NSE unveils first ESG reporting guidelines for corporates

Publicly listed firms have started aligning their operations to the global environmental, social and governance (ESG) considerations.

This follows the launch of the ESG “Disclosures Guidance Manual” by the Nairobi Securities Exchange (NSE) in partnership with the Netherlands based Global Reporting Initiative (GRI), in Nairobi yesterday.

The manual comes on the backdrop of a 2020 global survey by FTSE Russell, which found that sustainable investment is now firmly part of the mainstream - with 81 per cent of Europe, the Middle East and Africa asset owners expressing interest in applying ESG considerations in investment criteria.

NSE Chief Executive Geoffrey Odundo said the manual would see the bourse improve and standardise ESG information reported by listed firms. “These guidelines provide a granular, tactical approach to ESG reporting that meets international standards on ESG reporting,” he said.

He observed that stakeholders now want comprehensive information from companies - not just financial performance, but also on governance and societal issues.

“Covid-19 pandemic, global environmental and social crises, the transition to renewables and the renewed focus on human rights has intensified the need and drive for ESG integration by corporates,” he said.

“Consistent application of these guidelines will help improve the capital markets by providing information that investors are now demanding to facilitate decision making and capital allocation.”

GRI Chief External Affairs Officer Peter Paul van de Wijs said transparency on the impacts of a business is essential for continuous improvement and stakeholder relationships.