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Adopting ESG is crucial for investor trust, sustainability, and compliance. Kenyan firms prioritize social impact (healthcare, education, poverty reduction) via technology. Challenges include data collection, limited resources, political instability and economic issues.
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Adoption of ESG is essential for investor confidence, corporate sustainability and regulatory compliance. Kenyan companies place a high value on social effect, emphasizing healthcare access, education and poverty alleviation. They make an impact on society and the environment through technology. Data collecting, inadequate resources and outside variables like political instability and economic difficulties are among the challenges.
The research examines the implementation of ESG in a number of industries, contrasting methods and making suggestions for enhancement. It offers a comparative analysis of ESG practices, emphasizing important tactics and the demands of investors for more integration.
Case studies illustrating the application of ESG:
A) Equity Group Holdings
Initiatives:
– Equity Afia: Provides affordable healthcare to low-income communities.
– Equity Group Foundation: Funds healthcare, education and environmental preservation initiatives.
– Equity Bank: Emphasizes women's empowerment through financial services and goods for female entrepreneurs.
B) Safaricom's Democratizing Finance with Mobile Money
Focuses on digital inclusion and social impact.
Initiatives include M-Pesa Foundation for social impact projects.
– M-Tiba: Mobile health platform for mobile healthcare access and payment.
– Pioneered M-Pesa to bridge financial inclusivity gap in Africa, over 30 million Kenyans benefit from M-Pesa, fostering small businesses and addressing socio-economic disparities.
– Key learnings: local innovation, mobile technology, financial inclusivity and tech-finance collaboration.
C) East African Breweries Limited (EABL)
– Focus: Water conservation and responsible alcohol consumption.
Initiatives
– Implementing water-saving technologies and community-based water projects.
– Promoting responsible drinking through campaigns and community development projects.
D) Unilever
– To lessen its influence on the environment, Unilever launched the "Unilever Sustainable Living Plan" in 2010.
– 75% of factories had 0% non-hazardous waste going to landfills by 2020.
The company's carbon emissions dropped dramatically.
– More environmentally friendly goods resulted from sustainable ingredient procurement methods.
The supply chain showed positive ripple effects.
E) The Transition of Ørsted to Renewable Energy
– In order to reallocate resources and capital to offshore wind turbines, Ørsted sold off its coal and oil companies.
– The company's value and reputation increased significantly as a result of this transition, which resonated with green investors and stakeholders and resulted in a large reduction in CO2 emissions, making it a global leader in wind energy.
1) A comparison between the International Sustainability Standards Board (ISSB) and the European Sustainability Reporting Standards (ESRS):
The ISSB seeks to create internationally accepted standards for uniform disclosures across jurisdictions, while ESRS concentrates on standardizing reporting throughout Europe using a double materiality perspective.
2) Adopting these criteria for sustainable growth necessitates risk management, stakeholder involvement and regulatory compliance.
3) Adherence to these standards improves corporate governance and promotes long-term wealth creation, as demonstrated by case studies of businesses such as Unilever and Shell
4) Addressing environmental and social issues and promoting a robust global economy depend on the integration of ESRS and ISSB standards.
a) Develop ESG Strategies
b) Enhance ESG Standards and Regulations
c) Improve ESG Information and Openness
d) Promote Stakeholder Involvement
e) Make Use of Innovation & Technology
Can adopting leading ESG practices enhance corporate value?
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