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Challenges to the implementation and domestication of environmental, social and governance (ESG) guidelines in global agricultural and horticultural supply chains – a Kenyan perspective


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Abstract

Efforts to embed international environmental, social and governance (ESG) safeguards in business operations are gaining momentum in many developing countries which supply agricultural, horticultural and livestock products to other middle income or highly developed countries. Whereas a little progress has been made, full compliance with ESG requirements is still not possible due to some constraints. This article is based on an elaborate literature review, critical review and expert opinion on the implementation and domestication of international ESG guidelines. It explores the nature of the ESG safeguards and the constraints that continue to impede full compliance to the standards. It is reckoned that ESG safeguards include a broad array of issues and the costs of compliance can be prohibitive, especially for small-scale producers. It recommends a gradual approach to implementation, increasing of sensitization on the importance of ESG and continuing training and research along every supply chain. It is also emphasized that political will at the international, national and corporate level are all crucial to achieving ESG compliance.

Keywords

sustainability, agriculture, horticulture, supply chains

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