Nairobi Securities Exchange (NSE) listed firms should adopt sustainable practices to enhance competitiveness and attract investors.
This is after it emerged that listed firms with solid Environmental, Social and Governance programmes (ESG) practices attract more interest from investors.
Ministry of Environment and Climate Change Administration secretary , John Elung’ata on Friday said global stakeholders are increasingly demanding transparency and sustainability from companies.
“We encourage businesses to incorporate ESG considerations into their operations, to adopt sustainable practices, and to promote social responsibility," ,” said Elung’ata
Under ESG, companies develop and deploy their sustainability initiatives, including identifying, assessing and managing risks that emanate from social and environmental issues affecting their entire value and supply chains.
NSE issued guidelines in partnership with Global Reporting Initiative (GRI) requiring firms to announce how they deal with issues such as community, number of employees, corruption, customers’ data privacy and environmental impact.
However, ESG adoption at the Nairobi bourse has been slow despite the regulators push for all listed companies to declare.
As at December last year, only 29 companies, (46 percent) of listed companies at Nairobi Securities Exchange had integrated ESG disclosures in their financial or annual reports. This was despite a November deadline.
In an effort to change this the Nairobi Securities Exchange (NSE), has partnered with Risk Insights and GreenCo ESG Consultants, to drive ESGs at the bourse.
It held an Executive Leadership Breakfast aimed at providing a platform for industry leaders to share key insights, strategies, and best practices for navigating the complex ESG landscape.
By fostering knowledge-sharing and collaboration, the event sought to shape the future of sustainable business practices in Kenya.
"ESG issues have become paramount in today's global business landscape, and their impact on capital markets cannot be overlooked," said Geoffrey Odundo, Chief Executive of the NSE.
Risk Insights CEO Andrey Bogdanov said the partnership will provide a powerful platform for insightful data and discussions on the changing world of ESG and its implications for companies operating in Kenya.
“Through this event, we hope to equip leaders with valuable strategies and share best practices to navigate ESG challenges successfully."
GreenCo ESG Consultants, chief executive Irene Keino added that that integrating sustainable practices into business operations is essential for long-term value creation.
