Surreal illustration of a vibrant South African landscape transforming into a barren wasteland, symbolizing the impact of corporate actions on biodiversity.

Is South African Business Greenwashing? The Truth About Corporate Biodiversity Reporting

Kai Mendoza in Climate & Environment December 2025 • 4 min read.

"A deep dive into how South African companies are—or aren't—disclosing their impact on the nation's rich biodiversity."

In a world increasingly aware of environmental fragility, biodiversity loss has emerged as a critical concern. South Africa, a nation celebrated for its extraordinary natural heritage, faces mounting challenges in protecting its diverse ecosystems. As species disappear at an alarming rate—estimated to be 1,000 times faster than historical trends—the role of corporations in either mitigating or exacerbating this crisis comes under intense scrutiny.

The pressure is on for companies to step up and transparently report their impact on biodiversity. But are they truly walking the walk, or is their commitment merely skin-deep? Integrated and sustainability reports should, in theory, offer a window into how businesses manage their environmental responsibilities. However, a closer look reveals a mixed bag of genuine action and what some might call 'greenwashing'.

This article digs into the biodiversity reporting practices of South African companies, particularly those in the high-risk mining and food sectors. By analyzing their disclosures, we aim to uncover whether these corporations are providing substantive accounts of their environmental stewardship or simply paying lip service to sustainability.

The State of Corporate Biodiversity Disclosure: A Reality Check

Surreal illustration of a vibrant South African landscape transforming into a barren wasteland, symbolizing the impact of corporate actions on biodiversity.

A study published in the South African Journal of Economic and Management Sciences scrutinized the integrated and sustainability reports of South African companies listed on the Johannesburg Stock Exchange (JSE). The focus was on the mining, food production, and retail sectors—industries known to have significant impacts on the environment. Researchers analyzed data from 2011 to 2013, using established biodiversity reporting frameworks to gauge the frequency and depth of disclosures.

The findings painted a concerning picture: few companies provided detailed reporting on biodiversity issues. This dearth of information persisted despite South Africa's well-developed corporate governance code, its history of incorporating non-financial information in corporate reports, and its championing of integrated reporting. It begged the question: were these companies genuinely committed to balanced accounts of their environmental management, or were they falling short?

Key indicators analyzed included: Land Use: Location and size of owned or managed land near protected areas and high-biodiversity zones. Impact Assessments: Descriptions of significant impacts on biodiversity in these sensitive areas. Habitat Protection: Efforts to protect or restore habitats. Management Strategies: Actions and future plans for managing biodiversity impacts. Species Impact: Number of threatened species affected by operations.

The analysis revealed that while some companies mentioned biodiversity in their reports, the level of detail was often lacking. Many disclosures were generic, failing to provide concrete information about specific actions taken to mitigate environmental damage or promote conservation.

Beyond Compliance: Moving Towards Genuine Stewardship

The research highlights a critical need for South African companies to move beyond mere compliance and embrace genuine environmental stewardship. This requires a shift from superficial reporting to detailed, transparent disclosures that provide stakeholders with a clear understanding of a company's impact on biodiversity. By integrating biodiversity considerations into core business strategies and engaging in meaningful stakeholder dialogue, corporations can play a pivotal role in safeguarding South Africa's natural heritage for future generations.

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Everything You Need To Know

What key areas are examined when assessing how South African companies report on biodiversity?

Assessments of South African companies' biodiversity reporting focus on key indicators such as their Land Use practices near protected areas, the rigor of their Impact Assessments, their efforts in Habitat Protection and restoration, their Management Strategies for mitigating biodiversity impacts, and the Species Impact, specifically the number of threatened species affected by their operations. These elements offer a structured view of a company’s commitment to environmental stewardship.

Why is it important for South African companies to provide detailed biodiversity disclosures in their reports?

Detailed biodiversity disclosures are crucial because they provide stakeholders with a clear and transparent understanding of a company's actual impact on the environment. Generic reporting lacks substance and doesn't allow for proper evaluation of environmental stewardship. Comprehensive reporting, using indicators like Land Use, Impact Assessments and Habitat Protection, enables informed decision-making and holds companies accountable for their environmental responsibilities.

What does it mean for South African companies to move beyond compliance towards genuine environmental stewardship?

Moving beyond compliance means that South African companies should not only meet the minimum regulatory requirements but also proactively integrate biodiversity considerations into their core business strategies. This includes engaging in meaningful stakeholder dialogue, implementing effective Management Strategies based on detailed Impact Assessments, and taking concrete actions to protect or restore habitats. It requires a commitment to transparent disclosures and genuine efforts to minimize environmental damage and promote conservation, exceeding simple adherence to rules.

What was concerning about the biodiversity reporting practices of South African companies listed on the Johannesburg Stock Exchange (JSE) between 2011 and 2013?

The concerning aspect was that, despite South Africa's advanced corporate governance and history of incorporating non-financial information in reports, very few companies provided detailed reporting on biodiversity issues. The study in the *South African Journal of Economic and Management Sciences* found that many disclosures lacked concrete information about specific actions taken to mitigate environmental damage. This raised questions about whether companies were genuinely committed to environmental management or merely engaging in superficial reporting, without providing enough detail on Land Use and Species Impact for example.

Why were the mining and food sectors specifically targeted in the study of corporate biodiversity reporting in South Africa?

The mining and food production sectors were specifically targeted due to their known significant impacts on the environment. Mining activities often disrupt habitats and affect species, while food production can lead to deforestation, water pollution, and Land Use changes that harm biodiversity. Consequently, disclosures related to Habitat Protection and Species Impact are critical. Examining these sectors allows researchers to assess how companies in high-risk industries are addressing their environmental responsibilities and whether their actions align with the nation's biodiversity goals.