ESG (Environmental, Social, and Governance) reporting in Kenya is still in its early stages, but there have been some recent developments in the area. The largest development has been the creation of the Kenya Sustainability Reporting Standards (KSRS) by the Capital Markets Authority (CMA) in 2020. The KSRS provides guidance on the disclosure of ESG information by companies listed on the Nairobi Securities Exchange (NSE). The standards are voluntary and provide a framework for companies to report their ESG performance, including indicators such as energy consumption, water use, waste management, and social and ethical practices. The CMA also launched the ESG Dashboard in 2020, which provides insight into the performance of companies listed on the NSE. The Dashboard includes data on companies’ performance in areas such as climate change, environment, social, and governance. It also provides a platform for investors to compare companies’ performance on ESG metrics. The Kenya Association of Stockbrokers and Investment Banks (KASIB) has also taken steps to promote ESG reporting. KASIB has developed a Code of Environmental and Social Responsibility, which encourages companies to report on their Environmental, Social, and Governance performance.
What are ESG Audits?
ESG Audits are designed to assess an organization’s commitment to environmental, social and governance values. They involve a comprehensive examination of an organization’s practices, policies and procedures related to ESG criteria. The audit typically includes interviews with management and stakeholders, reviews of financial records and other documents, as well as on-site inspections. The results of the audit are used to identify potential areas of improvement and to create an ESG action plan for the organization.
Who should Conduct an ESG Audit?
The ESG Audits should be conducted by an independent third-party, such as a sustainability consultant, company secretary, auditor, or research firm. This ensures that the report is unbiased and provides accurate information. The report should also be overseen by a qualified professional who is knowledgeable about ESG and sustainability issues.
Why is ESG Reporting important?
ESG reporting is important because it provides investors with information about a company’s performance on a range of non-financial issues. Companies that have strong ESG ratings are seen as more reliable investments, as they are more likely to have sustainable and profitable operations in the long-term. ESG reporting also provides a way for investors to assess a company’s ethical practices and commitment to sustainability. This information can be used to make decisions about where to invest, as well as to hold companies accountable for their actions.
ESG Reporting Impact on Society.
ESG has had a significant impact on society by promoting sustainability and responsible corporate practices. The information given in the reports allow the society to make more informed decisions about the company. This reporting has encouraged companies to take a more holistic approach to their operations, taking into account not just financial performance, but also the social and environmental impacts of their activities. ESG reporting has also pushed companies to be more transparent about their activities and to set ambitious sustainability targets. In addition, the increased visibility that ESG reporting provides has made it easier for investors and other stakeholders to hold companies accountable for their actions.
Long are the days when the amount of money made was the sole reason for investment into a company. Now many investors what to see and acknowledge the long run effect of our actions and business ventures.