This archive report was first published on 30 June 2021.
On June 30, 2021, the Nairobi Securities Exchange (NSE) published an ESG disclosures guidance manual for listed companies and other organizations seeking to incorporate environmental, social, and governance (ESG) into their strategies and report on their performance.
The manual, supported by the Global Reporting Initiative, serves as a 'how-to' document, guiding companies on identifying material ESG topics, measuring their materiality, integrating ESG into their strategies, and reporting on ESG performance in line with international sustainability reporting standards.
The move was prompted by the increasing interest from investors and corporate stakeholders in ESG matters. Modern investors in the capital markets are more discerning and demanding more disclosure from listed companies.
"The COVID-19 pandemic, global environmental and social crises, the transition to renewable resources, and renewed focus on human rights practices have intensified the need and drive for ESG disclosures by corporates," the NSE stated.
The manual aims to help listed companies address the shift in corporate performance assessment towards a more holistic view of both financial and non-financial performance. To facilitate this assessment, companies must disclose both financial and non-financial performance metrics to a diverse set of stakeholders interested in understanding the wider economic, social, and environmental impacts of companies on society while pursuing shareholder value.
The NSE invites stakeholders and the public to submit comments on the proposed ESG disclosure guidance manual, available on the Market Regulations section of www.nse.co.ke. Comments should be submitted by July 30.
