The 2023 KCB Sustainability Report has highlighted KCB’s commitment to climate action and sustainable development, with a substantial investment in environmental initiatives and social programs from the past year.
Paul Russo, CEO of KCB, stated, “We are increasing focus on sustainability and environmental responsibility. We are proud to announce the release of the first assured report, setting a new standard in ESG reporting in Africa. This report confirms that our key performance indicators and metrics accurately reflect the bank’s performance, enhancing transparency and accountability.”
“This is borne from a belief that by aligning business practices with sustainability principles, financial institutions can drive long-term value creation, enhance their reputation, and mitigate risks associated with environmental and social challenges.” he added.
KCB has broadened its sustainability efforts to include 14 Sustainable Development Goals (SDGs). A significant step this year was the bank’s evaluation of its financed emissions for 2023, including Scope 3 emissions, focusing on high-carbon sectors.
“In 2023, we made a bold commitment to address the climate crisis by allocating resources to climate action projects, aiming to create a tangible impact on our environment and communities. For financial institutions, embracing sustainability and ESG principles is not merely a moral obligation but a strategic imperative.” Russo emphasized.
The bank has already planted over 300,000 trees in Kenya, aiming to reach 1.2 million trees by the end of 2024, a key measure to lower its carbon emissions. Furthermore, KCB has reduced its carbon footprint intensity per employee by 11.14% and increased its use of LED lighting by 50%, optimizing resource efficiency.
Read: KCB Customer Loans Hit Sh 1.02 Trillion in Q1 2024
Hon. Aden Duale, Cabinet Secretary for the Ministry of Environment, Climate Change, and Forestry, lauded KCB’s initiatives.
“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. The government is committed to supporting such initiatives that align with our national goals of environmental conservation, climate resilience, and inclusive growth.” he remarked.
On the social front, KCB has made considerable progress. In 2023, the bank’s 2jiajiri program supported 2,877 young entrepreneurs, generating 13,352 new jobs. Additionally, KCB disbursed Kshs 115 billion in loans to women-led businesses, promoting gender equality and empowering female entrepreneurs. The bank also approved green loans totaling KES 21.4 billion, representing 15.5% of its total loan portfolio for the year.