify what metrics are most relevant to different groups,” she emphasised.

The discussion extended to specific challenges like youth unemployment and the circular economy, with Parramon-Gurney pointing out that planning for the future must involve young people, particularly when addressing employment. White called for government policies that encourage recycling and engage youth in the circular economy.

“Empowering youth to create their own opportunities requires a shift in both mindsets and belief systems,” noted Van Schalkwyk, while Poulton addressed the challenges of integrating ESG into small and medium-sized enterprises (SMEs), underscoring the need for education and regulatory support.

“Long-term commitment and cultural shifts are needed to drive real progress, and organisations should view stakeholders as value creators, not just compliance obligations,” she emphasised.

The webinar provided a valuable platform for discussing how systemic change can transform ESG efforts in Africa, highlighting the need for a holistic, inclusive and innovative approach that can drive long-term success.