When I&M Group published its 2025 Sustainability Report, Regional CEO Kihara Maina described it as both an accountability milestone and a statement about the kind of institution we want to become. That statement captures a fundamental shift underway at the regional financial services group: sustainability is no longer a peripheral concern but a central driver of how the organisation governs itself, manages risk, and holds itself accountable.

I&M Group’s governance framework rests on a foundation that has long emphasised integrity, transparency, and accountability across all levels. But the past two years have seen a significant evolution. In 2024, the Group formed the Board Sustainability Committee, a designated Board committee mandated to oversee sustainability and ESG practices across the entire Group. This was not a symbolic addition; the Committee’s terms of reference charge it with directing and overseeing the formulation of the Group’s Sustainability Policy, overall sustainability strategies, frameworks, initiatives, priorities and targets (the Sustainability Scorecard).

The Committee ensures that business practices are tailored towards long-term success and that the Group’s strategic plan supports long-term value creation. This governance structure sits alongside the Group’s existing Board committees, including the Board Audit and Risk Management Committee and the Board Nomination, Remuneration and Governance Committee, creating a dedicated oversight channel for sustainability matters.

The sustainability policy itself, approved by the Board of Directors, affirms the Group’s commitment to integrate and embed sustainability across its strategic framework, product design, business operations, and stakeholder relationships. It applies to all areas of operations, including lending, investments, corporate practices, and procurement.

Crucially, I&M Group has aligned its sustainability framework with internationally recognised standards: the UN Sustainable Development Goals, the United Nations Global Compact (which the Group joined in 2023), IFRS S2 climate disclosure standards, the Global Reporting Initiative, the Taskforce for Nature-related Financial Disclosures, and IFC Performance Standards. This multi-framework approach signals a serious commitment to global best practice rather than box-ticking compliance.

Governance structures are only as effective as the risk management systems they oversee. I&M Group has taken a systematic approach to integrating environmental, social, and governance considerations into its Enterprise Risk Management Framework (ERMF).

The Group’s Environmental and Social Management System (ESMS) serves as a core component of this framework. It enables the systematic identification, assessment, and management of environmental and social risks, including climate-related risks, across the value chain. The ESMS is embedded within the broader Enterprise Risk Management System, ensuring that ESG risks are considered alongside other key risk categories in decision-making processes.

This is not abstract policy. The ESMS involves systematic screening of projects to categorise risks, followed by detailed environmental and social due diligence for higher-risk transactions. The Group applies environmental and social risk screening to all relevant activities and transactions, with clear risk categorisation, due diligence protocols, and ongoing monitoring and reporting requirements. The Group maintains an internal exclusion list reflecting international good practice and applicable regulatory requirements, ensuring it does not support activities inconsistent with its environmental and social commitments.

The integration runs deep. ESG risk assessment is embedded in investment decisions, with environmental risks, including climate change and resource depletion, mitigated through responsible investment and operational policies. The Group has also established dedicated leadership for this function, with a Head of ESG and Climate Risk leading the organisation’s strategy on ESG matters and climate-related risk management.

The governance of climate-related risks and opportunities is seamlessly integrated within the enterprise risk management framework, marking a significant step in reinforcing the Group’s dedication to cultivating a risk-aware culture.

Perhaps the most significant shift in I&M Group’s approach is the move from aspirational commitments to measurable delivery and stronger accountability, a point Maina emphasised repeatedly during the 2025 Sustainability Report launch.

The Group’s ambition to positively impact more than 50 million lives by 2030 is underpinned by a Sustainability Action Plan with detailed initiatives, each measured and monitored against pre-defined impact metrics. The 2025 Report establishes a baseline against which I&M will track progress.

Accountability is embedded in the governance framework. The Board is responsible and accountable to shareholders, regulators, and other stakeholders. The Group’s risk culture emphasises the importance of accountability, transparency, and proactive risk management across all levels, aligning risk management practices with core values of integrity, ethical conduct, and commitment to sustainability.

This accountability extends to transparency and reporting readiness. I&M Group has embarked on capacity-building initiatives and alignment of reporting frameworks towards compliance with IFRS sustainability disclosure requirements. The Group is progressively enhancing the quality and transparency of its sustainability disclosures, enabling it to respond to evolving regulatory expectations while providing customers, shareholders, regulators, and other stakeholders with a clearer view of how sustainability considerations are influencing the Group’s growth.

The message is clear. As Maina put it: “Our credibility will not be determined by the commitments we make today, but by our ability to translate them into consistent and measurable action across our five markets.”

I&M Group’s 2025 Sustainability Report identifies four strategic priorities for the future:

  1. Strengthening ESG oversight and integrating sustainability into risk management
  2. Advancing climate, nature and environmental stewardship
  3. Deepening social impact and inclusive growth
  4. Enhancing transparency and reporting readiness.

These priorities reflect an organisation that understands that strong governance and accountability are not just compliance requirements but strategic drivers of long-term value creation.

The governance architecture is in place. The risk management systems are being embedded. The accountability mechanisms are being strengthened. The question now is whether I&M Group can translate these structures into the consistent, measurable action that will define its credibility in the years ahead.