Kenya: Kakuzi Publishes Second Environmental, Social and Governance Assessment Report

The Agriculture sector, Flowers noted, contributes 35 per cent of the national GDP and remains a significant employer.

With increased investments, the country, he said, had earned an estimated USD1.3 billion from horticulture, surpassing an estimated US$ 1 Billion earnings from tea.

He stressed that operations from agricultural economic activities will need to be closely monitored to avert climate change-related risks.

As per the tenets of ESG reporting, Kakuzi has adopted a broader outlook on sustainability matters beyond climate action. The firm, he confirmed, is actively adhering, monitoring and making ESG disclosures.

Among other ESG compliance factors, Kakuzi, he reiterated, was the first Company in Kenya to implement an Operational Level Grievance Mechanism (OGM) aligned to the UN Guiding Principles of Business and Human Rights.

This process, known as SIKIKA, which loosely translates to ‘be heard’, is designed to address any grievances in a transparent, credible, legitimate, and, where appropriate, independent manner.

Kakuzi is also the first organisation in sub-Sahara Africa to establish a functional Independent Human Rights Advisory Committee (IHRAC).

Following the recent publishing of ESG reporting guidelines, listed companies will soon be required to report publicly, at least annually, on their ESG performance through an integrated report or a separate sustainability report.

This, according to NSE, is intended to encourage uniformity in ESG disclosures even as a comprehensive ESG legal framework is awaited.

Listed companies currently have a year-long grace period from the November 2021 issuance of the NSE ESG guidelines to interact and familiarize themselves with the reporting steps.