From Voluntary to Vital: Sustainability Reporting is Here to Stay

  • 9 Oct 2025
  • 2 Mins Read
  • 〜 by Jerusa Orina

There’s been a noticeable shift in how businesses across the region are now approaching sustainability. More companies are publishing sustainability reports, not as a branding exercise, but to demonstrate accountability, transparency, and create long-term value for their stakeholders. From banks to manufacturers, telecoms to energy companies, the sustainability conversation has moved from the horizon to meeting tables. The question then becomes, how does a company report credibly?

At its core, sustainability reporting is about demonstrating how a business creates value, not only financially but also socially and environmentally. It’s a way of conveying to the world, “Here’s how we’re managing the risks that matter and investing in what lasts.” For a long time, these disclosures were voluntary. However, global expectations are changing quickly, as are regional frameworks. Investors, regulators, and communities want to see evidence of impact that is sustainable and not just empty promises.

Across the region, more organisations are publishing structured sustainability reports, guided by global standards such as the Global Reporting Initiative (GRI) and the United Nations Sustainable Development Goals (SDGs). Now, new frameworks like the International Financial Reporting Standards (IFRS) S1 and S2 are setting the tone for the next generation of corporate transparency. These standards, which will be phased in for public-interest entities, ensure that sustainability disclosures are made with the same rigour and reliability as financial reports.

This means that sustainability will no longer appear on glossy pages or in company reports; instead, it will be reflected in the numbers, policies, and decisions that shape a company’s future. Businesses will need to demonstrate how climate change, social impact, and governance influence their performance and risk outlook. The core idea is simple: when companies disclose this information transparently, investors can make better decisions, and stakeholders can hold them accountable.

One notable example of this evolution is the 2024 KCB Group Sustainability Report. The report doesn’t just list projects; it tells a story of transformation. It demonstrates how the bank is embedding sustainability into its operations, from green financing and SME empowerment to gender inclusion and environmental stewardship. It shows that sustainability is not an extra, but a growth strategy that links purpose with performance. Reports like this raise the standard for what sustainability communication can be in East Africa: credible, data-supported, and future-oriented.

But beyond compliance and reputation, there’s a deeper reason why sustainability reporting matters. It builds trust. In an era when misinformation and greenwashing can erode public trust, transparency is a company’s strongest currency. When stakeholders see consistent, verified information about a company’s impacts, it strengthens their confidence in investing, collaborating, and advocating for that brand. Reporting also helps organisations look inward to identify gaps, measure progress, and plan better. The act of reporting itself is a tool for reflection and accountability.

The good news is that this transformation is already in progress. Regional regulators, industry bodies, and professional associations are encouraging companies to align with global disclosure frameworks, offering training and guidance to support a smooth transition. As these standards become embedded, the region’s corporate landscape is growing more comparable, transparent, and internationally competitive.

Ultimately, sustainability reporting is not just about fulfilling requirements; it’s about remaining relevant. The market rewards companies that think ahead, disclose transparently, and act responsibly. Those who start now are positioning themselves as leaders in a future where investors, customers, and employees expect more than just profit; they expect purpose.

In the coming years, the organisations that thrive will be those that report not because they have to, but because they understand that good business is sustainable business. Reporting simply makes that visible.