The Business Case for Climate Change: The Impact of Climate Change on Kenya’s Public Listed Companies

Abstract

Purpose

The purpose of this study was to investigate the trends of climate change and their impact on businesses in Kenya’s Public Listed Companies (PLCs).

Design/methodology/approach

Out of 66 PLCs, the researchers interviewed 10 companies, and therefore obtained a 15% sample. The methodology was utilization of both primary and secondary data and by use of a combination of the structured and unstructured interviews.

Findings

The findings indicated that, although climate change issues are mentioned or implied in strategic plans and core values, they rarely however, translate to normal or day-to-day conversation or operation of the businesses. PESTEL factors are cited as having a very positive impact on businesses that are technological and economic, contrary to environmental/climate change factors which have a more negative than positive effect on the business. Electricity outages/shortages will have serious impact, while agricultural, tourism, insurance, and aviation sectors are likely to be most severely affected by climate change. The hypothesis that climate change is affecting all businesses was accepted while that stating that climate change is significantly impacting businesses negatively rather than positively by increasing operating costs which may result to closure if not mitigated by 2030 was rejected.

Practical implications

Companies should not adopt a “business as usual” attitude but invest in training on effects and strategies for mitigation as well as adaptation and translate climate issues into action as well as create synergy in tackling climate change issues.

Originality/value

The research is valuable to environmentalists, meteorologists, business community, academicians, as well as scientists and scholars alike both nationally and internationally.

Citation

Kihiko, M.K. and Kinoti, M.W. (2016), "The Business Case for Climate Change: The Impact of Climate Change on Kenya’s Public Listed Companies", Climate Change and the 2030 Corporate Agenda for Sustainable Development (Advances in Sustainability and Environmental Justice, Vol. 19), Emerald Group Publishing Limited, Leeds, pp. 133-157. https://doi.org/10.1108/S2051-503020160000019007