APA Insurance Joins UN Global Compact to Drive Sustainability
APA Insurance has joined the United Nations Global Compact, committing to strengthen responsible business practices and promote sustainability across its operations.
The move places APA Insurance among organizations supporting the UN Global Compact’s Ten Principles, which focus on human rights, labour standards, environmental protection and the fight against corruption.
Kenya’s insurance industry is facing growing pressure to make sustainability a central part of its business. The UN Global Compact Network Kenya (GCNK) is encouraging insurers to move beyond traditional business approaches and adopt practices that support long-term economic, social and environmental goals.
The issues were discussed during an Insurance Sector Dialogue on Responsible Business and Sustainability held in Nairobi. The meeting brought together industry stakeholders to examine how insurers can align their operations with global sustainability goals while responding to emerging risks.
Participants acknowledged that Kenya’s insurance sector has made progress in adopting responsible business practices. However, they stressed that more needs to be done to ensure sustainability becomes part of long-term business planning rather than a short-term initiative.
The UN Global Compact was highlighted as an important platform that can help companies achieve this shift by providing access to tools, resources and networks that support responsible business practices.
Industry experts also pointed to several challenges that could slow progress, including limited internal capacity and a tendency among some businesses to focus on short-term results. They said stronger partnerships would be necessary to overcome these barriers and help the insurance sector deliver meaningful and lasting impact.
Participants further called for regulatory frameworks to keep pace with growing sustainability ambitions. They also urged insurers to develop innovative insurance products that can support green economic growth and help businesses and communities prepare for climate-related risks.
Another key recommendation was for insurers to incorporate Environmental, Social and Governance (ESG) factors into their underwriting and investment decisions. This would allow the industry to better consider environmental and social risks when determining where and how to deploy capital.
The meeting also encouraged greater sharing of knowledge on emerging threats, particularly climate-related shocks that could affect businesses, communities and the wider economy. Stakeholders agreed that collaboration among insurers, government and civil society will be critical in helping the sector move beyond traditional models and build a more sustainable future.