POLICE SACCO EMBRACES ESG TO BOOST ITS EXPANSION DRIVE

Tier one Sacco on course to shape a greener future while meeting evolving financial needs of its members

In the wake of  the   climate change phenomenon  that  has  made planet Earth to  wake up from her slumber,  many  organizations   are adopting environmental,  social,  governance (ESG) practices to mitigate the myriad   risks brought by global warming.  In the local scene,  Kenya Police DT Sacco is among the first Saccos to commit comprehensively to ESG initiatives.

The tier one Sacco has adopted a robust ESG proposition to ensure its  long term success  by turning ESG pillars into change agents and catalyst of risk management. ESG is a key dimension that has evolved from a nice-to-have to a must process for organizations  looking to have an impactful contribution to the society at large. In response to this, Kenya Police DT Sacco has enacted a corporate sustainability programme  that creates long term value while addressing environmental, social and financial needs within the scope it operates. The  main  goal   is to  enable  these   systems   to  exist   sustainably   by  embracing   strong governance.

Environmental sustainability

Environmental sustainability guarantees an ecological balance that conserves natural resources which in turn support the well-being of not only the current generation but also posterity. Environmental conservation is one of the pillars that the Sacco has been keen on.

To align itself in this key pillar, Kenya National Police DT Sacco has taken steps to help reduce effects of climate change by adopting various  green initiatives. In 2023 for instance,  the Sacco planted over ten thousand trees at the Directorate of Criminal Investigation (DCI) headquarters in Nairobi in a campaign dubbed ‘10,000+ trees for climate change.’ This was  in a   bid to compliment the government’s ambitious goal of planting 15 billion trees by 2032.

Climate action

In the same year ( 20230 , the Sacco invested over Kshs. 16 million on solar energy installation as well as uninterrupted power supply (UPS) system. This investment will go a long way to generate green and clean energy, hence  helping  the Sacco to   reduce its energy costs. Further, at the headquarters, the Sacco has installed sensor motion detectors at the common areas, basements and lavatories to reduce energy consumption when the areas are not in use.

These are some of the measures the Sacco is putting in place towards getting Edge Certification to ensure  that  its  headquarters   ( Police Sacco Plaza)  is a fully green building by  the   end of 2024. Buildings with Edge certifications  have complied with Edge green buildings standard which entail energy efficiency, water conservation and efficiency use of resources. In a  nutshell,   they are  climate smart buildings.

On the waste management front, the Sacco has embarked on measures to segment waste. In effect, it has contracted a firm to ensure the environment within and surrounding its headquarters is clean. Internally, the Sacco has sought to sensitize its staff on use of recyclable materials.

To cater for its staff as well as members visiting the  Police Sacco Plaza, the Sacco has three reserve tanks to ensure that  it   has consistent supply of clean water. The reserve tanks have the  capacity to store enough water for a week’s operation. In addition, water saving taps have also been installed to avoid risks of unintended flow.

Green financing stands as the cornerstone of the Sacco’s ongoing initiatives. The Sacco is committed to integrating   environmental sustainability into its financial activities. By channeling funds towards eco-friendly projects, the Sacco is not just aligning with global sustainability goals but also catalyzing positive change within our community. These projects underscore  the Sacco’s   commitment    to  fostering innovation  and   attracting socially responsible members,  while ensuring  its   long term resilience.

Social governance

The assessment of how an institution interacts with people around it is one of the key factors in understanding ESG risks and opportunities.  To  that  end,   Kenya National Police DT Sacco is committed to providing   inspiring leadership  that    embrace    diversity, equality and maintain a healthy culture.

In promoting gender inclusion, the Sacco has a workforce comprising 60 percent male and 40 percent female staff. In its quest for expansion, the board has approved   an addition of staff members   through  a   competitive recruitment process. Similarly, the work environment has been enhanced in line with the requirements of occupational, safety and health standards.

The Sacco has put in place a mechanism to ensure its workforce gets necessary training and exposure through capacity building programmes. For example, in 2023, the Sacco managed to train 89 percent of its workforce.

Corporate governance

Effective   governance plays a crucial role in the long term success of any member-owned society. As such, the Sacco has set policies to embed efficiency and transparency in its functional structures. For instance most of the Sacco’s processes are digitized to avoid manual interference. Additionally, the Sacco has put up a whistle blowing mechanism to help flag bad practices. As best practice, the Sacco has complied with the  2010 Constitution of Kenya,  the  2015  Public Procurement and Asset Disposal Act, 2015, as  well as   other relevant laws to ensure transparency on matters procurement.

Board mandate

The Sacco adheres to SASRA’s governance regulations in regards to vetting or nomination of delegates and members of the board. The board of directors has a responsibility to members, employees and stakeholders in ensuring that there is a balance between economic and social wellbeing as well as  individuals and collective goals of the Sacco.

To this end, the board of directors  continues to steer the society towards sustainable growth. Corporate governance practices, policies and standards are regularly reviewed by the board in order   to align them  with   business’ strategic direction, emerging trends and best practices for continuous improvements.  Ultimately,    this   strengthens the Sacco’s governance structure.  Having  put in  place  these best   practices,   the  Kenya National Police DT Sacco is set towards achieving a greener future.