Risks associated with change in weather patterns are threatening to wipe out economic strides different countries across the world have made over the past years.
A United Nations backed report The State of Climate in Africa 2020 reveals increased weather and climate variability are disrupting lives and economies, with estimates that by 2030, up to 118 million people on the continent will be exposed to drought, floods and extreme heat.
- •In Sub-Saharan Africa, climate change could further lower gross domestic product (GDP) by up to 3 per cent, by 2050.
- •The report estimated that climate adaptation for sub-Saharan Africa would cost between $30 to $50 billion each year over the next decade, or roughly two to three per cent of GDP.
- •Realizing the impact of their businesses to the environment, listed companies at the Nairobi Securities Exchange (NSE) are racing towards protecting the environment against further degradation.
Sustainability Goals
Going by the 2022 sustainability reports, listed companies are spending millions towards decarbonizing their business operations to achieve net-zero carbon emissions, at least by 2050.
“We understand the impacts our decisions and actions have on the environment, society, and governance structures. Hence, our commitment to nurturing an environment that actively mitigates climate risk and encourages responsible resource utilization, coupled with an unwavering commitment to uphold the principles of good governance,” noted John Murugu, Chairman Co-operative Bank.
“We are fully committed to sustainable development and achievement of positive environmental and social outcomes with good governance,” said Gideon Muriuki, Chief Executive Officer, Co-operative Bank.
He noted that the commitment to these principles resonates across the banks operation and business activities, showcasing proactive efforts in mitigating climate change, ensuring responsible resource use, promoting green financing, and upholding the highest standards of governance.
Absa Bank Kenya Managing Director and CEO Abdi Mohamed said people should expect more as focus is to play an even bigger and bolder role, specifically in renewable energy, energy efficiency, green building, and climate smart agriculture sectors in the days ahead.
“Our ambition is to continue significantly expand our investment in this space as we scale our support to sustainable development across all our economic sectors,” said Mohamed.
He said that this year, the bank has advanced about KSh 60 billion in sustainable finance, comprising components of green finance.
“[…]we have accelerated our efforts towards improving our green credentials and climate approach, including reducing our carbon footprint and pursuing green funding opportunities,” Absa Bank Kenya PLC Board Chairman, Charles Muchene, said.
Green Credentials
Bamburi Cement’ 2022 Sustainability Report details its green growth trajectory geared towards decarbonising its business operations to achieve net-zero carbon (CO2) emissions by 2050. In 2022, the company lowered its carbon emissions by 3.2 per cent and achieved a 5.5 per cent increase in the use of alternative fuels in its operations.
Bamburi Cement Group Managing Director Mohit Kapoor attributed the reduction in the Scope 1 carbon emissions to ongoing key initiatives, which include the use of alternative fuels in place of fossil fuels, alternative raw materials to substitute clinker, the use of renewable energy as well as optimization of the cement manufacturing process.
To promote green operations, Bamburi Cement also focused on green mobility as well as adopting smart construction technology like 3D printing, which reduces CO2 emissions by up to 80% compared to other conventional construction methods.
During the reporting period, Bamburi Cement eco-labeled four of its cement brands with a lower carbon footprint of between 30% to 90% compared to the pure Ordinary Portland Cements. The green cement includes Bamburi Fundi (-54%), Bamburi Tembo (-41%), Bamburi Nguvu (-41%) and Bamburi Duracem (-64%).
- •In addition, the ratio of clinker used in cement production also reduced to 53.3% from 54% in 2021 mainly attributed to increased production of Fundi and Minecem, which make up part of the green cement portfolio.
‘’Climate change remains a key focus area and we will continue to work with our stakeholders to support green projects and the blue economy,’ said William Khamasi, Stanbic Bank Head of Sustainability.
In the 2022 Sustainability Report, Stanbic Holdings details how the company is approaching sustainability and highlights progress and performance for the financial year 2022 in Kenya and South Sudan.
‘’We continue to center our strategic priorities on growth drivers that are sustainable and beneficial for our people, clients and the entire environmental ecosystem,” Dr. Joshua Oigara, Chief Executive Stanbic Kenya and South Sudan said.
Stanbic Bank’s strides in green financing in the past year points a clear focus to channel funds and expertise towards projects and solutions that will have a positive impact on the economy while preserving the environment.
- •The bank has frameworks and governance structures to ensure accountability and transparency in our operations, which is key for sustainability.
- •As part of its sustainability aspirations, Stanbic has identified some key impact areas and set goals for the next 3 years, with green financing representing 10 per cent of total book by December 2023.
Private Sector Investment Key in Fight Against Climate Change – UN – Kenyan Wallstreet