Is sustainability reporting mandatory in Zambia?
Yes, for publicly accountable entities. ZiCA's Circular No. 4/2023 requires them to apply IFRS S1 and S2 for annual reporting periods beginning on or after 1 January 2025, which means the first reports cover 2025 and are published in 2026.
All other organisations may apply IFRS S1 and S2 voluntarily. Zambia also intends to consider future ISSB standards as they are issued.
Who applies IFRS S1 and S2
Publicly accountable entities
1 January 2025
Annual reporting periods beginning on or after this date. First reports cover 2025 and are published in 2026.
Which companies are publicly accountable entities in Zambia?
A publicly accountable entity in Zambia is one whose securities are traded in public markets, or that is in the process of issuing securities for trading in public markets. That includes, for example, companies listed on the Lusaka Securities Exchange and companies preparing to issue shares or debt to the public.
ZiCA's circular expressly excludes entities whose securities trade only in private markets or in relatively small public markets, entities with small shareholder bases, low liquidity or light governance disclosure requirements, and private entities without public accountability, such as small and medium-sized entities. Foreign publicly accountable entities follow the same rules as Zambian ones.
Covered
- Securities traded in public markets
- In the process of issuing securities for public markets
- For example, companies listed on the Lusaka Securities Exchange
- Companies preparing to issue shares or debt to the public
- Foreign publicly accountable entities, on the same rules
Excluded
- Securities traded only in private markets or relatively small public markets
- Small shareholder bases, low liquidity or light governance disclosure requirements
- Private entities without public accountability, such as small and medium-sized entities
Does Zambia change IFRS S1 and S2?
No. Zambia has adopted IFRS S1 and S2 as issued by the ISSB, with no modifications and no changes to the transition reliefs. Companies must make an explicit and unreserved statement that they comply with the IFRS Sustainability Disclosure Standards as issued by the ISSB.
That means the ISSB's own first-year reliefs apply as they stand: a company may report on climate only, keep an existing emissions method, leave out Scope 3 emissions and comparative figures, and publish later than its financial statements in the first year. See IFRS S1 and S2 in Africa for the reliefs in full.
Adopted as issued by the ISSB
First-year reliefs that apply
Where and when must the disclosures be published in Zambia?
As part of the company's general purpose financial reports, covering the same reporting entity as the financial statements and published at the same time, subject to the first-year timing relief in IFRS S1.
Additional disclosures are neither required nor permitted within the report that contains the ISSB-based disclosures. A company that wants to publish wider ESG information, for example under the GRI Standards, should keep it in a separate document. Digital tagging of the disclosures is not required.
Where the disclosures sit
General purpose financial report
Same reporting entity, published at the same time
Wider ESG report, for example GRI
Kept in a separate document
Does Zambia require integrated reporting?
No. ZiCA adopted the Integrated Reporting framework at the same time as IFRS S1 and S2, but every organisation may use it voluntarily.
For companies that already publish an integrated report, the framework can sit alongside the mandatory IFRS S1 and S2 disclosures, which remain the requirement for publicly accountable entities.
Adopted together by ZiCA
When does assurance of sustainability disclosures start in Zambia?
It has not yet been decided. The IFRS Foundation's profile of Zambia, updated in July 2026, records the required level of assurance as to be determined.
Even so, a company reporting today should keep the evidence behind every figure. When assurance is introduced, the first years' records will be the ones an assurer looks at, and rebuilding them later is slower and more expensive.
Required level of assurance
To be determined
IFRS Foundation profile of Zambia, updated July 2026
Who oversees sustainability reporting in Zambia?
Four organisations are involved: ZiCA, which sets the standards; the Lusaka Securities Exchange, whose listing rules govern listed companies' reporting; the Securities and Exchange Commission of Zambia, which regulates the capital markets; and the Ministry of Green Economy and Environment, which leads national policy on the green economy.
ZiCA
Sets the standards
Lusaka Securities Exchange
Listing rules govern listed companies' reporting
Securities and Exchange Commission of Zambia
Regulates the capital markets
Ministry of Green Economy and Environment
Leads national policy on the green economy
For questions about the pronouncement itself, ZiCA can be reached at regulation@zica.co.zm.