ESG certifications rise on brands’ sustainability race
At Mr Green Africa's (MGA) compound along Mombasa Road, piles of plastic, neatly sorted and bundled for processing, dominate the parking area, underscoring the environmental challenge the company tackles.
Keiran Smith, MGA's Group CEO, leads us through the facility’s activities, highlighting their mission to reduce virgin plastics manufacture through integrated recycling.
Plastics, notably beverage bottles, at various processing stages, are regenerated and sold to companies like Unilever and TotalEnergies.
Workers are busy at various stages. They are responsible for the entire process from when MGA collects waste to when it is resold as high-quality Post-Consumer Recyclate, a substitute for imported virgin plastics.
MGA, he explains, integrates informal waste workers, micro-entrepreneurs and consumers into its formal value chain to address plastic pollution, providing collection safety and segregation training. This is crucial in Nairobi, where daily waste production exceeds 2,400 tonnes- a fifth of it plastic.
What stands out most for MGA is its B Corp certification- a testament to its commitment to sustainable business practices. As Africa's first Certified B Corporation recycling company, Kieran explains that MGA’s certification is a benchmark that drives the company to continuously improve its business practices.
What is B Corp Certification?
MGA’s certification attracts and retains talent and appeals to mission-aligned investors by fostering trust and serving as tangible commitment proof.
To maintain its B Corp certification, Kieran explains, MGA focuses on core sustainability initiatives such as worker inclusion, fair prices for its suppliers, transparency throughout its supply chain and actively improving the environment.
B Corp Certification, bestowed by B Lab, signifies that a business is not solely focused on maximising profit, but is equally dedicated to positively impacting society and environment.
"To attain B Corp certification, companies must score 80 or above on the B Impact Assessment- a digital tool that can help measure, manage, and improve positive impact performance for the environment, communities, customers, suppliers, employees and shareholders," explains B Lab's Elizabeth Mutwiri.
The Standards Advisory Council- an independent group with expertise in responsible and sustainable business practices, upholds the criteria and standards of this assessment. The certification process varies based on a company's size and complexity. B Corp-certified businesses must recertify every three years.
Stacks of collected plastic waste at Mr Green Africa factory in Nairobi on September 19, 2023. PHOTO | BILLY OGADA | NMG
The B Corp Certification represents a shift from profit-driven models to a holistic approach that addresses society's most pressing issues.
Challenges and criticisms
Obtaining B Corp certification can be both lengthy and intricate. Companies must navigate the comprehensive B Impact Assessment, which scrutinises their impact across various social and environmental dimensions. Achieving the required scores can pose a significant challenge and preparation for and maintenance of B Corp certification may entail substantial costs and time investments.
However, these challenges underline the need for accessible support structures, enabling businesses of all sizes to embrace the B Corp journey and its enduring rewards.
“Identify what contributes positively to the environment and communities and integrate it into your operations. B Corp certification shows it's attainable and essential,” explains Kieran.
Feedback
Leaders from certified companies say B Corp’s transcends mere recognition and catalyses meaningful organisational change.
Sriram Bharatam, co-founder of Kuza Biashara Ltd, says the B Corp certification helped his firm discover its unique space. "It gave us a sense of belonging and purpose," he says.
Essam AlMaddah, former HR Director and General Secretary at Danone Egypt, highlights the meticulous assessment tools used to evaluate performance, noting that they guided Danone Egypt towards operational enhancements aligned with B Corp standards.
Keiran Smith, CEO of Mr Green Africa, during an interview at the company's factory in Nairobi on September 19, 2023. PHOTO | BILLY OGADA | NMG
For Alain Sarr, Human Resources Director of La Laiterie du Berger: "This certification is not mere recognition but a commitment to a more responsible and sustainable future."
Juliet Kennedy, Founder & CMO of Greenspoon, stated: "The B Corp movement's ambition to reshape how businesses operate is one of the most powerful ways we can positively influence the planet."
Roseanne Masila, Chief Operations Officer of 4G Capital, called the certification a guiding light that grows businesses’ impact and helps firms maintain focus on building a business for good.
ESG experts agree that Kenyan businesses are taking on new responsibilities beyond financial gain. Giving Safaricom, Absa and Acorn as examples, Nasra Nanda, CEO of ESG Lead Kenya Green, stresses that ESG principles help companies access funding and sustainable financing.
Raymond Obare, Principal ESG Adviser at Impact Africa Consulting, underscores the ESG ecosystem's importance as both a risk and an opportunity for businesses. He notes that driven by informed consumers, over 10 Nairobi Stock Exchange-listed companies now embrace ESG. BY BUSINESS DAILY
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