By Eddah Waithaka
On August 27, the initiators of the prestigious Financial Reporting (FiRe) Award launched the 2024 edition of the FiRe Award, with a mission to advocate for integrated financial reporting practices that span both the private and public sectors, ultimately increasing accountability and transparency in the management of the nation’s resources.
The theme of this year’s Award centers on advocating for impactful sustainability reporting through the utilization of technology and innovation to bolster transparency. This highlights the increasing significance of sustainability disclosures in business operations, emphasizing their mandatory inclusion for both private enterprises and public sector organizations.
Speaking at the launch of the 23rd edition of the FiRe Award, Dr. Grace Kamau, CPA, who serves as both Chair of the Award Executive Committee and CEO of ICPAK, emphasized the critical importance of sustainability reporting in advancing sustainable development goals and promoting corporate accountability.
She emphasized that through the adoption of International Financial Reporting Standards (IFRS), with particular focus on IFRS S1 and S2, ICPAK is striving to provide guidelines and structures that will enable companies to competently monitor, control and disclose their sustainability impacts along with climate-related risks and prospects.
“Soon, we will release a communique to guide the market on the envisioned phases of adoption, assurance of sustainability reports, and disclosure of sustainability information while continuing to create awareness through curated workshops and roundtable events to ensure a just transition.”, stated Dr. Kamau.
Mr. Frank Mwiti, the Chief Executive of the NSE, also highlighted the NSE’s dedicated efforts to support and empower Kenyan companies to produce sustainability reports, thereby enhancing risk management capabilities and attracting more investment to certain companies.
“We strongly believe that private companies will be better placed to address growing stakeholder demands for transparency on how businesses manage their impacts to the environment, economy and people, ” Mwiti said.
In addition, Georgina Muchai, Acting CEO of PSASB, urged public sector organizations to increase their adoption of ESG reporting, recognizing the growing importance of ESG considerations among government regulators, investors and standard-setting bodies.
“Embracing ESG represents a significant opportunity for public sector entities to prepare for upcoming sustainability reporting regulations and to embrace transparency and accountability. This includes proactively gathering data to guide organizational strategy, mitigate risk, and drive improved, sustainable performance,” said Muchai.
The annual awards ceremony, typically held in December, requires both private and public sector organizations to provide detailed accounts of their environmental, social and governance (ESG) initiatives. This underscores their commitment to sustainable development and forms an integral part of their non-financial disclosure.
The FiRe Award is organized by the Institute of Certified Public Accountants of Kenya (ICPAK), the Public Sector Accounting Standards Board (PSASB), the Nairobi Securities Exchange (NSE), Capital Markets Authority (CMA), and the Retirement Benefits Authority (RBA).
