TLDR Newsletters

SUSTAINABILITY TLDR NEWSLETTER: EDITION 20

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL Mandatory Sustainability Reporting for Listed Chinese Companies China’s stock exchanges – Shanghai, Shenzhen and Beijing – released mandatory sustainability reporting guidelines for major Chinese companies listed in China and overseas to start analyzing and reporting on sustainability-related aspects at a governance, strategy, risk management and metrics and targets perspective. The mainland China stock exchanges are keen to get their companies practicing sustainability concepts and raising the caliber of listed companies for ESG-related investment. Medium and small sized companies are encouraged by the guidelines to report on a voluntary basis. The reporting guidelines also include topics on biodiversity, circular economy and governance (e.g. anti-bribery, anti-corruption), of course among others – going beyond climate, and great to see social aspects, nature, and governance practices included. Additionally, the guidelines will require companies to report on how they are taking action to support China’s development strategy e.g. rural revitalization, innovation, etc. The guidelines will come into effect for the reporting year 2025, giving Chinese companies time to prepare for double materiality reporting – risks and impact of sustainability on the company; as well as the company’s impact on environment and society. My two-cents: First off, I think it’s pretty cool that China created the Beijing Stock Exchange in 2021, specifically to serve SMEs in China. Next, it’s great that their national development agenda and private sector action towards China’s own sustainable development is required as part of the reporting. A key focus for ensuring their own development agenda for their citizens, their economy, their environment. As a global powerhouse, China is already taking a global leadership role in renewable energy, emissions reduction, and now reporting, and this will influence business practices in many other countries. EU Bans Misleading Product Sustainability Claims The EU Parliament signed off to ban misleading and false sustainability claims by products/brands. This aims to protect consumers from false advertising and misleading marketing practices, and to help consumers make more informed purchasing choices and make product labelling clearer and more trustworthy banning the use of general environmental claims like “environmentally friendly” – without proof. Additionally, products that use off-setting to reduce emissions, can no longer claim to have a reduced, positive or neutral impact on the environment. The new law also has rules on product durability e.g. guarantee information has to be more visible, products can no longer claim specific durability if there is no proof e.g. lasts up to 20 times longer; encouraging consumers to replace consumables earlier than strictly necessary; claiming a product is repairable which in reality it is not. When passed into law, EU member states will have 2 years to integrate the law and its rules into national law. Also in the pipeline is the EU Commission’s directive on Green Claims, which will aim to give greater detail and structure to green claims in the EU. My two-cents: It’s disheartening in some way that we need laws to stop us from proactively making false claims; and uplifting that (thanks goodness) there are laws to stop us from proactively making false claims! AFRICA Foresight Africa 2024 report The Brookings Institution has published its annual Foresight Africa report, which highlights key priorities for the year. Which one would hope African policy makers are attentive to for better outcomes for the continent. The report presents 5 key themes: development finance, climate change, digital economy, entrepreneurship, and trade and regional integration. These themes are support by cross-cutting topics: gender, governance and youth. The report also provides insightful perspectives from leading experts on these themes and topics. Here are some highlights to share with you: The Economic Intelligence Unit Africa outlook report for this year anticipates that Africa will be the 2nd fastest growing region in the world. This will be primarily driven by the services sector and East African countries. But it’s worth being cautiously optimistic as the continent will still face challenges with debt distress, inflation, security, elections, etc. as the global economy will remain uncertain, weak and abound with volatility, according to the World Economic Forum’s global outlook. Development finance – mobilizing domestic resources to strengthen national financial systems, and using development funds for what they are intended will be key. Traditional sources of finance won’t be sufficient to bridge the gap; and private finance needs to come to the table at scale. African policy makers need their own home-grown solutions, even while they continue to push for global financial systems to change. Climate change – the continent is at the heart of it: bearing the burnt, conserving the carbon sinks (the world’s lungs) and other vital ecosystems, and home to critical minerals needed for Africa and the world’s energy transition. So rich a continent, yet so poor e.g. energy-access poor, yet renewable energy is everywhere. Policy-makers need to pay attention to adaptation and mitigation – an inclusive low-carbon growth agenda, is the continent’s hope for its future. Missing the mark, isn’t an option. Entrepreneurship – SMEs are the lifeblood and engine of Africa’s continental economy and they create about 80% of jobs on the continent. Across the continent, 12M young people move from work from school, into markets that have only about 3M jobs available on the continent. Policy makers need to focus on establishing more enabling environments for SMEs to grow and create jobs; as well as opportunities within climate and sustainability to establish domestic SMEs that create employment opportunities. It’s unrealistic to imagine that self-employment is the only answer. African Continental Free Trade Agreement (AfCFTA) – member states, private sector can do more to accelerate this milestone agreement that promotes trade, integration and connectivity within the continent. It will take time (the EU took about 25+ years to establish a single market – from the 1960s to the early

SUSTAINABILITY TLDR NEWSLETTER: EDITION 19

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL WEF Global Risks Report 2024 The World Economic Forum’s (WEF) Global Risks Report 2024 highlights findings from the WEF’s annual perception survey bringing together insights from +1500 global leaders (academia, business, government, civil society and international community) and +200 experts. This year’s report considers risks in our times of ‘transition and governance systems being stretched beyond their limits’, states the report’s MD, Saddia Zahidi in her introduction. Here are some insights gleaned from the report: There are 4 key systemic factors that will shape risk for the next decade: Climate change – global warming and its consequences to Earth’s systems. (Unfortunately), older generation decision-makers consider this less pressing in the short term than younger generations; which is a problem for the actions needed now to avoid long term consequences. Demographic change – global demographic changes worldwide. Changes in size, growth and structure of populations e.g. ageing and youth dividends, involuntary migrations e.g. due to conflict, climate, etc. create critical shifts that can influence politics, economy and social stability. Technology acceleration – misuse of, abuse of, and false information continues to exacerbate social and political cohesion, and perception of reality are getting even more distorted and truth more elusive. Technology gaps between haves and have nots will widen creating more inequity. Geopolitical power – evolution and shifts in the sources and concentration of geopolitical power. State fragility, information abuse, technology, climate change and demography will all play into geopolitics and power at an international level. In the short term (next 2 years), our global socio-economic vulnerability and triggers will be amplified e.g. economic slump, conflict, mis- and dis-information, climate impacts. For the next decade, globally, climate change and our Earth systems will be the priority and will truly and fully test our adaptive capacity (broadly, our ability to cope with damage, respond to consequences, look for opportunities), lack of trust in information and the impacts of technology will also take the stage. My two-cents: The next couple of years will be critical e.g. for our Earth systems, equity and justice, international cooperation, political economy, and more. Although it may all look bleak – the future is not yet set in stone. 2024 looks full of shifting dynamics, voters electing leaders, and lots of spinning plates up in the air. What will our leaders focus on or drop? I hope you’ve done your warm-up already. Now put on your running shoes, get your support gear and your centering music, we are headed into a marathon and not a sprint. Key Outcomes from COP28 Climate Talks The hype is settling as this year kicks off, but hopefully the December COP28 outcomes will reverberate into 2024 and beyond. World Resource Institute (WRI) provides useful insights into the Dubai climate talks outcomes, and here are some highlights: Speed up shift to clean energy from fossil fuels – finally transition away from fossil fuels is decided (it’s taken 30 years) so that we can achieve net zero by 2050; and triple renewable energy capacity and double efficiency by 2030. Not surprisingly, there’s lots of loopholes in the UAE Consensus on the transition and much of the detail will need to be worked out at a national level and Nationally Determined Contributions (NDCs) for submission in 2025. A loss and damage fund up and running – this fund will help vulnerable countries deal with climate impacts beyond what people can adapt to. About $700M is now in the fund, but this is nowhere near the reality of cost of damage these countries will face, its only 0.2% of what’s needed annually. Multilateral institutions like the UN and World Bank will have a critical role in making this fund a reality. Global Goal on Adaptation established – this goal is about enhancing adaptive capacity, resilience and reducing vulnerability to climate change. It’s very early days on this and the framework needs clarity including on the financing for this goal. Climate finance deferred to COP29 – countries failed to meet the $100billion goal in 2021, and any new climate finance goal needs to take the needs of developing countries into consideration. This new goal, the New Collective Qualitative Goal (NCQG) will be the issue at the next COP with negotiations and discussions this year paving the way to develop a framework and text in time for COP29 in November 2024. Strengthen national commitments – the global stock take revealed the glaring gap between national policy, action to reduce emissions and what is required to achieve the Paris Agreement. Current global policy and action gets us to 2.7C degrees, when we need to get to 1.5C with 2.0C degrees max. More ambitions national policy and action is urgently needed and preparation for updated NDCs starts this year. No decision on carbon markets – carbon markets as part of the Paris Agreement (Article 6) proved too tricky to align and was deferred to COP29. Food is a global priority – 195 countries covering 80% of the world, committed to include food systems and food into their NDCs by 2025. This milestone declaration paves the way for sustainable agriculture, resilient food systems and climate action. Cities as partners in climate action – integral to national and global climate action, cities will play a vital role in climate ambition and action e.g. key economic centres, emissions contributors, centres of populations and communities; and are the frontline of a climate crisis. The Coalition of High Ambition Multi-level Partnerships (CHAMPS) Initiative, bring urban areas (states, cities, towns) into national action plans. Increased momentum to curb Methane emissions – more countries joined the Global Methane Pledge to cut Methane emissions by 30% from 2020 levels by 2030 and concerted action by governments, companies and philanthropies were made e.g. The US

SUSTAINABILITY TLDR NEWSLETTER: EDITION 18

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL: State of Climate Action 2023 All eyes are on the COP28 in Dubai. It is a critical one – well they all are, but this COP also delivers the (official) 1st global stock take report on the Paris Agreement, the factual review of the our global progress on limiting global warming to 1.5 degrees C and what needs to be done to keep 1.5 degrees C limit within our reach. Not surprisingly, because I think we know it, we are so off track; that if we actually want to keep the 1.5 limit, we will need a ‘twofold acceleration’ on nearly all indicators between now and 2030. The World Resource Institute (WRI) State of Climate Action 2023 report, gives a couple of great visuals that provide a useful summary of what needs to be done and in which sectors: My two-cents: Because it is COP28 week, I am keeping this short – there will be plenty information flooding your senses during this time. The outcomes of COP28 will of course be super important, but more so will be the underlying question on whether we will actually take the action needed or not – as countries, industries, citizens? We reap what we sow. Global Plastics Treaty Talks In March 2022, world leaders at the UN Environment Assembly, committed to end plastic pollution and have an internationally legally binding agreement on this by 2024. Plastic production was about 348 million tonnes in 2017, a global industry valued at US$522.6 billion, and it is expected to double in capacity by 2040. Nearly every piece of plastic is derived from fossil fuels. To reach the globally binding agreement by 2024, Intergovernmental Negotiating Committee (INC) began negotiations in 2022 onwards. In mid-November the INC and stakeholders met in Nairobi to further negotiate progress towards the global commitment to end plastic pollution. At the end of November INC talks, not much progress had been made. The UNEP expressed that there had been forward motion towards a treaty; but many member states and stakeholders found that progress was stalled by the influence countries with low ambitions and lobbying industry (business) in the process. The next round of talks will be in April 2024, if member states aren’t careful; constructive negotiations and a treaty won’t see the light of day. My two-cents: Perhaps those at the negotiating table are too far removed from the plastic pollution problem – in their cities, neighbourhoods, streets, rivers and oceans. Perhaps balance of power, role of government for the people, and the role of industry; has changed more significantly than we care to admit. AFRICA: A Fair and Transparent International Tax Cooperation African countries pushed for change in global tax cooperation at the UN and the vote was passed. The resolution titled “Promotion of inclusive and effective international tax cooperation at the United Nations, presents opportunity for fostering tax equity and strengthening tax systems. Presently, the OECD is the platform where global tax matters are discussed – obviously, African countries, and many other continents and their countries are not part of nor represented in the OECD. Majority of what makes up the globe, isn’t part of the global tax discussion… The African Union hopes better international tax cooperation will lead to more level playing field, reducing tax evasion and avoidance by the global North; and more ability to mobilise domestic resources for development for the global South. In 2022, the OECD introduced the global minimum corporate tax, to ensure that multinational companies (MNCs) are subject to a minimum 15% tax rate in every country of operation as from 2023, thus preventing situations where these multinational companies take advantage of differing tax regimes to avoid paying tax. A KPMG insight talks to tax in 2030: citizens will demand more from companies on their role in society. Companies will have come to accept this role and as a result will demand more from governments to keep their social contracts through taxes paid. Globalisation will still thrive thanks to global tax transparency as it grows in leaps and bounds; and taxes will spur on much-needed innovation in countries. And just 6 years from now, taxes will be a key lever driving sustainable development. My two-cents: This UN vote was like the ‘Plebeians versus Patricians’, a Roman comparison I use cheekily for the ‘have-nots’ versus the ‘haves’. Although it all sounds so promising in 2030 – we are not there, and aspiration and reality are very different. The global South has won the 1st set at the UN; but the global tax transparency and equity game is far from over. The AU should learn to always sleep with one eye open. Africa and COP28 – Climate & Development In November 2023, the Mo Ibrahim Foundation published Africa on the road to COP28: reconciling climate and development. The report builds on the Nairobi Declaration from the Africa Climate Summit, and sets the scene for what Africa (the continent and its peoples) need from COP28. Importantly the report states, ‘Achieving development goals in Africa, whether the UN’s SDGs or the AU’s Agenda 2063, will not be possible without a massive increase in energy use and energy access for all on the continent, as it is already the case in developed countries. There can be no trade-off between climate and development goals, no saving the planet at the expense of almost one fifth of its people. But this does not mean Africa will follow the historical carbon-intensive development path seen in the Global North.’ This to me, nails the challenge and the opportunity at hand (love it!). The African continent needs 3 key priorities addressed conclusively at COP28: Focus on adaptation – for its low emissions contribution to the global climate crisis, Africa’s most pressing issue is adaptation rather than mitigation. Unlocking and leveraging Africa’s green assets – prioritizing local value addition,

SUSTAINABILITY TLDR NEWSLETTER: EDITION 17

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL: California Signs Climate Disclosure into In October 2023, the State of California signed into law that companies doing business in the state with annual revenues of USD 1 Billion and more are to report on both direct and indirect GHG emissions starting 2026. Another law also came into being, the Climate-Related Financial Risk Act, that companies generating USD 500 million and more report on their financial risks related to climate change and their plans to mitigate these risks. About 53 of the World’s Fortune 500 are based in California, and despite push back from the California Chamber of Commerce and other lobby groups, dozens of major companies e.g. Microsoft, Apple, Patagonia, among others support these rules. Many global and large companies already provide climate-related disclosure; and around the world reporting requirements are increasing from the EU to New Zealand, to Singapore to Kenya. According to KPMG’s Survey of Sustainability Reporting 2022: 96% of the world’s largest 250 companies already provide sustainability disclosure. Asia Pacific leads with 89%, Europe 82%, Americas 72% and Middle East & Africa 56% of the top 100 companies in these regions reporting on sustainability. The Global Reporting Initiative (GRI), Taskforce on Climate Related Financial Disclosures (TCFD), and Sustainable Development Goals (SDGs) were the most used anchors for sustainability reporting. California is home to global technology companies e.g. Apple, Google, etc; leading retailers e.g. Walmart; and global oil and gas companies e.g. ExxonMobil, Chevron, etc. A number of large US banks e.g. Wells Fargo, Bank of America, etc also do a significant amount of business in California. These laws are likely a major step is embedding climate disclosure and tangible climate action, in Corporate America – and beyond. My two cents: Cities, which are governed by states, have a critical role to play in addressing the climate emergency and the actions to mitigate it and adapt to it – when push comes to shove, it is the governor who is in the hot seat (remember C-19). Cities are at the heart of the economy, and nearly half of world populations today live in urban areas. We need leadership at all government levels tackling climate change in ways that can deliver systemic change. The IPCC is very clear that there is little time left, so if there’s a big lever that can be pulled… let it be pulled. EU Carbon Border Adjustment Mechanism (CBAM) Kicks In The EU’s CABM took effect October 2023, it aims to put a price (tax) on carbon emitted from carbon intensive goods entering the EU helping to ensure the EU’s climate objectives are not undermined, and to promote cleaner production in non-EU countries. EU-based companies pay about EUR 80 to emit one ton of carbon dioxide. Under the CBAM, importers will be charged the same as domestic producers. Importers are expected to start reporting (only) as of 31st January 2024. The EU is concerned about carbon leakage – the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries with laxer emission constraints. In a sense it is how the EU is tackling offshoring production to other non-EU countries with ‘weaker’ regulation and governance on GHG emissions. The CBAM will initially apply to (initial phase): Cement, iron and steel, aluminium, fertilisers, electricity and hydrogen in the starting pilot phase, but it will expand over time to cover sectors in the EU Emissions Trading Scheme. In the initial phase, importers of goods will only report on GHG emissions (direct and indirect), without financial payments, but this will also change in the next few years. From 31st December 2024, importers will have to have authorized status to import any of the goods in scope (initial phase) into the EU. Not surprisingly, the EU CABM has received mixed sentiments; some see it as a positive step in climate action, others as a protectionist measure. A recent article from The Conversation estimates that the new mechanism will wipe out 0.91% of the African continent’s GDP, with annual losses of nearly USD 6 Billion. India and the US have introduced on their own measures in response. My two-cents: Once again supply chains are taking a bigger role in climate action, and business accountability for emissions – in time with punitive financial repercussions – is taking effect. International disclosure expectations are now driving national private sector agendas, thanks to globalization. I cannot deny the pain of the pressure and resources needed to meet disclosure expectations today. But I do hope that in 2030 we will feel a little better that we did go through the pain (and probably still will be), but we will be seeing some results, or understand why there are no results. AFRICA: Tax Transparency in Africa 2023 In July 2023, the Global Forum on Transparency and Exchange of Information for Tax Purposes, published its Africa Initiative Progress Report. Domestic resource mobilization, tackling tax evasion and all forms of illicit financial flows are lifelines to achieving the continent’s Agenda 2063, the SDGs and reducing dependence on external funding sources. 38 African countries provided input to this 5th edition report. The objective of the Africa Initiative is to unlock tax transparency and exchange of information for Africa ensuring that countries are able to leverage improvement in global tax transparency to tackle tax evasion. UNCTAD highlighted that the African continent loses about USD 50 billion every year in illicit financial flows i.e. money “generated by methods, practices and crimes aiming to transfer financial capital out of a country in contravention of national or international laws (OECD, 2014). The continent needs about USD 200 billion every year to bridge the SDGs financing gap. So not surprisingly, tax mobilization and tax transparency are key levers for African countries to finance their sustainable development. Reforming the international tax (and financial) architecture will also have a

SUSTAINABILITY TLDR NEWSLETTER: EDITION 16

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL: Landmark UN Biodiversity Agreement In December 2022, the world reached an historic agreement to protect our nature. I thought I would highlight this here because global momentum is rapidly building towards protecting our global biodiversity; and importantly, so is the private sector’s integral role in conserving and protecting biodiversity. Biodiversity is the variety of life on Earth and the natural patterns it forms. The key biodiversity/nature SDGs are SDG 14 (life below water), SDG 15 (life on land) (UNEP). The landmark Biodiversity Agreement adopted four goals and 23 targets to address biodiversity loss and restore natural ecosystems. Here are some key targets by 2030 I’d like to highlight: Require large and transnational companies and financial institutions to monitor, assess and transparently disclose their risks, dependencies and impacts of biodiversity on their operations, supply and value chains and portfolios Conserve and manage at least 30% of the world’s lands, inland waters, coastal areas and oceans. Today only 17% of terrestrial areas and 10% of marine areas are under protection. Restore 30% of degraded terrestrial and marine ecosystems Reduce loss of high biodiversity important areas to nearly zero Cut global food waste by half, significantly reduce overconsumption and waste generation Reduce by half excess nutrients and risks posed by pesticides and highly hazardous chemicals By 2030, phase out or reform subsidies that harm biodiversity by min. $500 billion per year; and scale incentives for biodiversity conservation Broadly the four overarching goals of the UN Biodiversity Agreement address: Maintaining and increasing the area of natural ecosystems; halting and reducing human-induced extinction of species, and maintaining and safeguard genetic diversity of wild and domesticated species Biodiversity is sustainably used and managed, including ecosystem functions and services and restoring ecosystems in decline Fair and equitable sharing of monetary and non-monetary benefits with indigenous and local communities of genetic resources, digital sequencing from genetic resources, traditional knowledge associated genetic resources, and protecting traditional knowledge associated with genetic resources Ensuring adequate means of implementation – finance, capacity building, technical and scientific cooperation, access to and transfer of technology This agreement impacts land and water use, farming practices, waste management practices, use of ecosystems functions, nature-related financial and non-financial disclosures, environmental and social impact assessments, equity and social justice, and more. My two cents: Business accountabilities and responsibilities are expanding – protecting nature will require fundamental business model change, transparency, disclosure and investment. We are headed into a new world where people, planet, peace, prosperity and partnership have to go hand in hand. If may be you are wondering why/how nature is key to human life, and that we are at a dangerous tipping point: WWF Living Planet Report 2022. EU De-forestation Free Regulation In May 2023, the EU adopted its de-forestation free regulation – I want to draw to your attention to this in case you missed it. This EU regulation is part of the EU Green Deal to protect the world’s forests, and focuses on commodities into the EU. Imports to the EU are one of the biggest drivers of global deforestation. It is another landmark international approach that is reinforcing the urgency to protect nature e.g. forests, ecosystems like wetlands, grasslands, etc. This EU deforestation free regulation currently tackles seven commodities – cocoa, coffee, soy, palm oil, wood, rubber, and cattle – and their derivatives and products e.g. chocolate, cosmetics, leather, furniture etc. Over the next few years’ additional products may be added to this list. The regulation requires that any company placing these commodities, derivatives and products into the EU market conduct due diligence to ensure they are deforestation-free as of 31st Dec 2020 i.e. the goods were not produced on land that resulted in deforestation or forest degradation after 31st Dec 2020. Large and medium-sized companies importing/exporting to the EU (non-EU based and EU-based) have 18 months after this regulation enters into law to implement the rules. My two-cents: It was inevitable that supply chains will take a bigger role in reducing negative social and environmental impacts; and instead (finally) be expected to make concerted effort to have positive impacts. Whether supply chains can adapt will come with a high price…in transforming operations, or perhaps continuing business as usual to push our environment beyond its limits. AFRICA: Nairobi Declaration on Climate Change The African continent’s first-ever climate summit took place in Nairobi in early September bringing together African and global stakeholders to discuss climate action from the African continent’s perspective. The Nairobi Declaration on Climate Change and Call to Action by African leaders, was the key output of the Africa Climate Summit, and it is Africa’s joint position on climate action for the 30 Nov – 12 Dec 2023 COP 28 in Dubai and beyond. There were many other discussions and outcomes from the Summit, Africa.com gives a summary: Africa Climate Summit: Wrapping Up a Milestone Event. Here are what Africa’s leaders committed to: Putting in place an enabling environment to attract investment in green growth and inclusive economies Driving Africa’s economic growth and job creation while limiting Africa’s emissions, leapfrogging traditional industrial development fostering green production and supply chains on a global scale Focusing economic development plans on climate-positive growth, just energy transitions, renewable energy generation for industry, restorative and climate aware agriculture, and essential protection and improvement of nature and biodiversity Strengthening continental (intra-African) collaboration, grid connectivity and accelerating operationalization of the AfCFTA agreement Advancing green industrialization prioritizing energy intensive industries to trigger renewable energy growth and adding value to Africa’s natural resources Boosting agricultural yield through sustainable practices to enhance food security and reduce negative environmental impacts Lead in developing global standards, metrics and mechanisms to value and compensate for protection of nature, biodiversity, socio-economic co-benefits and provision of climate services Finalise and implement Africa Union

SUSTAINABILITY TLDR NEWSLETTER: EDITION 15

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! Global: Sustainability Frameworks for Organisations Previously, business organisations were required to voluntarily self-report their progress on sustainability adoption to build credibility and show their commitment towards sustainable development values and principles. Various frameworks such as the Global Reporting Initiative (GRI), UN Global Compact Network 10 principles and the Sustainability Accounting Standards Board (SASB) can be employed by organisations across the board to report their sustainability progress voluntarily. However, mandatory enforcement of sustainability reporting seems to have caught on. In January 2021, The European Commission introduced the Corporate Sustainability Reporting Directive 2021, a law that requires large corporations and listed SMEs in the region (over 50,000) to adopt a standardised sustainability reporting framework starting from Jan 2023. This directive differs from the EU’s 2014 Non Financial Reporting Directive as the new format requires submitted data to be audited. The international Financial Reporting Standards (IFRS) international sustainability standards Board ISSB launched two inaugural industry-specific sustainability reporting standards, S1 that requires firms to report their sustainability risks and opportunities and S2 which is an extension of S1 that requires firms to report on transition risks and opportunities. Furthermore, all major global economies including the UK, the US, South Africa, China and Singapore have all followed suit and entrenched standardised sustainability reporting in law. My two cents: Sustainability reporting, whether complex or simplified, is becoming the norm for any company, especially if you expect to have investors, lenders (who are not your family, friends)! If you haven’t already, the sooner your company starts reporting the better. Your first report will be a challenge, it gets better – and importantly, your business’ operations and strategy will benefit more than you would have imagined. AFRICA: Regenerating Africa’s Economy and Forests The United Nations Conference on Trade and Development (UNCTAD) asserts that fair international trade policies contribute to sustainable development by creating jobs, fostering efficient use of resources and stimulating entrepreneurship to lift people out of poverty. In recognition of this, Africans are already pushing for an African free trade area to boost intra-African trade. A series of talks on the African Continental Free Trade Agreement (AfCFTA) have been already held to create the infrastructure and institutions to make the agreement work. The latest discussions highlighted the importance of engaging the private sector in actualizing the FTA and the involvement of SMEs and women and also their empowerment in enabling more cross-border business. The AfCFTA initiative in conjunction with other entities such as the Pan African Chamber of Commerce and Industry has a series of programmes to aid women and SMEs in expanding their capacity under AfCFTA such as the Protocol on Women and Youth in Trade and Export Training Programme for SMEs. Preserving Africa’s Forests Of all the seven continents in the world, Africa has the largest forested land mass. The good thing is that 90% of African forests are natural. However, they face a huge threat from over-exploitation of timber and illegal logging, agricultural expansion and mining and urbanisation. Between 2015 and 2020, Africa lost 4.41 million hectares of trees to deforestation annually. Some of the suggested ways to address this issue has been: My two cents: African communities should be empowered to manage local natural resources. In the case of forests, it would be more appropriate to empower local communities to manage forests for direct economic gain and also empower them to protect them. KENYA: Internal Security CS to Allow Integration and Resettlement of Refugees For several decades now, Kenya has remained as one of the most politically stable countries in the East and Central Africa region. Whenever one of the neighbouring countries faces political upheaval, Kenya hosts the refugees. South Sudan, Rwanda, Somalia are just a few. And as tensions rise in Ethiopia and Sudan, Kenya may once again be hosting additional refugees. For a country already facing high population, drought and hunger, an influx of refugees puts a strain on already strained environment and resources. Refugees in Kenya are highly dependent on humanitarian relief and are seen to pose a threat to the internal security of the country. The United Nations High Commission for Refugees (UNHCR) and the International Labour Organisation (ILO) have been advocating for African countries to review their refugee policies. The key idea has been to review policies and laws to reduce refugees’ over reliance on humanitarian aid and allow them to engage in economic activities in the host countries. Kenya does not allow refugees to reside outside camps, operate businesses or even seek employment locally. However, this is bound to change. Kenya’s Internal Security Cabinet Secretary, Kithure Kindiki, has promised to allow integration and resettlement of refugees who are camped along the country’s borders such as Kakuma, Hagadera and Dadaab. My two cents: Kenya can embrace refugees from all walks of life for humanitarian and other reasons. When allowed to integrate, refugees bring with them cultural diversity, productivity in new skills, compliment the job market and bring in fresh ideas and skills.

SUSTAINABILITY TLDR NEWSLETTER: EDITION 14

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL: 2023 Sustainability Leaders GlobeScan Sustainability Survey This is an annual survey by GlobalScan and The Sustainability Institute by ERM which asks sustainability experts which organizations – companies, non-governmental, and governments – are leaders in sustainable development; and what are priority sustainability issues. Over 500 sustainability experts across 60 countries participated in the survey. Key insights from the survey highlight: Climate change, biodiversity, water and deforestation as the most urgent sustainability issues to address Recent legislative and international agreements have given much needed momentum for sustainability action e.g. global biodiversity agreement to protect nature by 2030, the EU’s Green Deal for a climate-neutral continent, EU regulation on deforestation-free products ensuring EU citizens don’t use products that contribute to deforestation or forest degradation, US Inflation Reduction Act the single largest investment ever on climate action, and adoption of sustainability-related disclosures e.g. the EU Corporate Sustainability Reporting Disclosure (CRSD) which expects reporting on supply chains of EU-based companies that are outside the EU, among others. From an NGO perspective, WWF, Greenpeace and United Nations/Global Compact were the global NGO leaders in advancing sustainable development with collaboration and stakeholder engagement, and long term commitment being key reasons for their leadership. Patagonia overtook Unilever as the global corporate sustainability leader, with IKEA coming in 3rd. Embedding sustainability in core business models and strategy, evidence-based impact/action and clear targets and goals set these corporate leaders ahead of other companies. Last year, Patagonia new ownership structure made Earth its only shareholder. From a regional lens, the top 2 leaders were: North America: Patagonia; Microsoft; Europe: Unilever, IKEA; Asia-Pacific: Mahindra & Mahindra (automotive), City Developments Ltd (real estate); Africa & Middle East: Safaricom (telecommunication), Nedbank (financial); LatAm/Caribbean: Natura & Co (beauty), Suzano (pulp and paper). My two cents: I find this leaders’ ranking quite useful for understanding what ‘good’ practice in sustainability looks like, a goal post to aim for. The key issues also highlight what fellow practitioners globally, view as important sustainability issues. I must admit I was disheartened not to see social aspects of sustainability e.g. labour practices, health, human rights, inclusion, equity, social justice, etc. on the issues. Perhaps it seems obvious that climate, biodiversity, water, forests are inextricably linked to social/people and human wellbeing; or maybe social aspects are more pressing depending on the region/context you are in. It was great to see regional leaders also coming through – the more regional sustainability experts participate in this survey, the richer and more diverse this leader board can become. AFRICA: Young Africans & the African Union Agenda 2063 Young Africans below 30 years make up 70% of Africa’s population South of the Sahara, and the Africa Union’s Agenda 2063 aims to achieve an integrated, prosperous and peaceful continent for this majority and the generations after them. With numbers like these, young African need to have a say in Africa’s strategic direction. The AU’s Office of the Youth partnered with the Austrian National Youth Council to set up an African Youth Reference Committee of 25 young Africans and 15 European youth representatives. The AU Youth Envoy has been calling for more representation in key Agenda 2063 priorities e.g. Africa Continental Free Trade Area which will require young African participation and engagement to succeed. In early July 2023, the 25 member African Youth Reference Committee was announced with representation from all 5 regions of the continent. Over 2000 applications were received from young African creating change in their communities and solving for global inequalities. The Committee’s one-year mandate is to accelerate participation of young Africans in Africa’s development process, and foster global youth dialogue. In 2008, The AU Youth Charter (which categorises youth as between 15 – 35 years of age) came into effect. The Charter is a legal and political document that gives strategic direction on African youth empowerment and development at a nationally, regionally and as a continent (theyouthcafe.com). Most African countries have ratified (given consent to, made it officially valid) the Charter, while a few have not. My two cents: I always find proportion of African youth astounding, and it becomes baffling that, with these numbers, it’s not automatic that youth are a part of or actively involved in key decision-making processes – at government, business, and community levels. When one considers the AU Agenda 2063, and any future thinking and decision-making happening on the continent, surely it’s time for ideas like youth shadow boards, cabinets, etc. to come to life. KENYA: Kenya’s Sustainable Waste Management Act In late 2022, Kenya instituted sustainable waste management into law, this law becomes fully operational two years after it was instituted. This is a milestone achievement against pollution and for all Kenyans rights to a clean and healthy environment. Additionally, the law aims to spur economic opportunities in waste management, recycling and enable citizens’ behavior change. Rwanda, South Africa are already leading in this area. Although much about this law was highlighted in late 2022, as it now being operationalized and will soon be fully operationalized, it seemed worthwhile to highlight key aspects that individuals and organisations will need to put into place. NEMA (National Environment Management Authority) will lead in the standards and guidelines, enforcement, knowledge sharing on sustainable waste management. County governments are responsible for the devolved waste management function. Once guidelines are in place, house-hold waste segregation will be required by law. All entities (private, public) will also be required by law to segregate waste. Not doing so, will be illegal with fines and/or jail terms for non-compliance. Every household and all entities must transfer their segregated waste to licensed waste service providers. Private entities (as defined by NEMA) will be required to submit 3-year waste management plans, and annual reports on this. NEMA will have the mandate

SUSTAINABILITY TLDR NEWSLETTER: EDITION 13

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL: The Global Stocktake on Climate Action At the COP28 from 30th November to 12th December 2023, hosted by the UAE, the world will have its first-ever evaluation of our global response to our climate crisis. It’s the check point to see whether we are making progress, or not. But more importantly, it will be an opportunity to accelerate action by government, business, civil society and all stakeholders to get us all to limiting global temperature increase to 1.5 degrees. The March 2023 IPCC report, highlights that this decade is our chance to turn the tide “There is a rapidly closing window of opportunity to secure a liveable and sustainable future for all.” The Global Stocktake is a global review (not national) in line with the Paris Agreement to check: GHG emissions reduction to limit temperatures to ideally 1.5 degrees Building resilience to impacts Providing financial, technical and capacity building support for climate action And help inform countries on improving the national action plans (NDCs) for submission in 2025 The 2 year Global Stocktake involves 3 phases: 1) data collection, 2) technical assessment, and 3) consideration of outputs – which will happen at COP28. In Q3 2023, a synthesis report will be released to inform the global political discussions at COP28, and highlight where action is needed. The World Resource Institute (WRI) gives 5 areas we should hope for decisive action from COP28, which I capture as: Accelerating GHG emissions reduction – From the March 2023 IPCC report, it’s clear we are already off track big time. National climate action plans must be more ambitious. Change across sectors and systems – Transformative and large-scale action must happen with a focus on a just transition. Addressing adaptation and resilience – Gaps in adaptation finance, timely access to technical and capacity building assistance, and loss and damage need timely action out of COP28. Re-aligning finance and technical resources to climate action – finance and investment has to shift focus to address climate priorities Moving from promises to implementation – leadership, cooperation and equity will be put to the test at COP28 and onwards, we need less talk and more action. My two cents: I am looking forward to the September 2023 synthesis report to know where action is needed. By the year-end festive season, we will have a sense of whether our government and industry leaders are going to be the change we want to see in the world or not. For me, I prefer to know the answer (good or bad) than not; and hopefully I will pay more attention to the actions not than words towards our closing window of opportunity. AFRICA: Child Labour in Africa The Food and Agriculture Organisation (FAO) of the United Nations released insights in recognition of World Day Against Child Labour on 12th June 2023, that 82% of children in labour on this continent, work in agriculture. First off, what is child labour? According to the ILO, child labour is ‘work that deprives children of their childhood, their potential and their dignity, and that is harmful to physical and mental development.’ It’s work that is dangerous and harmful to a child, and the ILO explanation goes deeper into this. Almost 1 in 10 children worldwide are in child labour (approx. 218M children). Across all regions, agriculture has the highest portion of child labour worldwide. Although all labour isn’t hazardous, work in the agricultural sector tends to go beyond safety and wellbeing limits (FAO, 2023). Because sustainability in supply chains is becoming a critical issue for any business. All sustainability related guidelines, certifications, reporting standards will generally have child labour as a hard and definitive NO. It is worth bringing to your attention the Children’s Rights and Business Principles developed by UNICEF, UN Global Compact and Save the Children. These principles expect business action to respect and support children’s rights in their activities and business relationships. They also align to other various international conventions and guidelines set out to safeguard children; with the fundamental view that the child’s best interests are the primary consideration. Here are the 10 Children’s Rights & Business Principles. All business should: · Meet their responsibility to respect children’s rights and commit to supporting the human rights of children · Use marketing and advertising that respect and support children’s rights · Contribute to the elimination of child labour, including in all business activities and business relationships · Respect and support children’s rights in relation to the environment and to land acquisition and use · Provide decent work for young workers, parents and caregivers · Respect and support children’s rights in security arrangements · Ensure the protection and safety of children in all business activities and facilities · Help protect children affected by emergencies · Ensure that products and services are safe, and seek to protect children’s rights through them · Reinforce community and government efforts to protect and fulfill children’s rights The Children’s Rights and Business Principles provide comprehensive guidance on the actions businesses can take to embed all 10 Principles into policy, operations and business relationships. With 40% of Africans below 15 years old, children’s rights cannot and should not be ignored. My two cents: If children are our future, as suggested by singer Whitney Houston; as adults, we had better get a move on putting things in good order! KENYA: Africa Climate Summit Appoints a CEO In early June, President Ruto appointed Joseph Ng’ang’a CEO of the Africa Climate Summit (ACS) happening in Nairobi on 4th – 6th September 2023. The Africa

SUSTAINABILITY TLDR NEWSLETTER: EDITION 12

SUSTAINABILITY TLDR NEWSLETTER: EDITION 11

This newsletter gives you highlights of selected sustainability insights that were, perhaps, too long (you) didn’t read (TLDR) or there’s just too much out there to read. The highlights presented cover insights gleaned from a global, regional (African), and national (Kenyan) perspective. Happy reading! GLOBAL: IPCC Climate Change 2023 – 6th Assessment Report In March, the Intergovernmental Panel on Climate Change (IPCC) released its 6th report on the state of global climate change. This report will inform the Global Stocktake – the first critical review and inventory of the world’s actions on climate change as per the Paris Agreement; whether we are making progress or not, and identify the gaps and opportunities for the world’s people to turn the tide. The Stocktake will take place at COP 28 in Dubai, 30 November to 12 December 2023. The 6th IPCC report provides the latest scientific knowledge on climate change, its impacts and risks, and mitigation and adaptation as the reality of where we are. The biggest call out from the report is that “There is a rapidly closing window of opportunity to secure a liveable and sustainable future for all.” Here are some key highlights from this report: Human activities (mainly GHG emissions) has caused global warming with global average temperatures currently at 1.10 GHG emissions continue to increase from unsustainable energy use, land use and land use change, lifestyles and patterns of consumption and production across regions, between and within countries and among individuals. Widespread and rapid changes in the atmosphere, oceans, cryosphere (ice), and biosphere (ecosystems) have occurred. Climate change has reduced food security and affected water security. Approx. 3-6 billion people live in contexts highly vulnerable to climate change. Although adaptation planning and implementation progress is happening, gaps exist and will continue to grow given current rates of adaptation implementation. In some ecosystems and regions adaptation limits are being reached i.e. it’s getting too late to adapt. The existing policies and actions currently in place globally will exceed 1.50C and probably 2.00C in this century. Image: climateanalytics.org Global warming will continue to increase between 2021-2040 due to continued GHG emissions, and in this time frame we will exceed 1.50C – despite this, we must still take deep, rapid and sustained reduction (even if these actions don’t immediately give us feedback that they are working). Climate change impacts and risks will continue to will continue to increase in the near term (2021 – 2040), it will get worse before it gets better. Some climate change impacts are now unavoidableg. sea level rise of 0.15m-0.29m by 2050, and will remain this way for centuries to millennia. Changes will also be triggered when tipping points are reached e.g. by ecosystems, biodiversity and species loss. Image: IPCC report, 2023. The world must act decisively and rapidly – from governments, organisations and individuals – to address global warming and climate change. To limit warming to 1.50C or 2.00C requires rapid, deep and immediate GHG emissions reduction in all sectors in this decade (by 2030), with global net zero CO2 emissions by early 2050s (1.50C), early 2070s (2.00C). Prioritising equity and a just transition, finance, technology and international cooperation, governance and policies will be critical levers for the world to achieve a liveable future. Image: IPCC report, 2023 My two cents: It is said that when we know better, we do better. The report provides concrete areas for action. The report also highlights that personal must be taken in our behavioural and lifestyle choices – especially for middle and high income households (consumer choices), to reduce the emission-intensive consumption/production system. The decisions, choices and actions are in our hands. AFRICA: USA Vice President’s Africa Tour United States Vice President, Kamala Harris recently concluded her official Africa Tour – visiting Ghana, Tanzania, and Zambia). Geopolitics and the political economy are integral to sustainability and the sustainability challenges e.g. natural resources and biodiversity conservation, governance, (in)equality, etc. and these factors greatly influence policy and corporate decision-making and action. The VP’s Africa tour is a follow on from the US-Africa Leaders’ Summit and the US Strategy Towards Sub-Saharan Africa. Kamala Harris’ visit focused on 3 core areas: Digital inclusion – as a critical channel to economic empowerment and the digital economy. Economic empowerment of women – that will uplift women, and as a result their families and communities. Good governance and democracy – with the 3 countries visited viewed by the US as nations focused on this and fighting against corruption. On her visit, the VP also made key investment commitments to the continent, namely: Over USD 7 billion to climate resilience, adaptation and mitigation – in climate-smart agriculture, sustainability, clean energy and transportation, expanding access to climate information services, and enhancing climate resilience and adaptation Promoting regional security – with over USD 100 million committed for conflict prevention and stabalisation in Coastal West Africa Support to Ghana’s economic recovery and debt restructuring Strengthening economic development, regional integration Addressing shared health challenges Deepening US partnership with Tanzania Strengthening commercial engagement, democratic institutions and good governance, boosting health cooperation, and food security, energy and climate solutions in Zambia Economic empowerment for women with over USD 1 billion and a new Women in the Digital Economy Fund Interestingly, most of this committed US investment and support will be driven through partnerships with NGOs, social enterprises, and private-sector companies to deliver the impact and reach required. My two cents: This decade presents exciting (and challenging) opportunities for our continent. Strategic partnerships will be a vital avenue to channel investments, and deliver sustainability and responsible impact. These partnerships will need to include African enterprises and prioritise sustainable development prosperity for the continent’s people. Given where the continent is today, this wasn’t (always) the case before. KENYA: Kenya Strengthens Environmental Action Through the High Court The Kenyan judiciary is setting up a separate Environment division in the High Court. This division is being brought out of the