Why Corporate Treasurers Hold the Key to Sustainability Success

Corporate treasury’s use of ESG reporting is evolving from a compliance exercise to a tool for unlocking long-term value. Effective ESG disclosure boosts investor confidence, improves access to sustainable funding, and mitigates reputational risks. As stakeholders expect substantiated information and decision-making, corporate treasury’s role in ensuring accuracy, transparency, and assurance in ESG reporting is essential.

Recent developments – a shift to more integrated reporting

In 2022, the JSE introduced its Sustainability Disclosure Guidance, requiring companies to report on both the financial and social impacts of sustainability issues. This increases the need for robust data, reporting, and information management.

That same year, the South African National Treasury launched the Green Finance Taxonomy (GFT) to classify environmentally sustainable activities. Aligned with global standards, it helps corporate treasurers assess whether green instruments deliver proven environmental benefits.

Global expectations for ESG data are rising, with a growing focus on Scope 3 emissions — indirect emissions across the value chain.

• Scope 1 - direct emissions from owned or controlled sources
• Scope 2 - indirect emissions from purchased energy
• Scope 3 - all other indirect emissions in the value chain

This marks a shift to integrated reporting, with corporate treasury playing a central role in linking sustainability to financial performance.

The pivotal role of corporate treasury in linking the sustainability and funding strategies

A strong sustainability profile is now key to securing affordable capital and building credibility. Investors and lenders increasingly assess ESG metrics, with clear disclosures lowering funding costs and improving access to ESG-focused capital, while weak disclosures raise governance concerns.

Treasury plays a central role by using sustainability-linked instruments such as green, social, and sustainability-linked loans, to fund ESG initiatives. In South Africa, treasurers are embedding ESG KPIs into funding structures, reducing costs and broadening access to capital. RMB applies these principles in transactional banking, extending the focus to short-term tools such as green deposits and supply chain finance. Our green deposit solution aligns cash assets with GFT-aligned activities, improves Scope 3 emissions profiles, and delivers competitive returns.

Data underpins the realisation of sustainability goals

Managing Scope 3 emissions depends on reliable data from suppliers. Globally, access to better data is improving thanks to aligned sustainability standards and new technology, but challenges remain, especially in ensuring internal data quality, standardisation, and system compatibility. Legacy systems may need upgrades, and treasurers must understand ESG concepts and their financial implications.

Effective ESG reporting requires cross-functional collaboration and leadership support, as well as staying up to date with evolving regulations. In Africa, credible data is harder to access due to inconsistent reporting practices, limited digital systems, and scattered, unstructured information.

To address this, we are developing a private market platform to give companies a standardised view of sustainability data, enabling measurement, reporting, and sharing with stakeholders. By reflecting local realities, we aim to close data gaps and boost transparency.

Understanding supplier sustainability profiles will also help treasurers use financial incentives — such as better terms for greener suppliers, to reduce Scope 3 emissions and strengthen overall sustainability performance.

RMB’s innovation in sustainable finance

Corporate treasurers can direct capital to projects with real environmental and social impact, strengthening both ESG outcomes and operational resilience. RMB’s Green Deposits show that sustainable investments can deliver genuine value, while future opportunities in supply chain finance promise to extend sustainability benefits across the market.

RMB’s Green Deposits offering is a compelling avenue for corporate treasurers to place surplus cash in a facility that earns interest and attracts green credentials. Key features of the offering are:

• A Green flexi notice deposit, which is designed for corporates seeking to invest surplus cash in an interest-bearing deposit earmarked for the funding of accelerated sustainable development.
• Existing green loans which meet specified eligibility criteria shall, in aggregate, make up a portfolio of eligible green assets.
• A Green Deposit Framework (“GDF”) has been established outlining the green eligibility criteria and process for allocation of eligible green assets to ensure a consistent, transparent and credible approach is implemented.
• Eligible green categories included in the framework include energy efficiency, green buildings, renewable energy and clean and sustainable transport. These green eligibility criteria have been aligned to the international voluntary governing standards being the Loan Market Association’s (“LMA’s”) Green Loan Principles (“GLPs”) and the International Capital Market Association’s (“ICMA’s”) Green Bond Principles (“GBP”) which will lead to positive contribution to several United Nations Sustainable Development Goals (“UN SDGs”).

The net proceeds from the green deposits, in accordance with the framework, reference the underlying eligible portfolio of green assets.