By Rédaction Africa Links 24 with Daily Nation
Published on 2024-01-24 21:00:00
In the past, transaction and investment advisory in Kenya prioritized maximizing financial returns without much consideration for the environmental or social impact. Coal investments, deforestation-driven agriculture, and water-guzzling industries were pursued for their immediate financial benefits. However, the global perspective on investments has shifted, recognizing the need for positive change in the face of climate change, resource depletion, and social inequities.
A new narrative is emerging, focusing on investing in businesses that not only generate financial returns but also create positive environmental and social impact. This shift requires incorporating responsible and impactful financial decision-making, guided by environmental, social, and governance factors.
Kenya presents ample opportunities for impact investors, with climate-resilient infrastructures, renewable energy projects, sustainable agriculture initiatives, and innovative water management solutions. However, it is crucial to vet potential investments for their environmental footprint, community engagement, and responsible governance practices to ensure alignment with Vision 2030 and sustainability goals.
Advisors such as Finaltus play a vital role in helping investors navigate this landscape and identify high-impact ventures that align with their financial goals and societal values. The recent Africa Climate Summit demonstrated substantial commitments to sustainable investments in the sub-Saharan Africa region, indicating readiness for this shift. However, it is essential to uphold accountability by employing rigorous impact measurement methodologies and tracking environmental and social impact.
By prioritizing transparency and accountability, Kenya can bridge the gap between economic growth and environmental well-being. This requires a new breed of investors – those who seek profit with a purpose. In conclusion, sustainable investing is not just a trend but a fundamental shift in how we approach financial decisions in Kenya.
Mr. Kamau, a partner at Finaltus, emphasizes the importance of this shift in investment and transaction advisory practices.
Read the original article on Daily Nation
