Sharp Daily
No Result
View All Result
Saturday, June 28, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

How pension funds are shaping the future of sustainable investing

Christine Akinyi by Christine Akinyi
September 14, 2024
in Investments
Reading Time: 2 mins read

In recent years, the investment landscape has undergone a profound transformation, with a growing focus on Environmental, Social, and Governance (ESG) factors. Pension funds, given their significant influence and long-term investment horizons, are uniquely positioned to drive this shift toward sustainable investing. In Kenya and across the globe, the role of pension funds in promoting ESG principles is critical, not only for achieving sustainable returns but also for fostering a more resilient and equitable economy.

ESG investing involves incorporating non-financial factors into investment decisions, focusing on the impact investments have on the environment, society, and governance structures. This approach aims to generate long-term financial returns while addressing pressing global challenges such as climate change, inequality, and corporate governance failures.

Pension funds are particularly well-suited to drive ESG investing due to their long-term investment horizons. These funds typically invest over decades to provide retirement benefits, making them ideal for focusing on sustainability and growth over time. Unlike short-term investors, pension funds can afford to prioritize sustainable investments that will benefit future generations.

Additionally, given the substantial assets managed by pension funds, they have significant market influence. This enables them to steer industries toward more sustainable practices by shifting capital toward ESG-compliant investments, especially in markets like Kenya, where pension funds play a key role in shaping investment trends.

RELATEDPOSTS

ESG investing: What it is and why it matters

May 2, 2025

The impact of ESG principles on investments in Kenya

January 14, 2025

To drive this shift, pension funds can begin by integrating ESG factors into their investment policies. This involves making sustainability a core criterion when evaluating potential investments across various asset classes. Clear ESG policies provide a structured approach to sustainable investing, guiding fund managers to prioritize investments that not only offer financial returns but also contribute to positive environmental, social, or governance outcomes.

  The shift toward ESG investing also requires better transparency and reporting. Pension funds can advocate for more comprehensive ESG disclosures by the companies they invest in, improving the availability of data and enabling more informed investment decisions.

Beyond advocating for better governance and transparency, pension funds have a unique opportunity to directly allocate capital toward sustainable projects. In Kenya, this could involve investing in renewable energy infrastructure, affordable housing, or green bonds, all of which support ESG goals while offering the potential for stable, long-term returns. These investments not only contribute to the country’s economic development but also address pressing environmental and social needs.

For pension funds to lead the shift toward ESG investing, they must proactively build internal capacity and develop a deep understanding of ESG principles. This may involve training investment teams, adopting new analytical tools, and engaging with global ESG experts.

Pension funds should also collaborate closely with regulators, industry bodies, and other stakeholders to foster an environment that supports ESG integration. Moreover, educating members about the benefits of ESG investing will help build support for sustainable strategies and demonstrate alignment with their values.

Previous Post

Changing job terms without consent is a breach of contract, Supreme Court rules

Next Post

Equity Bank crowned Africa’s top financial brand

Christine Akinyi

Christine Akinyi

Related Posts

Analysis

Kenya’s CIS market: Q1′ 2025 shows a surge, setting the stage for future expansion.

June 26, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
Analysis

Your First Investment should be an emergency fund with Cytonn Money Market Fund

June 16, 2025
Investments

Contrarian investing in Kenya.

June 13, 2025
Investments

Policies shaping Kenya-Tanzania energy collaboration

June 10, 2025
Investments

Navigating inflation and currency risks in African investments

June 10, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024