Following the release of the roadmap for the adoption of IFRS Sustainability Financial Reporting Standards in Kenya, the new IFRS Sustainability Standards, IFRS S1 (General Requirements for Disclosure of Sustainability-Related Financial Information sustainable development) and IFRS S2 (Climate-related financial information), have officially become an integral part. of the country’s sustainable development reporting landscape.

The roadmap provides the timeline for the mandatory adoption of the standards for different categories of organizations, with the earliest date being January 1, 2027.

It also provides a timeline for mandatory insurance by an independent external insurance provider, with the earliest date being January 1, 2028.

Therefore, organizations must begin to prepare to embed sustainability within their organization by understanding the sustainability risks, opportunities and impact that affect them while reporting on the results.

The roadmap requires organizations to conduct readiness assessments, which involves assessing different aspects of an organization’s readiness to comply with the reporting requirements of the standards. Some of the factors to consider for preparation are:

Investment in capacity building: It is worth emphasizing the importance of raising awareness and making employees understand what sustainability means for an organization and the reporting obligations associated with it. This is an important starting point because it creates a springboard for other programs related to the organization’s adoption of the standard.

For example, through training programs, the board and senior management can understand their role and begin to implement policies and processes that will ensure accountability across the reporting function.

Data strategy: Sustainability reporting relies heavily on a lot of data. Therefore, organizations will need to develop the right data strategy that helps identify the required data, data warehousing, analysis and delivery to ensure a business-as-usual setup that enables continuous reporting throughout. the year and not just during the year. END.

Insurance preparation: Organizations must first develop internal audit functions and capabilities to ensure that information related to substitutability is reliable, accurate and decision-useful. Investing in the right people, systems and data technologies is critical to delivering a robust assurance process that adds value.

Other areas to consider are risk management, stakeholder engagement and the preparation of sustainability disclosure reports.

Akinyemi Awodumila is a partner at Deloitte East Africa. He is an author who writes and speaks widely on topics related to corporate reporting.