This was an interesting read “Four Facts About ESG Beliefs and Investor Portfolios“. In a part of the world where #esgInvesting and #esgreporting is still catching on, I suspect that Kenyan investors may not be analysing at their portfolios in terms of which stocks/shares come from companies with a clear #esgstrategy under their sustainability report. It is clear that financial performance of the company and their dividend policy still leads as the highest factor when choosing a company to invest in.

I am however surprised that in the first world countries from which the data in the article is from and where you expect the investors to have a greater moral and ethical consideration when choosing the stocks they invest in, it is still a lagging indicator. The number of retail investors making ESG investment related decisions is still sub-par and as well, the returns from ESG portfolios are not beating general inflation or GDP growth, but there is an expectation that the returns shall smoothen in the long run.

At Akira Consult, we look forward to reading the sustainability reports that shall be in the intergrated annual reports of the Kenyan listed companies now that the NSE ESG Disclosure guidance manual is in effect. We are curious to see whether the reporting shall influence investor sentiment in the short to mid-term or whether compliance on #esgreporting shall be just that, compliance which would be uninspiring.

Whatever the case, we at Akira Consult Ltd remain ready to help Companies identify their ‘why’ as regards #esg and which should align to their Corporate Vision and mission, embed it in their practices and in the end, tell an authentic story at your next reporting season.

You may reach us at enquiries@akiraconsult.ke.