Kakuzi publishes second environmental, social and governance assessment report - Capital Business
Connect with us

Hi, what are you looking for?

Kakuzi Managing Director, Chris Flowers (left) poses for a photo with Geoffrey Odundo, Chief Executive Nairobi Securities Exchange PLC/NSE

Agriculture

Kakuzi publishes second environmental, social and governance assessment report

NAIROBI, Kenya, Dec 16 – Listed agri-business firm Kakuzi Plc has released its Environmental, Social, and Governance (ESG) report as listed firms begin to adopt NSE guidelines requiring the annual publication of such disclosures.

Speaking at the ESG Report’s launch on Thursday, Kakuzi Managing Director, Chris Flowers said the firm had invested more than Sh1.6 billion over the last four years to enhance its operations, mitigate governance risks and ensure global standards are maintained.

The NSE launched its Environmental, Social and Governance (ESG) Disclosures Guidance Manual on November 30 to improve and standardize ESG information reported by listed companies in Kenya.

The report titled ‘Future-proofing agriculture’ revealed that, at Kakuzi’s Murang’a county-based agricultural production fields, the firm is part and parcel of the surrounding community.

“On an average day, Kakuzi employs 3,000 people, with more than 5,000 school children attending public school learning facilities within its boundaries,” the report noted.

Local suppliers, the report adds, have been servicing procurement opportunities valued at more than Sh484 million annually.

“This ESG report represents our holistic approach to measuring our Economic, Social and Environmental impact across our business. The report also highlights our commitment to sustainability and is aligned with the UN Sustainable Development Goals (SDGs) framework,” the firm’s said.

Flowers added: “Consistent with ESG standards, we have over the last four years paid out over Sh900 million in dividends to our 1,300 shareholders and Kshs 260 million to smallholder avocado farmers.”

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

Advertisement. Scroll to continue reading.

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.

Advertisement. Scroll to continue reading.
Advertisement

More on Capital Business

Kenya

NAIROBI, Feb. 1 (Xinhua) — Kenya approved the commencement of secondary bond trading outside the Nairobi Securities Exchange Thursday. The over-the-counter trading will be...

Aviation

NAIROBI, Kenya, Jan 3 – Trading of Kenya Airways (KQ) shares at the Nairobi Securities Exchange (NSE) has been extended. NSE said that the...

Kenya

NAIROBI, Kenya, Sep 8 – Nairobi Securities Exchange (NSE) Chairman Kiprono Kittony has been shortlisted to be the next chair of the World Chambers...

Markets

NAIROBI, Kenya, April 28 – TransCentury Group Plc (TC) commenced the trading of its new ordinary shares from the recently concluded rights issue on...

Kenya

NAIROBI, Kenya, April 19 – The Nairobi Securities Exchange(NSE) lost Sh229 billion in investor wealth in the quarter ended March 31 2023 as investors...

Agriculture

NAIROBI, Kenya, Mar 24 – Agricultural firm Kakuzi will offer avocado smallholder farmers free maturity testing ahead of the harvesting season. The preharvest maturity...

Kenya

NAIROBI, Kenya, March 22 – The Local Authorities Pension Trust (LAPTRUST) has listed the first Income- Real Estate Investment Trust (I-REIT) to be issued...

Companies

NAIROBI, Kenya, March 2 – The Nairobi Securities Exchange (NSE) has extended the tenure of its CEO Geoffrey Odundo for a period of one...