South Africa's Financial Sector Conduct Authority (FSCA) has published an Investment Providers Sustainable Finance Survey Report, setting out how investment providers are integrating sustainable finance and Environmental, Social and Governance (ESG) considerations. The findings indicate broad recognition of ESG principles, but point to ongoing challenges in embedding them effectively in firms’ strategies and practices. The survey covered governance, operations and product design, and risk management and disclosures. Key challenges identified include regulatory uncertainty that limits standardised ESG practices, a lack of consistent ESG ratings that affects investment decision-making, and difficulties in mitigating greenwashing risks and misleading sustainability-related information. This work follows the FSCA’s Sustainable Finance Programme of Work issued in March 2024, which prioritised regulatory and supervisory activity to promote credible and consistent sustainable finance information in South Africa. The FSCA is considering whether further regulatory interventions are needed, including strengthened transparency requirements, refined ESG disclosure guidelines and alignment with emerging global frameworks, and has encouraged stakeholders to review the report and contribute to future discussions.

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