SUSTAINABILITY TLDR NEWSLETTER: EDITION 10
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 Edelman Trust Barometer Edelman PR published their 23rd annual Trust Barometer which assesses societies’ trust in its institutions – government, business, the media, and NGOs. The survey covers 28 countries giving a global perspective. The survey highlights that 2023 is steeped in polarization resulting from: Economic anxiety – majority of countries believe their families will be worse off in 5 years from now Institutional imbalance – business is now seen as the only ethical and competent institution Mass class divide – income inequality is creating different realities in trusting institutions Battle for truth – media institutions are not trusted, and trust in social media is particularly low Globally, peoples’ personal anxieties e.g. job loss, inflation now include existential fears – climate change, nuclear war, food and energy shortages. Across the board, government and media are increasingly being seen as fueling distrust and as sources of misleading information, while business and NGO leaders and teachers are seen as more trustworthy. Citizens of Argentina, Colombia, the US, South Africa, Spain, and Sweden believe their countries are extremely divided and doubt these divisions can be overcome. Citizens in Nigeria, Thailand, The Netherlands, Kenya, Canada, Australia and Ireland believe their countries have deep divisions yet hope this can be overcome. Polarisation is being inflamed by distrust in government and media, lack of shared identity, systemic unfairness, economic pessimism, and societal fears. As a result, lack of civility and mutual respect is at the worst levels people have ever seen. The report highlights that societies globally expect business to lead, and people want business to: Engage more in solving societal challengesg. climate change, income inequality, energy shortages, healthcare access, skilling, etc. Advocate for truth and be a unifier of societyg. through their brands; especially as employers are now the most trustworthy source of information Collaborate with government on policies and standards for a more just, secure and thriving society My two cents: This is a perception survey, so one can question the results – although it is often said that perception is reality. It’s clear that the opportunity is there for business leadership that focuses on uplifting society. After all, a fragile, fragmented society means a fragile, fragmented business reality – employees, customers. Business is wholly dependent on society. UN Global Compact-Accenture CEO Study This 12th CEO study draws insights from +2500 CEOs with +130 in-depth interviews, across 18 industries and 128 countries. In the study CEOs land the points that: The world is completely off track in meeting the SDGs and Paris Agreement by 2030 – this will be cataclysmic. Yet today, CEOs are already dealing with 10 or more global challenges in the business (e.g. inflation, price instability, talent scarcity, public health, climate change, warfare and conflict, etc.) so business as usual no more. The role of CEOs is changing as expectations change and the S (social) in ESG is redefining business’ role. Like it or not, global challenges are interlinked and are exacerbating one another e.g. food-water-energy nexus, biodiversity loss and health, etc Sustainability is now the only way to build a truly resilient company, and 98% of CEOs believe it’s their role to make their business more sustainable. Customers, governments, investors and employees are the top influencing stakeholders for CEOs over the next 5 years; while raw materials and supply chain disruptions are the top business impacts from the global challenges. On an optimistic note, the global challenges are accelerating the green transition and industries are transitioning albeit at different rates led by energy and automotive industries. The Study presented 4 key ingredients for building resilience: strategy, workforce, supply chains, and ecosystems management (see diagram above). CEOs also highlighted that policy makers had to do their part too, in establishing a transparent, equitable and actionable playing field; and without this collaboration and involvement of civil society/NGOs there is no hope for meaningful progress. The report then provides industry specific insights spotlighting each industries: 1) most pressing challenges 2) current landscape 3) where the industry is going. Industries covered in these insights are: agriculture, automotive, chemicals, communications & media, materials & construction, energy, financial services, health & life sciences, high tech, industrial, natural resources, software & platforms, support services, travel, and utilities. My two-cents: We are off track and business leaders need to set up (they said it themselves!). If your industry is covered in the specific insights take a look, they may give you clarity on what to prioritise – there’s no need to reinvent the wheel…just yet. AFRICA: AU Summit 2023 This year’s African Union Summit focused on accelerating the Africa Continental Free Trade Agreement (AfCFTA) operationalization – the world’s largest free trade area in participating countries. The Agreement entered into force on 30 May 2019 and trading started on 1st January 2021. Intra-African trade stands at about 14% and the AfCFTA could boost this to 33% and cut the continent’s trade deficit by 51% (UNCTAD, 2021). The EU is Africa’s largest trade partner, and Africa-Asia trade is at +21%. The AfCTA will eliminate 90% of tariffs on goods and reduce trade barriers in services. 44 African member states are parties to the ratified agreement, and key areas to be operationalized are: Finalising the legal basis for implementing the agreement’s phases 1 and 2 Guided Trade Initiative – connect business and products for import/export between interested states Adjustment Fund – support member states and private sector to participate in the new Agreement’s trade environment Pan African Payments System – centralized Financial Markets Instruments to allow the follow of money across borders Private sector strategy – engaging private sector for an inclusive approach in implementation e-Tariff book – launched in late 2022, providing easily accessible concessions
SUSTAINABILITY TLDR NEWSLETTER: EDITION 9
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: World Economic Forum’s Global Risk Report 2023 The 2023 WEF report was release in a global context of socio-economic risk and geopolitical tensions. The world is focused on ‘survival’ of today’s issues: cost of living, social and political polarization, food and energy supplies, tepid growth, geopolitical confrontation, and others according to Saadia Zahidi, MD of the report. Over 1,200 experts contribute to the report, which highlights critical points and risks that needed to be considered worldwide towards a new direction for a resilient sustainable world. The visual below summarises the key risks the world faces collectively: Cost of living was highlighted as the key risk for the next two years, and the coming decade will be about environmental and social risks. The report also highlighted that a new economic era is afoot – with the potential for more disparity between rich and poor; and the decline of human development for the first time in decades. Additionally, geopolitical instability will exacerbate risks in both the short and long term. My two cents: These are the times that we live in – and we know it. Although it will be inevitable that we focus on the short term risks, the long term risks (and they are already shouting out for attention) cannot be ignored. It is a balance of both. Because the risks can be (and are) real, preparedness and partnership across stakeholders will be essential for finding solutions for and dealing with these risks ahead. Will we start to understand that we are stronger together than we are apart? World Resources Institute’s Stories to Watch 2023 The 20th annual feature from WRI shared hopeful news for 2023 towards a more sustainable future. Things often look so bleak, so here are four exciting developments to keep an eye on this year: Green energy transition continues growing globally – In 2022, green energy grew 8% and many see the global energy crisis as a positive spur towards renewable energy growth. Separately last year, Francesco La Camera of the International Renewable Energy Agency even said that “Renewables are by far the cheapest form of power today.” Global commitment to conserve 30% of the world’s nature by 2030 – The world’s countries/leaders made a commitment to protect 30% of Earth’s lands, oceans, coastal areas, inland waters by 2030. This agreement was reached at the UN Biodiversity Conference held in December 2022. Loss and Damage fund for a just transition – This was a big deal at COP 27 for developing countries (+80% of world’s population). The fund is to provide financial assistance to countries most vulnerable and impacted by the effects of climate change. The fund is a while away from being operational, but the agreement is a positive step in global dialogue and cooperation on the realities of climate change. The USA’s just economic transition – last year the US passed climate legislation to support a low carbon, climate-friendly economy and society. These legislations will invest into the US economy annually creating jobs, boosting the economy and reaching underserved communities. For example, the Inflation Reduction Act will cut US emissions by 30-40% below 2005 levels by 2030. My two-cents: It makes sense to focus on solutions, on the positive – find this news does give me hope. Perhaps too much energy, time goes into focusing on the negative; rather than what is being done and can be done. A change in perspective for 2023. AFRICA: Foresight Africa’s Top Priorities for the Continent in 2023 This hefty publication is produced by the Africa Growth Initiative, Brookings Institute. The report highlights that global shocks e.g. Russia’s war in Ukraine, global inflation, and C-19 will continue to impact the continent this year, yet Africa is resilient. The Economic Intelligence Unit predicts the continent’s growth by 3.2% this year, primarily driven by mid-size economies – Senegal, Cote d’Ivoire, Democratic Republic of Congo, and Kenya which are estimated to grow by 5-7% in 2023. The report presents advise for policy makers – which is insightful for business/private sector as well: Increase domestic revenue and spend more efficiently – Africa’s average tax to GDP is lower than other regions at 16.5%. Asia Pacific is 19.1%, Latin America & the Caribbean 21.9%, and OECD countries5%. Expanding tax resources e.g. from real estate, the sugar industry, and carbon are opportunities, and moving away from large scale generalized subsidies to targeted ones e.g. for technology, social protection programmes, infrastructure, research and development are far more efficient for government spending. There are also opportunities to leverage commodity windfalls and develop local and regional financial markets anchored in savings. Enable African entrepreneurship – policy makers need to formalize their domestic private sector with fair, transparent and stable regulatory regimes. Policy makers should also enable private sector to close gaps in energy, infrastructure and digital infrastructure. Uplift Africa’s youth – investing in youth is fundamental. Countries need to address the learning crisis by strengthening education systems. Providing jobs by leveraging TVET programmes and apprenticeships in partnership with private sector to meet labour market skills is critical. High fertility rates – tackling the continent’s high fertility rate which increase household consumption and reduce investment per capita in human capital needs to be addressed. Family planning, keeping girls in education, and women’s participation in the labour force will be key strategies for this. Accelerate the AfCFTA – building intra-regional trade, connectivity and markets is critical to the continent’s deglobalisation, resilience and prosperity. Invest in Africa’s renewable and green energy mineral deposits – global demand for these resources is growing rapidly. Policy makers must have clear strategies to develop these resources and investments, including value-addition strategies for local benefit. Revenue management of these resources to
SUSTAINABILITY TLDR NEWSLETTER: EDITION 8
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: COP 27 – What needs solutions and action The ongoing 27th UN Climate Conference (COP27) in Egypt will shape humanity’s future (for better or worse). It’s two weeks of talks (6th – 17th November), and here’s a summary of priorities, by the World Resource Institute, I found useful on what to look out for when the speeches, discussions, negotiations draw to a close: Financing for loss and damage: all developing countries (G77 and China) asked for this to be on the agenda. Developed countries aren’t keen to discuss this, nor set aside funds. Developing countries saying that developed countries need to set money aside for damage and loss related to climate change. It’s a contentious issue and can be a deal-breaker of global collective action on climate change. More adaptation support: A recent IPCC report emphasized that adaptation needs to happen faster and are more scale than previous thought to help vulnerable countries and people. Today, less global financing is allocated to adaptation than mitigation (adaptation is 1/3 of mitigation finance). Global pledges towards adaptation made in 2019, are 71% short of the USD 40 billion commitment. Strengthen national emissions targets: The State of Climate Action 2022, warns that the window to limit global warming to 1.5oC is closing; and even if existing 2030 commitments are delivered, these commitments will get us to 2.40C – 2.80C. Take a look at what this temperature means for humanity and our planet. Lock commitments to USD 100 Billion annual climate finance: this commitment was made in 2009 to developing countries to support their climate action – it’s never been met. Glasgow COP26: Pledges from COP 26 need to turn into concert action e.g. halt, reverse deforestation, restrain methane emissions, phase out coal, align the finance sector to net zero, among others. At present these are still only words. Global stock-take on climate action 2023: Next year, our global progress on climate action will be release at COP28 in the UAE. COP27 is key to shaping the vision for COP28. My two cents: This is disconcerting. Perhaps our hope lies with humanity/people and communities instead. Either way, I’m adding survival skills, first aid and disaster response trainings to the new skills I need to equip myself with. AFRICA: The US Strategy Toward Sub-Saharan Africa The Biden-Harris administration has a new approach towards Africa south of the Sahara which ‘reframes the region’s importance to US national security interests.’ (p.4, US Strategy Toward Sub-Saharan Africa). From a US-strategic context, Africa: Will have ¼ of the world’s population by 2050 Has vast natural resourcesg. 30% critical minerals the power the modern world, the world’s 2nd largest rain forest, after the Amazon rainforest (Congo rainforest). Is situated along major sea lines of communication and trade. Represents the largest global voting block (28%) in the UN and other multilateral institutions and Africans head several of the most important global institutions e.g. WHO and WTO. The region also holds 3 non-permanent seats on the UN Security Council. And its AfCTA will be the world’s 5th largest economy. Is critical to the US and its allies from a political, economic and security perspective. While China sees the region as an arena to challenge rules-based international order, advance its narrow interests and weaken US relations on the continent. Additionally, Russia sees the region as an accepting environment for private military, fomenting instability for Russia’s financial and strategic benefit. The 5-year strategy (published August 2022), has 4 objectives to advance US priorities with regional partners: Foster Openess and Open Societies: US interest is to ensure the region remains open and accessible to all, making the region more inclined to work with the US. The US will aim to increase transparency, accountability, freedom of press, fight digital authoritarianism, counter corruption and support reform. They will support independent judiciaries, electoral process and mitigate illegal constitutional change. Assist African countries to leverage their natural resources for sustainable development and global open, reliable supply chains. Deliver Democratic and Security Dividends: US aims to stem authoritarianism, military takeover and work with the African Union on democratic performance. The US will back civil society to build vibrant democracies and leverage diplomatic, development programmes and defense tools to respond to drivers of conflict. They will also prioritise counter-terrorism to protect the US, its people and facilities be it unilaterally (where relevant) or in partnership with key allies. Advance Pandemic Recovery and Economic Opportunity: US support for the region’s equitable recovery will be essential in regaining Africa’s trust in US global leadership, US trade and investment and creating US and African jobs. They will prioritise efforts to address the C-19 pandemic, health security and building capacity to tackling infectious diseases. On economy, the US will promote stronger growth and debt sustainability for the region’s economic recovery, rebuild human capital and food systems weakened by C-19 and the Ukraine war. Support Conservation, Climate Adaptation and a Just Energy Transition: the US will use its influence, development assistance and finance to help the region adapt, build resilience to climate impacts and promote mitigation strategies for a sustainable and low-carbon future. They will partner with governments, civil society and local communities to conserve, manage and protect the continent’s rich natural eco-systems, as well as combat wildlife trafficking and illegal fishing. The US will work with countries to pursue energy access and economic development through technology and harness US and African private sector investment for energy transition and economic development; as well as work with governments to respond and scale adaptive capacity. They will also pursue public-private partnership to develop and secure critical minerals needed for global energy transition – this includes countries enacting reforms in mining to allow for
SUSTAINABILITY TLDR NEWSLETTER: EDITION 7
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: Halfway to the SDGs – How are we doing globally? The Goalkeeper Report 2022 was recently published by the Bill & Melinda Gates Foundation – it’s an annual report that keeps track on global progress to achieving the SDGs by 2030. 7 years in, and globally we are not on track to achieve any Goal. Yet, in 2015 who would have been able to anticipate the C-19 pandemic and its impacts, the wars in Yemen, Ukraine; or the gripping hold pulling womens’ rights back in the US, Afghanistan, Iran; all these and others have set back progress on the Global Goals. But there’s hope! And that is humanity’s ingenuity. The report selects two key problems 1) Food security 2) Gender equality as key levers, game changers in demonstrating human ingenuity to solve large scale/SDG issues. Gender Equality Crises affect women and girls significantly more – and as a result, today women and girls are worse off than before. This is because they have always and still been most affected by inequality – especially economic. Despite efforts to empower women (skills, jobs, cash, etc) the fundamental issue remains that women are not gaining power, decision-making, agency in their families and communities e.g. ‘the difference between having money – and being able to spend it.’ (Goalkeepers, 2022). Here’s how human ingenuity can shift the tide: Enabling digital money/financial tools directly to women is now giving them more opportunity to spend, invest, save; than if they were given cash. For women to have full economic power, real caregiving infrastructure has to be in place. If affordable childcare is made available to women, they can better contribute to their family’s income, and the economy. A study on 3 countries (Kenya, Nigeria, South Africa) showed that when governments provide better childcare policies, funding and infrastructure; about 15 million women would be able to enter the labour market. (Kidogo – an example of low-income, affordable childcare in East Africa). When women have control over their money – their children are more likely to attend school, families are healthier, income grow. Food Security First of what is food security? ‘Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life” (World Food Summit, 1996). Russia’s war in Ukraine is showing us how fragile and disproportionate food security is across the world. The issue is: ‘Where it is easy to produce food, and where it isn’t.’ (Goalkeepers, 2022). African nations don’t produce enough to feed themselves domestically – so most import. The challenge here are conditions for farmers labour e.g. size of farm land, farm inputs, financing, changing weather /climate change. Globally less is spent on agricultural research (USD 9Bn) than on food aid (USD 57Bn) – this shows that globally, we are being reactive, rather than proactive when it comes to a basic survival need. But here is how human ingenuity is creating hope: AI (artificial intelligence) predictive modeling in agriculture is helping to map out what farms need to look like in the future – what will be optimal to grow and where; and also establishing early warning systems on disease outbreaks speeding up preventive action. Traditional food crops (UNU-IRNA, 2022) and hybrid seeds are paving the ways to food security in a climate changing world. Supporting farmers to modernize food production for domestic needs will also be critical. My two-cents: Gender equality: women are 50% of the global population, and the same split in most countries. This means that nearly half of the population is unable to help build their families, communities, countries. Is sustainable development really a glass half full/glass half empty coin toss? Food security: domestic food security should be a priority for every country (and especially African countries), clearly it hasn’t been. Surely there was logic to why it is SDG 2: No Hunger. Hopefully, all national leaders now recognize the importance of food security (sadly, it took a crisis). All Profits to Help Planet Earth – Patagonia’s Visionary Leadership Patagonia, the global outdoor clothing company, directs all profits to fighting climate change and helping our Earth. In the words of the owner, Yvon Chouinard, “Earth is now our only shareholder.” An outdoor enthusiast, the founder built one of the world’s leading sportswear brands. With his family and a team of team of lawyers, they created a structure that allows for Patagonia to continue operating as a company, the money Patagonia makes – after reinvesting in the business, will all go to fighting and solving the global environmental crisis. Patagonia’s value from nature (their sportswear brand) will now be reinvested into nature’s value. Patagonia has been a global sustainability leader for decades, and once again show us what vision in leadership looks like. My two cents: I found this inspiring – so I put it here. Who knows, a family business, an entrepreneur, a shareholder, an investor, an individual reader might find this inspiring too. AFRICA: Africa’s Youth Speak The African Youth Survey 2022, shares very interesting and cautionary insights from our youth (18-24 years) across 15 countries. Respondents were also 50:50 gender ratio, 40% were students and 44% had completed secondary education. This is 2nd annual report produced by South Africa’s Ichikowitz Family Foundation. Here are the key insights from the report: (less) Optimism – as the year before, Africa’s youth remain optimistic, but only 30% think their own country is on track, and nearly half feel negative and uncertain about the future. C-19 – this is the generation most impact by the Pandemic! Majority appreciated their national responses to the Pandemic, but they hesitate to take
SUSTAINABILITY TLDR NEWSLETTER: EDITION 6
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: World Population Hit 8 Billion in 2022 In November 2022, the world’s population will reach 8 billion people the UN announced in July. In all regions, there’s been improvement in life expectancy and falling fertility in the past decades. Developing countries have growing populations while some of the world’s richest countries are experiencing population decline. While the poorest countries worry about how to meet the needs of their growing populations, the richest countries are keen to raise fertility rates. Countries with ageing populations are worried about labor/skills shortages, slow economic growth and lower productivity, cultural and ethical shifts in their societies; and weaker political and military power. There are 3 key principles to demographic change: fertility, life expectancy, and net migration. On fertility, globally millions of women don’t have the right, access or ability to choose whether to have children or how many. In terms of life expectancy, its generally the accepted goal that everyone should live longer. For migration, well it’s too often such a complex and sensitive for policymakers to discuss – the narrative and fears of waves of migrants are often louder than the reality, which is about 2-4% of people actually live outside their country. Demographic change is a mega-trend for sustainable development and achieving the SDGs. More people means higher production and greater consumption, increased pressure on the natural environment; and probably exacerbating climate change and inequalities. There are 3 proposed solutions to handling population growth: Using population data to plan ahead – countries need to use population data (numbers, age structures, spatial distribution, etc) to understand current and future needs of their populations for development strategies. Establish resilient societies and institutions – countries ought to create economic and social systems that meet the needs of their populations; and not the other way round – populations meeting the needs of the systems. Drive people-centred population polices – policies that empower people on their reproductive aspirations and choices, rather than hinder those choices. At the end of the day, it is the household that bears the responsibility of population (growth or decline) and meeting their needs. My two-cents: Demographic change will remain topical and a mega-trend for decades to come. There is no silver bullet and its unrealistic to expect or try to determine an ideal population size. In my view, its critical that women have the right, choice and agency for their bodies and the responsibilities having children brings. And yes, women’s partners can definitely weigh in on the discussion. At the end of the day, population boils down to a woman, a couple, a family deciding on children – then you can aggregate that to get to national population. AFRICA: The AU’s Climate Change Plan 2022-2023 Africa’s economies rely heavily on climate-sensitive sectors e.g. agriculture, tourism/hospitality, energy, blue economy, etc. The 55 countries that the African Union represents are willing to do their part in the global response to Climate Change. This plan is the continental strategic framework for action and cooperation to address Climate Change, improve livelihoods, boost adaptation, and low-emission and sustainable economic growth in the next 10 years. We have summarized this strategic framework for you with this diagram: My two-cents: It is important for Africa to have a common and shared approach to climate change – we go farther when we work together. This will be particularly relevant at the November 2022 COP 27 in Egypt, for Africa to own its voice and seat at the global table. KENYA: The President-Elect’s Manifesto & the Environment Now that the Supreme Court has made its ruling, The President-Elect will be the 5th President of the Republic of Kenya. The insights presented here are adapted from an article by Greenpeace Africa’s Claire Nasike. Here’s a summary, on what I have gleaned, on the President-Elect’s manifesto priorities and commitments related to the environment: Agriculture: affordable working capital to farmers, crop and livestock insurance and commodity market instruments, increased productivity of subsistence and export crops including revamping and expanding exported crops; boosting water management practices; providing financing and technical extension support. Environment: tackling deforestation and air pollution, enhancing agroforestry, modernize wood fuel, promoting circular economy in solid waste management particularly plastics. Climate Change: was referenced but there didn’t seem to be clear plans related to adaptation and mitigation. The manifesto didn’t seem to highlight: wildlife conservation, water pollution, toxic pesticides, preserving indigenous seeds or smallholder farming diversification. There’s obviously much more presented in the manifesto and summaries abound – like this article from The Africa Report. And, of course you can read the full manifesto and gauge it for yourself. My two-cents: Like every Kenyan, we hope for development that will meet the needs of current generations without compromising the ability of future generations to meet their own needs – leadership, is key for this.
SUSTAINABILITY TLDR NEWSLETTER: EDITION 5
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: EY report – ENOUGH (is enough!). EY published a report about corporate sustainability and those committed to the corporate sustainability movement. It is an insightful read into how corporate sustainability and the professionals in this field are resilient, adaptable, and innovative; but are actually ring-fenced from actually doing what needs to be done – help companies transform before it’s too late. Companies aren’t helping themselves address sustainability effectively. Instead sustainability professionals: in a company are small in number and function compared to the magnitude of change and impact they are supposed to deliver (set up to fail?) spend most of their time convincing and re-convincing leaders of the business case (shouldn’t this be evident to leaders by now, or it is that leaders have massive cognitive dissonance?) are in one function/department and sustainability for the company is not the ‘job’ of all professionals in the company (so how serious are companies, really?) The private sector is the most economically powerful and environmentally impactful bloc on the planet. Corporate sustainability is about survival of our biosphere (all living beings), yet companies have set themselves up to fail. This began way before when students learned about economics and management theory and the false concept that a company is a machine (not an organism) and that it operates independently of the planet and society. After centuries of putting this in practice, enter the hot mess we are in today – environmentally, socially and economically. So what is a sustainable company? The report calls out that: economic activity must stay within sustainable limits. know your environmental and social limits across the entire value chain. (Think about the Planetary boundaries, Kate Bosworth’s The Doughnut). industry value chain impact should use planetary boundaries so it is clear how an industry is impacts which ecosystems sustainability is the culture and values of the organization, not the remit of the sustainability function sustainability professionals holding themselves to higher codes, refusing mediocrity and half measures, and seeking strength in their collective. It is on us to create the movement and drive change. My two-cents: This quote from the report says it all: ‘But now that the world is 20 years away from global catastrophe, the worst thing corporate sustainability can do, is mask the extent of the problem’. EU Combats Greenwashing The EU is worried about companies greenwashing their sustainability credentials to look more responsible than they actually are to attract investors/money. The European Securities & Markets Authority establish criteria for national authorities to supervise investment funds with sustainability features. ESG investments funds globally outperformed non-ESG share portfolios during the peak of C-19 (Blackrock, 2020), globally ESG investing grow double in size 2020-2021. ESG funds account for 10% of global assets, nearly 60% of this money managed from Europe and ESG funds will grow to over 30% globally by 2025; (Reuters, 2021, Bloomberg, 2021). My two cents: The SDG investment opportunity is estimated at USD12 trillion in four areas: food and agriculture, cities, energy and materials, health and wellbeing (BCSD, 2017) – with most of the opportunity in emerging markets. Some food for thought on your investment decisions. AFRICA Universal access to energy for all Africans is possible The latest International Energy Agency report on Africa’s energy is optimistic about the continent’s energy future (we are doing better than we think). It presents the pathway in which African countries can achieve universal access to modern energy by 2030. Today 43% of Africans lack access to electricity. Ghana, Kenya and Rwanda, are on track towards universal access to modern energy for all by 2030. These countries are doing this by extending national grids, building mini-grids and standalone systems, mainly solar, which are most viable for rural and remote areas. The report presents an exciting energy future driven by home-grown renewable energy solutions and industry. It highlights: energy efficiency in infrastructure, price affordability, building codes and standards, green manufacturing and efficient technologies. electricity will underpin our development with solar leading the way leveraging geothermal renewable energy generation oil and gas producing countries to start looking more at this industry meeting their own domestic needs in the short term the continent also holds 40% of global reserves of critical minerals needed for renewable technologies this renewables trajectory will mean our overall contribution to greenhouse gas emissions will remain minimal The report also reminds Africans that we must not forget, climate change adaptation – Africans will be the most impacted by climate change. Financing for a just transition, is still the elephant in the room. My two-cents: I am reminded that at last the under-development of +50 countries is now a strength, a blessing and a teachable moment on how development should’ve be done – inclusively, respectfully. Kenya Kenya’s Sustainable Energy Summit KenGen and partners recently hosted a summit, the first of its kind to raise discussion on sustainable energy and home grown solutions for Kenya and Africa’s energy challenges. Kenya is already a global and African leader in renewable energy. With +80% energy from renewable sources. At independence, Kenya used thermal power reliant on coal (which was imported). In the mid-1980s the thermal infrastructure has reached its limits, and although hydropower was now an energy source it was in low supply. 1980s – early 2000s energy supply and access was the lowest ever. Kenya introduced geothermal energy in the early 2000s – before renewables were ‘in’. With this shift, In less than 10 years the country has moved from 35% of Kenyans with access to electricity to nearly 80% of Kenyans. (Sustainable Energy Summit, 2022) KenGen is the first and only state agency to commit to the UN’s Business Ambition for 1.50C, a global coalition of business leaders, governments and NGOs, to
SUSTAINABILITY TLDR NEWSLETTER: EDITION 4
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: European Union common phone charger law European union member states have agreed that by 2024 all smartphones and tablets sold in the EU must have a common standard charger (USB Type-C port) that can be used across any device…yes, even Apple! This EU decision has been decades in the making, and finally regulators took it on after companies refused to reach a common solution through voluntary/self-regulation. Switching to USB Type C port is estimated to ‘..save up to 250 million euros a year on unnecessary charger purchases’ in the EU. My two-cents: this is positive for consumers and markets everywhere. Russia’s war in Ukraine hitting us all Russia’s war has been raging for the past three months. For most peoples of the world, the war seems far away, but it is having significant global repercussions. Here are 6 highlights from reports by McKinsey and the United Nations, on how the war is impacting all of us, globally: Disruption of the global food production system – both Russia and Ukraine produce 30% of global wheat and barley exports, 65% of sunflower seed oil, 20% of corn/maize, 1/3 of ammonia and potassium used in fertilizer. Food importing nations are greatly affected especially if they don’t have long term fixed price contracts. 25 Africa countries, 25 Asian countries and 19 Latin America and the Caribbean face severe exposure to food, energy and financial shocks (UN, 2022). Global value chains are shifting from just in time, to ‘just in case’ inventory, and diversifying their supply sources Countries are committing to spend more of their budgets on defense, especially across the Europe and the US, and other countries and continents may follow. Corporate leaders are no longer neutral – about 70% of wester companies have pulled out or scaled back their Russia-based operations. It’s no longer just investors driving decision-making. Global inflation is at a decade high, central banks are increasing interest rates, and debt servicing costs will be higher My two-cents: It’s a grim outlook. Tighten your purse strings, belts, food budgets, and lifestyle comforts. It may be a good time to re-define and differentiate between your needs vs wants. Maslow’s Hierarchy of Needs could be a good reminder of what motivates our lives. GLOBAL: Africa will rise – in the next half-century Experts at the recent World Economic Forum, believe that only less than 2% of Africans will live in extreme poverty by 2060 – currently about 40% of Africans living in extreme poverty. That is great news! But it is also nearly 40 years away! It will take African leaders and governments prioritizing fundamental health and social conditions that will secure livelihoods and life expectancy. It will require a focus on education, and fostering a culture of responsible leadership. Digital skills and technology will be key to empowering African youth, and African countries will need to amplify entrepreneurship, self-employment for sustainable development. Although Africa will rise – how the countries address Climate Change (adaptation and mitigation) will greatly impact the ability to rise. My two-cents: The work has to start now for us to get there! Can we get there sooner?! GLOBAL: New role for Uhuru Kenyatta as a Climate Champion The Global Centre on Adaptation (GCA) welcomed President Uhuru Kenyatta as a champion for Africa Adaptation Acceleration Programme (AAAP). The AAAP is a joint initiative between the African Development Bank (AfDB) and (GCA) to mobilise global commitments on climate financing for Africa. International climate finance is needed for Africa’s climate-resilient development – and this development is essential if the world is to the needle on the climate crisis for the future. As a country, Kenya was at the fore of the SDGs architecture at the United Nations, and recently the global treaty on plastic pollution reached at UNEP HQ, Nairobi. My two-cents: It’s too early to have a view – the appointment was on May 22nd. But I do know that climate financing will be critical for Africa’s just transition. “Africa will also not be able to finance the scale of the investments needed without a dramatic step up in international effort.” Says Amar Bhattacharya, Senior Fellow – Global Economy and Development, Center for Sustainable Development, Brookings Institute.
SUSTAINABILITY TLDR NEWSLETTER: EDITION 3
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 2022 – Mitigation of Climate Change This 3rd report of 2022 by the Intergovernmental Panel on Climate Change focuses on the scientific, technological, environmental, economic, and social aspects of mitigation. Key highlights from the report are: Globally, human-caused greenhouse gas emissions (GHG) continue to rise, with CO2 (fuel combustion, industrial processes, land use change, forestry) being the highest; followed by Methane (emitted from production and transportation of coal, natural gas, and oil. Also from livestock and agricultural practices, land use, and decay of organic waste in solid landfills). Regionally, North America, Australia, Japan, New Zealand, Middle East have the highest production and consumption emissions per person. While Africa and Southern Asia have the least. In the last decade, unit costs of solar energy, wind energy, lithium-ion batteries have decreased; and their use has significantly increased – more so in developed countries, than in developing countries. This positive transition in developed countries has been driven by innovation policy packages. An assessment of country commitments to reduce GHG emissions (Nationally Determined Contributions – NDCs) made prior to November 2021, show that it is likely that global warming will exceed 1.50C and it will be harder after 2030 to limit warming below 20 Simply put, what countries are committing is not enough. All countries urgently need to: pursue renewable energy for electrification; accelerate sustainable construction and buildings; shift to more efficient, climate-smart transport modes e.g. EVs; transition to sustainable agriculture and forestry. But perhaps the biggest opportunity for us all lies in individual behavior change – every single individual needs to start taking action to reduce their own carbon footprints… that means taking a hard and honest look at one’s lifestyle patterns to reduce carbon use. My two-cents: Lifestyle v/s Mother Earth, this is the silent and most vital war of our 21st Century. Re-skilling Revolution – Tomorrow’s Skills, Learned Today The job market and world of work are changing rapidly. We are all reflecting on the skills we have and the future, perhaps asking whether we have skills needed to succeed. Sometimes we are asking for ourselves, often times for our children, the next generation. According to the World Economic Forum, more than 1 billion people need to be reskilled by 2020 primarily due to technology. According to Accenture, trillions of dollars of GDP growth will be at risk by 2030 if we do not meet the skills demand for the new technology era. As you continue to contemplate your opportunities, but perhaps more importantly, those of your next generation consider that: care (healthcare), engineering and cloud computing; sales, marketing and content; data & AI; green jobs; people and culture; and specialized project managers will be the demand professions of the future (WEF, 2020). A McKinsey report highlights that foundational skills all citizens will need are: ability to add value beyond what can be automated; operate in a digital environment; adapt to new ways of working and occupations (McKinsey, WEF, 2021). The WEF diagram below shows the top 10 work skills critical for tomorrow: My two-cents: Traditional jobs, and jobs for life will probably cease to exist. When you know what’s coming, you know how to prepare. Time to re-skill. Anticipate the future. After all, the future is created today. AFRICA: SDG/Sustainability Bonds Gaining Momentum in Africa In late April 2022, NMB Bank in Tanzania launched Sub Saharan Africa’s first social impact gender based bond, Jasiri Bond. This social impact bond, listed on the Dar es Salaam stock exchange, is raising funds to address gender equality (SDG 10) and inequalities (SDG 10). At closing, the bond had +1600 applications valued at TZ Sh 74.3 billion, it initially sought to raise TZ Sh 25bn. women. Over 50% of subscribers were women. The bond will provide financing to women led businesses. Across the continent, other countries have issued SDG/sustainability bonds e.g. Nigeria was the first African country to issue a sovereign green bond, Ghana issue a USD 1 billion sustainable bond to broaden education, and Seychelles launched the world’s first sovereign blue bond to support sustainable marine and fisheries projects raising USD 15M. My two-cents: Innovative finance is essential for Africa in meeting its annual SDG financing gap, pegged at USD 200 billion (UNCTAD, 2020). We cannot solve problems with the same thinking that created them. The financial sector has a critical role in innovating financing to support Africans and Africa. By the way, if you have a pension or an investment, do you know if you are investing responsibly and/or investing in Africa? The Story of Business in Africa The Business in Africa Narrative Report, based on research by Africa No Filter, and AKAS, presents a stark picture of how international and regional media tell the story of business in Africa. It’s a comprehensive study: + 700M stories analyzed from 2017-2021; +6000 new sites across the 54 countries, and +180,000 new sites outside Africa. The sad revelation is that both international and regional media negatively frame the impact of business in Africa. Some highlights from the report were: 70% of international media when talking about business in Africa refer to foreign countries – China, France, UK, Russia. Typically, only South Africa and Nigeria feature in international news about business in Africa. Africa has the most entrepreneurs than any other regional globally – yet this is not highlighted. African creativity and our creative industries are barely featured, including Nollywood, the world’s 2nd largest film industry. Instead media focus only on technology. Africa has the highest number of women business owners in the world (Mastercard Index) and the youngest population globally; yet women and youth are under-represented on average. Both international and regional media prefer to cover government policy and regulation
SUSTAINABILITY TLDR NEWSLETTER: EDITION 2
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 2022 – Impact, Adaptation and Vulnerability. Summary for Policymakers This report by the Intergovernmental Panel on Climate Chane was published in late February 2022. It highlights the interdependence of climate, ecosystems and biodiversity, and human societies. Here are some (unfortunate but need-to-know) highlights from the report: There us a greater than 50% likelihood that global warming will reach or exceed 1.50C by 2040 (13 years from now). Human-induced climate change has already: Altered ecosystem structures in across the globe, in all regions, continents Caused species range to shift on all continents and regions Altered changes in cyclical and seasonal patterns for climate, plant and animal life Climate change has already resulted in: Increasing water scarcity, reducing crop production and food security. Increasing human health and wellbeing impacts such as rise in infectious diseases, malnutrition, and displacement/migration. It is also impacting cities, settlements and infrastructure with increase flooding, damage to coastal areas, infrastructure and damage in key economic sectors. Today, approximately half the world’s people live in environments highly vulnerable to climate change; as human and ecosystem vulnerability are interdependent. Between now and 2040, even if we take the necessary actions to reduce and mitigate global warming, the impacts of the damage that has already done will still be experienced. This means that we will have to trust the process – take the urgent action needed to change our societies and economies, even though the results of these actions won’t be evidenced until after some years. Earth’s feedback system won’t happen in a flash (like our human minds think). So we must trust that we will get to the results we need to… trust the process. To adapt to climate change, the report highlights that it is vital we look at: Forest conservation, protection and restoration; Agroforestry, and biodiversity and ecosystem connectivity Green infrastructure and ecosystem services Resilient power systems, and energy reliability Disaster risk management, and climate services e.g. early warning systems To achieve adaptation, our global, regional and national financial systems, governance, institutional and policy systems must adapt quickly to overcome the range of constraints these systems present to timely and relevant action. Worldwide climate resilient development action is more urgent now than previously assessed. My two-cents: In your organisations, it is vital that climate change risk and mitigating climate change are priority agendas for the next decade. In your own personal lives, you also need to act e.g. grow trees, reduce your energy use, car pool, save water, start your own vegetable garden, eat less meat, don’t waste anything, etc. Every individual action will make a difference. If not you, then who? Proposed Directive of the EU Parliament and Council on Corporate Sustainability Due Diligence In late February 2022, the European Commission adopted a proposal for a Directive on corporate sustainability due diligence for EU and EU-based companies. The proposal aims to foster corporate respect for human rights and the environment throughout global value chains. This proposal is critical as about 80-90% of environmental harm of EU products may occur in value chains located outside the European Union. The directive aims to: Improve corporate governance integration of risk management and mitigation processes of human rights and environmental risks and impact including those from value chains Avoid fragmentation of due diligence requirements Increase corporate accountability for adverse impacts Improve access to remedy for those affected by adverse human rights and environmental impact of corporate behavior This directive highlights that despite efforts of voluntary action by companies, it has not resulted in large scale improvement, and as a result the negative externalities from EU production and consumption are being felt inside and outside the EU. My two-cents: The EU is taking a leading role in demanding accountability and action from companies on their social and environmental risks and impacts, not just in the EU, but wherever they have operations and value chains (globally). The ‘looseness’ of regulation, due diligence and accountability in developing countries and their fragile institutions is being buffered – climate change and inequality affects everyone, eventually. If/when adopted EU Member States will have two years to transpose the Directive into national law. AFRICA: Africa’s mRNA Vaccine Hubs Egypt, Kenya, Nigeria, Senegal, South Africa and Tunisia will receive the technology to produce mRNA vaccines for the African continents – its +50 countries. C-19 vaccines are the priority, but in time – depending on their own (or African) capacity and resources, these countries will also be able to produce other vaccines for the region’s public health needs. mRNA technology is the latest technology in vaccine development. It involves a type of molecule with the ability to deliver specific instructions to cells, teaching the cells to create a harmless piece of a protein belonging to a specific virus. This then triggers the immune system to make antibodies to destroy and attack the virus protein when you are actually infected with the virus. Although the technology has been around since the 1990s it’s first use in vaccines was with C-19 i.e. Pfizer-BioNTech and Moderna vaccines. African Union Adopts Kiswahili as an Official Language In February 2022, AU Heads of State approved Kiswahili as an official language of the bloc. Before adding Kiswahili, the AU and its institutions official languages were: Arabic, English, French, Portuguese, Spanish and any other Africa language…. (the dots are here intentionally). The African continent is the most linguistically diverse continent with over 1500 languages. Kiswahili was proposed as an official AU language in the early 2000s but the proposal did not succeed at that time. Thanks to Tanzania’s Vice President, Philip Mpango, and his request; an African language is finally an official language for the very first time. Kiswahili is currently spoken by +100 million Africans making it
SUSTAINABILITY TLDR NEWSLETTER: EDITION 1
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: World Economic Forum (WEF) – The Global Risks Report 2022 Every year (17 editions) the WEF publishes its global risks reports that present global risks as perceived by world leaders in business government, civil society, and risk experts. The report’s risks are across five categories: economic, environmental, geopolitical, societal, and technological. Here are selected highlights from the report, I have opted to highlight the top 5 risks selected from the global risks perception survey Risks that got worse since the pandemic (COVID-19 Hindsight): Social Cohesion Erosion Livelihood Crises Climate Action Failure Mental Health Deterioration Extreme Weather When will risks become a critical threat to the world Global Risks Horizon): 0 – 2 years 2 – 5 years 5 – 10 years Extreme Weather Climate Action Failure Climate Action Failure Livelihoods Crises Extreme Weather Extreme Weather Climate Action Failure Social Cohesion Erosion Biodiversity Loss Social Cohesion Erosion Livelihoods Crises Natural Resource Crises Infectious Diseases Debt Crises Human Environmental Damage Most potentially damaging risks (Global Risks Horizon): Climate Action Failure Extreme Weather Biodiversity Loss Livelihood Crises Social Cohesion Erosion My Two-Cents: From this WEF report, it is evident that environmental and societal risks are at the for of all risks for the next decade. As you deliberate on and deliver your sustainability-related strategies and actions for the year and the next decade; environmental protection and conservation; livelihood resilience; social cohesion and inclusivity may need to be top of your list. REGIONAL – AFRICA Foresight Africa – Top priorities for the Continent in 2022 Published by the Brookings Institute in Washington D.C, this annual report proposes priorities and recommendations for Africa from experts on the region and in their field. Here are some insights from the report’s priorities: The nature of African societies perceives that working hard is what gets you ahead economically – African people believe in meritocracy – and want to pass on this value (of working hard ) to our children (Henn, S. 2021). Being cosmopolitan is in our DNA! We grow up and thrive within endless different cultures, religions, languages, and histories – which makes African people naturally inclusive e.g “The word ‘stranger’ and ‘guest’ are the same in most African languages” Africans believe in their future because they believe in the talents and character of their people, rather than the continent’s natural resources. Majority of African households rely mostly on wood and charcoal as their main cooking fuel. Women make up half of Africa’s population, will Africa reach its development potential if half of its population is lagging behind? For once, Africa’s underdevelopment is the greatest opportunity for better: development led by renewable energy, and more environmentally smart societies and economies. The fact is, if Africa doesn’t succeed in this, the entire world/entire planet won’t succeed in climate action (Africa holds the key) The continent must invest in ICT and technology infrastructure; and prepare our young workforce for new technologies – to avoid increasing the gap between Africa and other continents. The private sector has to be a key player in this partnering with government (private-public partnerships) to drive the continent’s technology into the future. This included data governance and digital diplomacy. Lastly, blockchain technology are the future and regulators should focus on how to develop this technology, rather than hinder – the blockchain train has already left the station, and is too late to stop it. The continent’s external relations have to focus on enabling its own people and its own private sector. Africans want alternative development partners from China and the US (Afrobarometer, 2021). Old and new partners abound e.g India with opportunities for healthcare and pharma, the UK with a reset in relations to focus on renewables and support to the AfCFTA, Russia seeking elite-based and not state-based relationships (Foresight Africa, p. 117), the Gulf seeking partnerships for their food security and economic diversification, among others. African countries must move towards the ‘Africa We Want’ from the Africa they want. My Two-Cents: The African continent has countless challenges, but challenges are also opportunities. Opportunities for solutions that are business and market-based, profitable and impact-driven. How we see it as a choice: the glass is either half-full or half-empty. Global Compact Africa Strategy 2021-2023 The Global Compact is the world’s largest sustainability initiative. It is a platform for businesses to learn, dialogue, and partner on sustainability on the Global Compacts Ten Principles (in human rights, labor, the environment, and anti-corruption) and the SDGs. In 2021 Global Compact launched a new Africa Strategy. From their regional network councils (5 in total) Africa’s is the smallest. But this is soon to change. The Africa strategy will: Prioritise Africa’s largest economic centers and companies to drive impact. Include all companies and sectors – particularly SMEs, which are 90% of Africa’s businesses, employ two-thirds of the formal workforce, and are 40% of Africa’s GDP Leverage business associations, supply chains, and financial institutions for eco-system transformation The Global Compact has prioritized leading with business on the following SGDs: SGD 5 – Gender Equality, SGD 8 – Descent Work and Economic Growth, SGD 13 – Climate Action, SGD 16 – Peace, Justice & Strong Institutions, SDG 17 – Partnerships for the Goals. The Global Compact is a platform to learn, dialogue, and partner. My Two-Cents: Global Compact has been instrumental in driving and championing corporate sustainability in other regions like Europe, Asia, and Latin America, it’s time for the movement to do the same in Africa. Sustainability (The GC’s Ten Principles and the SDGs) requires us to work together – no one individual, company, or stakeholder can solve them alone. NATIONAL: KENYA Nairobi Bus Rapid Transport Network Goes Electric The Nairobi Metropolitan Area Transport Authority, NAMATA, is looking to buy or lease electric, hybrid, and biodiesel