Absa Bank Kenya plans to double its sustainable finance allocation to KES120 billion, expanding investment in renewable energy, energy efficiency, and green building sectors within two years.
This is part of the lender’s renewed commitment to sustainability.
The bank’s Managing Director and CEO, Abdi Mohamed, revealed that about Ksh 60 billion has already been advanced in sustainable finance this year, which includes green and inclusive finance components.
For instance, USD 10 million has been allocated for climate-smart agriculture. This initiative is part of a larger commitment to climate finance, with Ksh 25 billion set aside for this purpose.
Additionally, Ksh 15.2 billion has been disbursed through the Timiza program to support financially excluded groups, further demonstrating the commitment to sustainable development and financial inclusion.
“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,” said Mr Mohamed.
The bank’s new Sustainability Report highlights strategic interventions across 13 commitments made during the launch of its Sustainability Commitments in November 2020.
These commitments cover various themes such as net zero commitments, social and environmental impact, women and youth empowerment, and value creation for businesses and partners.
Absa Bank Kenya PLC Board Chairman, Charles Muchene, emphasized the bank’s accelerated efforts towards improving its green credentials and climate approach.
This includes reducing its carbon footprint and pursuing green funding opportunities.
“Absa has been tracking our carbon footprint for the past four years. The Bank has seen a decline in total CO2 equivalent emissions year on year. Initial interventions and process optimisations resulted in an initial 26% reduction in emissions from 2019 to 2020. An additional 3% reduction has been achieved from 2020 to 2022,” part of the report reads.
John Elungata, the Secretary for Administration, Ministry of Environment, Climate Change, and Forestry, lauded the private sector’s response to preserving Kenya’s environment and promoting sustainable resource management.
Significant milestones in the bank’s sustainability journey include a 13% reduction in energy footprint and a 26.3% reduction in carbon footprint by retrofitting to eco-friendly facilities.
As part of its commitment to become a net-zero carbon footprint company by 2040, Absa became the first bank to join the Kenya Green Building Society in 2020.
