Absa Bank Kenya has locked over KSh120 billion to influence sustainable projects within the Kenyan economy in the next three years.
In its new Sustainability Report released on Wednesday, Absa Bank has highlighted its strategic interventions across 13 commitments made during the launch of its Sustainability Commitments in November 2020, covering various themes such as Net Zero Commitments, Social and Environment Impact, Women and Youth Empowerment, and Value Creation for Businesses and Partners.
Speaking at the event, the Absa Bank Kenya PLC Board Chairman, Charles Muchene, said: “In the last three years, we have been implementing our sustainability strategy, which has 13 commitments as the core drivers of our shared value strategy. In acknowledgment of the importance of climate change and the urgent need for global action to avert a climate disaster, we have accelerated our efforts towards improving our green credentials and climate approach, including reducing our carbon footprint and pursuing green funding opportunities.”
The lender disclosed that 20 per cent of its current loans pass as sustainable finance. This year, it has advanced Sh60 billion in sustainable finance targeting energy efficiency, green buildings, agriculture, renewable energy and climate smart projects.
“We acknowledge an important modern-day reality that business and social goals are linked, as a financial institution we have immense opportunity through our financing and intermediation role to influence and encourage sustainable practices in the economy,” said Absa Bank Kenya Managing Director and CEO Abdi Mohamed.
“You can therefore expect to see us playing an even bigger and bolder role, specifically in renewable energy, energy efficiency, green building, and climate-smart agriculture sectors in the days ahead,” he said.
The announcement comes at a time when the Kenya Bankers Association is moving its members towards lending decisions that benefit the environment, society and economy.
In early September, the industry through the umbrella body launched Climate-Related Financial Disclosures Template to offer guidance to banks in appropriately and comprehensively reporting their respective institution’s climate-related risks and opportunities. By adhering to these disclosures, the banks can enhance transparency and communicate their approach to climate-related risks and opportunities.
Amongst the other significant milestones attained in Absa Bank’s sustainability journey include increased internal efficiency through a 13 per cent reduction in energy footprint and a 26.3 per cent carbon footprint reduction by retrofitting to eco-friendly facilities such as minimizing plastic bottled water use and energy usage in its business premises.