Corporations’ Climate Change Reporting: Taking a Hard Law Regulatory Approach in Kenya

Abstract

Climate change reporting has been adopted in a number of states across the globe. This study sought to examine the need for corporate climate change reporting stemming from the various effects of corporate activities on climate change. There is a worldwide realization that there is a need to invent mechanisms to avert the emerging climate change crisis, including climate change reporting. This study sought to establish the rigor of corporate climate change reporting regulatory framework. It examined the relevant statutory framework as well as the various policy framework on climate change. This study established that corporations have an onerous duty of undertaking climate change reporting which may be inefficient. However, the study established that grounding mandatory climate change reporting will spur compliance from companies and consequently promoting sustainable development. This study established that Kenya’s regulatory framework requires mandatory climate change reporting although it does not explicitly state that. This study also established that there is a gap on the modalities of climate change reporting. This study makes the following recommendations: Parliament should explicitly amend the Climate Change Act to state that climate change reporting by corporates is mandatory to avoid ambiguities; Regulations for minimum emissions requiring reporting by corporates should be established; The modalities for reporting including the technologies for measuring, the period of measurement, the limits of emissions should be established by NEMA; and the CMA should develop robust frameworks on climate change reporting by listed companies that effectively reduces the carbon footprints of listed companies.