Kenya: African business leaders have been charged to implement effective ESG strategies in the continent, as they cannot afford to ignore the societal importance of ESG performance which has a direct impact on people’s living standards.
Currently, African organizations appear to be lagging behind global trends in taking action on climate change. According to PricewaterhouseCoopers’ CEO survey, six out of ten CEOs in Africa are concerned about physical and transition risks associated with climate change.
Furthermore, 77% of African CEOs say their company has not made a carbon neutral commitment; this is worse when compared to the global average of 71%. Also, 80% of African CEOs say their organizations have not yet made a net-zero commitment compared to 73% globally.
Commenting on this, Edward Kerich, PwC ESG Lead for East Africa, said: “Our view is that African companies should integrate ESG considerations into their corporate and investment initiatives and activities, and internalize ESG holistically to build trust and ensure long-term sustainability, agility, and competitiveness.”
According to a research conducted by the University of Oxford’s Sustainable Finance Programme, the risks associated with climate change, especially in African countries, have many socio-economic implications such as unemployment, food insecurity, increasing health risks, and migration. Consequently, an increase in company-level ESG performance can result in a positive effect on a country’s living standards – both in developed and emerging markets.
