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
2025 Edelman Trust Barometer
Now in its 25th year, the global Edelman Trust Barometer assesses societies trust in its key institutions – government, media, business, and NGOs. Here are some key insights from the report:
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Globally trust in institutions is eroding, but business remains the most trusted institution at 62% and its perceived a competent and increasingly ethical. The institution of business is ahead of NGOs (58%) and the government and media are both at 52%, in societal trust.
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Society is aggrieved that government and business are serving narrow interests, the wealthy are benefitting and ordinary people are paying the price.
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Fears of discrimination are rising across countries and across demographics.
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Nearly 40% of those surveyed globally see hostile activism as a means to drive change, with 1 in 2 young adults in support of hostile activism. Less than 40% believe that things will be better for the next generation.
Despite these disconcerting results, there may be hope for business to really demonstrate institutional leadership:
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Society expects business to act with purpose and empathy e.g. 85% says it is business’ obligation to provide good jobs and retrain staff; and CEOs are expected to engage their businesses in societal challenges to rectify past harms, protect stakeholders and ultimately improve performance.
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Business has to collaborate with government, NGOs and media to re-build the social contract and address the root issues of inequality and grievance.
My two cents: This Edelman Trust report seems to have captured our collective concerns that our systems are failing, leaders aren’t leading or genuinely bothered, and society keeps trudging on.
A recent article in The Guardian captured this well: Systems are crumbling – but daily life continues. The dissonance is real. This article made me aware of the term ‘hypernormalisation’ – things are falling apart but we are acting like we don’t see it, because we can’t imagine how to get out of it. The ostrich is falsely accused of burying its head in the sand to avoid what it doesn’t want to see; the truth is, it doesn’t.
AFRICA
Africa’s Pulse, Spring 2025 Edition
This World Bank bi-annual publication, is an extensive report on Africa, South of the Sahara’s, economic development trends. Here are some highlights nuanced towards sustainability related considerations, to give a sense of how +40 countries are trending:
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Across Sub-Saharan Africa, real per capita income remains below 2015 levels; but GDP will grow by 4.3% by 2026–27, up from 3.3% GDP growth in 2024 to 3.5% in 2025.
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Debt servicing, which stands at about 50% of government revenue, is restraining investments in critical services like health and education.
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The social contract between governments and citizens continues to weaken due to governance weaknesses e.g. corruption, poor performance, inequality in public service delivery, and this is driving public discontent.
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Climate impacts are diverting 9% of national budgets to response; and 2% of GDP is being lost annually.
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Conflicts across the continent have displaced millions of people, and acute hunger affects 120 million Africans, 80% of them in conflict zones.
It’s imperative that business starts to take a concerted role in the continent’s sustainable development, for example:
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Country-specific risks remain high and so business opportunities remain volatile.
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Managing climate risks and conflict, socio-politics risks, emergency and disaster planning and response are becoming a business reality and can no longer be ignored.
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Aligning business models and market opportunities to development priorities, will help to secure markets and society.
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Business has to take a stronger role in governance reform, social protection, and shaping Africa’s competitive advantage for development that benefits Africa’s people.
My two-cents: There’s urgent need for a mindset shift for those in positions of leadership to lead. I often look up the meaning of the word leader; and I now prefer to say a person in a leadership position; because I no longer take for granted that the person in the role actually is the kind of leader with the set of mindset and behaviours needed in leaders for the reality times we are in and we face. There’s a quote that goes something like this: One who thinks they are leading and has no one following them is only taking a walk.
KENYA
Central Bank of Kenya’s Green Finance Taxonomy
In our previous TLDR we covered the Central Bank of Kenya’s Climate Risk Disclosure Framework, so in this edition we wanted to highlight the Green Finance Taxonomy that was also published by the CBK in April 2025. Both these tools (the green finance taxonomy and the climate risk disclosure framework) were a requirement under the International Monetary Fund (IMF) structural reform commitments.
Kenya, like many countries across the continent, is highly vulnerable to climate change, and its impacts will not only threaten life and livelihoods, it will inevitably impact the economy as well. According to the World Bank, the Kenyan people would lose about 7.25% of GDP by 2050 because of climate change impacts.
Enter the Green Finance Taxonomy which seeks to identify economic activities that are environmentally sustainable (what a green investment actually is and is not), and helps the financial sector to channel investment towards businesses and projects that are environmentally responsible and resilient.
The taxonomy provides a 7-step process that aligns to Kenya’s revamped commitments to the Paris Agreement (Kenya’s NDCs – Nationally Determined Contributions) and requires that, green investments:
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Contribute significantly to climate change mitigation or adaptation.
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Do not cause major harm to other environmental objectives.
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Meet minimum social sustainability safeguards e.g. labour laws and human rights standards.
The taxonomy covers key sectors: energy, agriculture, water, construction, and others.
On 30th April 2025, the government met its deadline by publishing, the country’s new NDCs commitments which included raising the emissions reduction ambition from 32% to 35% by 2035, and a commitment to locally finance 20% of its climate action; while 80% will be from other sources e.g. climate finance, technology transfer, carbon markets and capacity building.
My two-cents: This taxonomy will be a useful guide to businesses on the types of investments that can secure financing and funding, build investor confidence and deliver measurable climate action impact. Let’s see now if Kenyan businesses will catch on.