IFRS calls on Tanzanian accountants to adopt ESG to cope with a rapidly changing environment

DAR ES SALAAM: TANZANIAN accountants have been urged to strengthen their skills in Environmental, Social and Governance (ESG) reporting as sustainability and climate-related disclosures gain importance in financial reporting.

This comes ahead of the International Financial Reporting Standards (IFRS S1 and IFRS S2) Cohort 2 training scheduled for April 22–24 in Morogoro, which aims to equip finance professionals with practical knowledge on sustainability and climate-related financial disclosures.

Speaking in Dar es Salaam today, April 8, REET Consult Director of ESG and Sustainability, Ms Angel Mgawe, said the accounting profession is evolving rapidly due to increasing expectations from regulators, investors, and development partners.

“ESG is no longer separate from finance — it directly affects lending decisions, compliance, and long-term business performance. Accountants must now be able to translate these risks into financial reporting,” she said.

Ms Mgawe noted that the training will help participants understand ESG within their organizations, identify key risks, and begin structuring data collection across departments.

She added that IFRS S1 and IFRS S2 provide a global framework for disclosing sustainability and climate-related financial information, helping organizations align with international standards and link sustainability risks to financial performance.

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ECLA Africa Consult Managing Partner, Mr Lauden Cheyo, emphasized the need for professionals to adapt to the changing landscape.

“Accountants must go beyond traditional reporting and understand how sustainability and climate risks impact financial performance. This training is an important step in building that capacity,” he said.

The training is expected to attract participants from sectors including banking, manufacturing, and companies working with international partners.

Experts warn that early adoption of ESG and sustainability reporting standards will be key for organizations seeking to remain competitive and compliant in a rapidly changing environment.