SUSTAINABILITY TLDR NEWSLETTER: EDITION 32

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 World Happiness Report 2025

This is an annual report that looks at global wellbeing and how it can be improved. This report was first published in 2012, and this 2025 report focuses on the impact of caring and sharing in people’s lives.

The report considers life evaluations from over 140 countries (90%+ of the world’s population) drawing on data from the Gallup World Poll evaluating happiness based on six key variables: GDP per capita, social support, healthy life expectancy, freedom to make life choices, generosity, and perceptions of corruption. The World Happiness Report is based on one key question: Please imagine a ladder with steps numbered from 0 at the bottom to 10 at the top. The top of the ladder represents the best possible life for you and the bottom of the ladder represents the worst possible life for you. On which step of the ladder would you say you personally feel you stand at this time?

Here are some key insights for your consideration:

Scandanavian countries take the lead, with rises in happiness level in Central and Eastern Europe; and declines in the US and other high-income Western European countries. Countries in the continents of Africa South of the Saharan, ranked lowest linked to poverty, corruption and instability; while countries in Latin America scored well on social support and community life.
Generational differences in happiness, with older adults (60+years) expressing higher life satisfaction scores, than younger generations (below 30 years) with economic insecurity, social isolation and political instability being key factors contributing to unhappiness in younger generations.
Increased screen time on social media seems to create more unhappiness and impact mental health in younger people, particularly those in developed countries.
National policy should start integrating measures beyond GDP to assess societal success through measures that consider wellbeing and quality of life. National social protection provides an important safety net for social wellbeing.

Coming back to the focus of the 2025 report on caring and sharing impacting happiness; here are some useful pointers to explore as society and individuals:

We are happier when we believe people are kind – the report highlighted that we tend to be way more pessimistic about kindness in our societies, than the reality – we are much kind in real life!
Sharing meals with others makes us happier and supports our social connections. Countries where people share more meals, tend to display higher levels of social support, less loneliness and more positive reciprocity.
Unhappiness and social distrust are shaping societal values and political voting behavior e.g. in the US, Europe decline in happiness and social trusts helps explain the political polarization and rise in populism.
We are happier when we live with others, in a reasonable household size e.g. 4-5pax; but very large households and people living on their own seem to have lower happiness levels.
Strengthen social connections to support your wellbeing, this is especially vital for young adults.
Supporting and giving to others increases one’s sense of wellbeing e.g. donating, volunteering, giving-back/paying it forward; helping strangers, etc. and the important benefit of helping someone else. Society needs more prosocial behavior.

My two cents: This report highlights the importance of relationships and connections in our sense of wellbeing (on the inside and outside). More and more I’m reflecting on the ‘people’ pillar of sustainability; and I’m thinking that perhaps this is the one we need to get right, and then everything else will fall into place. Are we actually pursuing what really matters to us?

International Shipping Commits to Reducing GHG Emissions

In April, the International Maritime Organization (IMO) reached majority member agreement toward climate action in global shipping. Global shipping accounts for about 3% of global GHG emissions, and which are set to double by 2050. This agreement sets the stage for legally binding regulations targeting net-zero greenhouse gas (GHG) emissions from international shipping by or around 2050.

The framework introduces two key mechanisms:

Mandatory marine fuel standard – Ships must progressively reduce the GHG intensity of their fuel.
Global emissions pricing – Ships that exceed GHG thresholds must purchase remedial units, while low-emission ships earn credits or surplus units.

These regulations will apply to ocean-going ships over 5,000 gross tonnage, which contribute to 85% of international shipping emissions. Importantly, this agreement is the first global sector-wide emissions commitment that considers emissions limits and pricing covering majority of international shipping emissions. It also incentivizes innovation and new technology and considers transition for developing countries.

Additionally, a new IMO Net-Zero Fund will be set up to collect emissions-related revenues to: reward low-emission ships, support innovation and technology transfer, build capacity in developing countries, and mitigate impacts on vulnerable states.

The measures are set to be adopted formally in October 2025 and enter into force in 2027.

My two-cents: It gives me hope to see one of the world’s oldest industries committing to climate action, when newer ones seem to be doing the opposite. It’s also good to see incentive for innovation – perhaps this why it’s one of the oldest industries…they understand that times and context change and they make the effort to change collectively.

AFRICA

Nature-Based Solutions Are Resilience and Adaptation

The Africa Growing Resilience report published by World Resource Institute (WRI) and partners, assessed hundreds of Nature-based solutions on the continent showing the current state of play. The report outlines the growing threat of climate change on the continent, makes the case for private sector involvement and offers clear pathways to action.

Nature-based solutions are “actions to protect, sustainably manage, and restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.” (IUCN, 2016). They include actions such as: ecosystem services restoration e.g. restoring rivers; reforestation; agroforestry; wetland restoration; restoring mangroves; restoring coral reefs, restoring watershed forest restoration; establishing urban green spaces, etc. While nature-based solutions are vital for adaptation and resilience; they also provide over 30% of the mitigation needed in the next 5 years.

Here are some insights from the report:

While Africa is likely to be the continent most impacted by climate change, there’s significantly less investment in adaptation (dealing with the impacts) than in mitigation (reducing emissions). Most of the financing that has been available is from public sources; and not private sector.
About 80% of Africa’s GDP is generated from private sector, it is vital for private sector to manage their adaptation to these impacts and real risks. Adaptation offers over 200 billion investment opportunity mainly in agriculture, water, infrastructure, and finance sectors.
There is also an extensive gap in insurance, with only 3% of disasters insured on the continent.
Adaptation enabling tools will be vital to the continent’s resilience e.g. early warning systems, resilient infrastructure, and nature-based solutions.

On reviewing this report, here are a few recommendations that may be useful:

Private sectors need to include adaptation to their sustainability and climate change strategies, it is fool-hardy to imagine climate change will not significantly impact lives, operations and any future plans.
Partner with others e.g. conservation organisations and NGOs, government, etc. to develop credible projects that can receive investment and deliver adaptation and resilience results.
Explore blended finance to deliver adaptation and resilience projects to crowd in private investment.
Support SMEs, business partners and supply chains to improve their adaptation and resilience – as core to business operations; broken links destroy the entire chain.
Innovate for resilience and invest in climate risk and warning systems, it benefits everyone and every business.

My two-cents: Nature-related disasters from droughts, to floods, to pollution; are calling for urgent action, and we can no longer ignore it. It’s no longer just the responsibility of government, or humanitarian organisations; private sector and business leaders need to step up their action. It’s time to be proactive (anticipate, preparing and mitigating the impacts of it) and stop being reactive (panic and fix when the disaster happens).

KENYA

Central Bank of Kenya’s Climate Risk Disclosure Framework

In April, the Central Bank of Kenya (CBK) published Kenya’s Green Finance Taxonomy and Climate Risk Disclosure Framework. Both these tools were a requirement under the International Monetary Fund (IMF) structural reform commitments. It also builds on the 2021 Guidance on Climate-Related Risk Management issued by the CBK.

This edition we will take a look at the disclosure framework as it emphasizes the importance of climate-related disclosures required in IFRS 2; which the Institute of Certified Public Accountants of Kenya (ICPAK), Kenya’s statutory body that regulates accounting standards and the profession; designated as the official accounting standard for climate risk reporting. Additionally, this CBK disclosure framework strengthens the external expectation for capital flows towards climate action and so, ultimately, business decision-making.

Here are some key aspects of this disclosure framework:

Two types of climate risks: that banks must address, include, physical risks (e.g., floods, droughts) and transition risks (e.g., regulatory changes, technological shifts) that impact financial stability and credit portfolios.
IFRS S2 Alignment means climate-related risks, as well as opportunities, governance processes, and metrics, including Scope 1, 2, and 3 emissions. 
Phased approach for implementation: voluntary reporting begins in 2025, with mandatory reporting for all banks starting in 2027. Assurance of disclosures will be required by 2028, progressing from limited to reasonable assurance.
Build capacity within banks establishing governance structures, train staff, and develop climate risk management strategies to meet disclosure requirements aligned to Kenya’s climate goals.
Develop green finance opportunities: banks are encourage by the framework to develop green finance products, transition finance solutions, and sustainability-linked instruments to support clients in adapting to a low-carbon economy.

In adopting this framework Kenya’s banking industry is aligning to global standards on climate action but even more importantly, steering economic development, business products/services that will build a country better equipped for realities of today and the future that lies ahead.

My two-cents: I’m thrilled about this regulatory framework (and in a couple of years, requirement) on the banking industry to help re-design what business and the economy can look like at this stage of the country’s development. Maybe we might just have a shot at doing things differently rather than following the same pathway that has led to the climate and polycrisis ( ‘idea that not only are we facing one disaster after another, but those messes are all linked, making things even worse’) we face nationally and globally.