In a groundbreaking move that solidifies its position as a trailblazer in sustainable finance, KCB Group released its 2023 Environmental, Social, and Governance (ESG) and Sustainability Report. This landmark report not only highlighted the bank’s remarkable achievements in green lending but also marked a significant milestone as KCB became the first financial institution in East Africa to have its sustainability report externally assured.
The report revealed that KCB screened loans worth a staggering KES 615 billion for environmental and social risks in 2023, constituting a remarkable 56.4% of the Group’s total loan book. This figure underscores the bank’s unwavering commitment to supporting projects with positive environmental impacts, cementing its position as a leader in sustainable finance.
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KCB’s commitment to sustainability extends beyond green lending. The bank has expanded its focus to encompass 14 Sustainable Development Goals (SDGs), demonstrating its holistic approach to tackling global challenges. One notable initiative is the bank’s calculation of its financed emissions for 2023, including Scope 3 emissions, by concentrating on its primary carbon-intensive sectors.
Furthermore, KCB approved green loans worth KES 21.4 billion, representing 15.5% of its total loan portfolio in 2023. These loans were directed towards projects in e-mobility, climate change adaptation and mitigation, energy efficiency, and renewable energy, demonstrating the bank’s dedication to driving sustainable development.
Speaking at the launch event, KCB Group CEO Paul Russo emphasized the strategic importance of aligning business practices with sustainability principles. “By embracing sustainability and ESG principles, financial institutions can drive long-term value creation, enhance their reputation, and mitigate risks associated with environmental and social challenges,” he stated.
The bank’s efforts to reduce its carbon footprint are equally impressive. KCB has planted over 300,000 trees in Kenya in 2023 alone, with a target of reaching 1.2 million trees by the end of 2024.
Additionally, the bank achieved an 11.14% reduction in carbon footprint intensity per staff member and increased its installation of LED lighting by 50% to optimize resource usage.
Hon. Aden Duale, Cabinet Secretary in the Ministry of Environment, Climate Change and Forestry, praised KCB’s initiatives during the launch event. “KCB’s investments in green finance, reforestation, and sustainable development demonstrate that financial institutions can lead this effort.
The government is committed to supporting such initiatives that align with our national goals of environmental conservation, climate resilience, and inclusive growth,” he said.
KCB Sustainability Report
KCB’s sustainability efforts extend beyond environmental initiatives. The bank has also made significant strides in fostering inclusive growth and empowering women and youth entrepreneurs. In 2023, KCB supported 2,877 youth through entrepreneurship incubations under the 2jiajiri programme, creating 13,352 direct jobs.
Additionally, the bank extended KES 115 billion in loans to women-owned businesses, empowering female entrepreneurs and advancing gender equality. KCB also disbursed KES 100 billion in loans to Micro, Small, and Medium Enterprises (MSMEs), which are essential drivers of economic development in the region.
As KCB Group continues to lead the charge in sustainable finance, it sets a new standard for the industry. The bank’s ambition to dedicate 25% of its total loan portfolio to sustainable initiatives by 2025 is a testament to its unwavering commitment to creating a better future for all.
