African businesses are urged to make their voices heard in response to the International Sustainability Standards Board (ISSB) invitation to comment on proposed changes to how agricultural companies report sustainability information, ahead of the 24 July 2026 deadline.
The Exposure Draft amends the Agricultural Products Sustainability Accounting Standards Board (SASB) Standard, the benchmark agri-businesses use to identify what sustainability information matters to investors. Trialogue attended the International Financial Reporting Standards (IFRS) Foundation’s recent roundtable on the draft, and is urging companies in its network to engage while the window is open.
At the heart of the proposal is a recognition that the existing standard does not reflect how many companies in emerging markets actually operate.
“Companies in emerging markets and developing economies told us that SASB Standards need updating to reflect their realities. We’re proposing enhancements to the Agricultural Products SASB Standards to address this feedback. For example, expanding its scope to reflect the business models of many African companies in the industry who also operate their own farms,” said ISSB chairperson Emmanuel Faber.
“During our first consultation on the SASB Standards, one in five responses came from Africa, helping us build their global applicability. My hope this time around is to match or exceed this engagement to help ensure the standards work for you.”
Proposed changes to the standards
The proposal would broaden the standard’s scope to reach direct farming, capturing the hybrid models common across emerging markets, a profile many South African agri-businesses fit. It introduces new disclosure topics covering food loss and waste, land use and ecological impacts, as well as labour conditions in direct farming.
Tighter supply chain expectations would see revised metrics that target deforestation- and conversion-free sourcing, traceability, sensitivity to nature- and climate-related physical risks, and environmental and social due diligence. Core metrics on GHGs, energy, water, food safety and workforce health and safety would be sharpened. At the same time, the genetically modified organism (GMO) management topic would be dropped as investor interest has waned.
Why it matters for South Africa
Under IFRS S1, companies must disclose sustainability information material to investors, using the SASB Standards to identify it by industry. For agri-businesses, the Agricultural Products Standard determines the topics and metrics they report against, shaping what investors and lenders see, and ultimately what bears on financing and the cost of capital.
Reporting against these standards remains voluntary in South Africa for now, but the landscape is moving. The Johannesburg Stock Exchange (JSE) is aligning its guidance with IFRS S1 and S2, King V takes effect for financial years beginning January 2026 with a heightened emphasis on double materiality, and both the Companies and Intellectual Properties Commission (CIPC) and the Department of Trade Industry and Competition (DTIC) are assessing mandatory sustainability reporting.
ISSB member Dr Ndidi Nnoli-Edozien framed the stakes in regional terms.
“Agriculture is central to livelihoods, food security and long-term value creation across Africa, and investors need decision-useful, comparable disclosures to assess how companies are managing sustainability-related risks and opportunities; and to allocate and price capital accordingly,” she said.
“The proposed amendments to the SASB Agricultural Products Standard offer a direct opportunity to shape global disclosures, ensuring they reflect the realities of agribusiness across diverse operating models from hybrid farming structures to data-scarce informal supply chains.
“I encourage you to engage before the 24 July deadline and, in particular, to let us know your thoughts on the need for proportionality mechanisms that refine specific metrics to serve all markets, also those where data infrastructure is least mature. African voices in this consultation are not optional; they are essential to achieving standards that are fit-for-purpose, enabling sound investment decisions and long-term resilience.”
Consultation a chance to shape, not just adopt
The consultation is being cast as an opportunity to influence the standards rather than inherit them. The ISSB has already eased metrics that preparers found too costly in response to earlier feedback, but African participation has lagged compared to other regions.
A central question is where the cost of data collection lands. Some expect larger companies to absorb it and invest in their supply chains, treating traceable data as a commercial edge; others worry it will cascade down to the producers and small-scale farmers least able to bear it. The proposals do not require smallholders to report, and IFRS S1 asks only for information that can be gathered without undue cost or effort, but how the requirements settle across supply chains remains something to watch.
The same Exposure Draft also amends the Meat, Poultry and Dairy and Electric Utilities and Power Generators SASB Standards, both open for comment until 24 July and relevant to South Africa’s livestock, dairy and power sectors.
CIPC commissioner Rory Voller urged companies to act: “Let us seize this opportunity to ensure that South Africa’s corporate reporting regime is not only globally aligned, but also future-fit, responsive and inclusive.”
Comments can be submitted through an online survey or by letter to commentletters@ifrs.org before 24 July 2026.
Read the proposals and have your say
- Exposure Draft (all three standards)
- Basis for Conclusions which provides rationale for the decisions related to the proposed amendments
- Agricultural Products Standard (clean version)
- Agricultural Products Standard (snapshot)
- ISSB project page detailing the ISSB’s approach to enhancing the SASB Standards
Contact: David Krone
