East Africa’s largest bank by asset value, KCB Group, is prioritizing environmental and social responsibility. Their 2023 Sustainability Report reveals a significant focus on green initiatives.
Half of the Loan Portfolio Screened for Sustainability
KCB screened Ksh 615 billion (nearly half of their total loans) for environmental and social risks in 2023 a demonstration of their commitment to sustainable lending practices.
During the period, it approved Ksh 21.4 billion in green loans representing 15.5% of their total loan portfolio.
These loans support projects in areas like e-mobility, climate change adaptation, renewable energy, and energy efficiency.
The group is currently leading the way in transparency by becoming the first African financial institution to have its ESG report assured by external auditors.
The Group’s green projects encompass renewable energy, sustainable agriculture, waste management, recycling, and climate-smart infrastructure. They aim to channel 25% of their loans to green projects by 2025.
Expanding Focus on SDGs
KCB has expanded its focus to address 14 Sustainable Development Goals, aiming to tackle a wider range of global challenges.
It reduced its carbon footprint by planting over 300,000 trees in 2023 with a target of 1.2 million by 2024 and increasing LED lighting usage by 50%.
In the year, it supported 2,877 youth entrepreneurs through its 2jiajiri program and provided Ksh 115 billion in loans to women-owned businesses. In addition, it disbursed Ksh 100 billion in loans to Micro, Small, and Medium Enterprises, crucial drivers of regional economic development.
“We are increasing focus on sustainability and environmental responsibility. We are proud to be the first to assure our report, setting a new standard in ESG reporting. This aligns business practices with sustainability principles, driving long-term value creation and mitigating environmental and social risks,” KCB Group CEO Paul Russo disclosed.
“As we confront the pressing challenges of climate change, it is crucial that we all play our part. KCB’s investments in green finance, reforestation, and sustainable development demonstrate that financial institutions can lead this effort.”
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