KCB Bank has significantly cut its carbon footprint by 11.25 per cent in its premises across the six countries it operates in, on a deliberate push to reduce carbon emissions from its operations.
The countries include Kenya, Tanzania, South Sudan, Uganda, Rwanda and Burundi.
In details contained in the latest sustainability report dubbed Progressive Action for Sustainable Development, KCB resource consumption was also down by 17 per cent, on the back of a deliberate cut in the use of fuel, water, electricity, and paper.
According to the report, the Group monitors the usage of the above resources on a daily basis.
Further, KCB Bank has screened loans worth over Ksh 336 billion for social and environmental risks while increasing its green portfolio in the past two years, bolstering its push for sustainable finance.
During the period, KCB increased its green portfolio from 4 per cent of the loan book in 2020 to 8.4 per cent last year, mainly in real estate, renewable energy, transport, manufacturing, and agriculture sectors. The Bank targets to increase its green portfolio to 25 per cent by 2025.
KCB, in addition, said it will in the coming years increase its sustainable financing by enhancing its threshold of loans subjected to Environmental and Social Due Diligence, increasing its green lending, and further cutting its footprint.
“We have refocused our efforts to deliberately address issues around environmental and social risk management in investment decisions to deliver a more inclusive, net-zero society for our stakeholders,” said KCB Group CEO Paul Russo.
“We are building a business that is more sustainable and keener to manage a new climate future by creating and finding innovative financial solutions to address environmental and social challenges. We want to do more for communities and lift as many households as possible to prosperity while taking care of the environment around us,” he added.
This month, KCB Bank Kenya and International Finance Corporation (IFC) signed a partnership that will help catalyze the growth of climate finance in Kenya by increasing support for businesses addressing climate change.
Under the deal, IFC will extend a $150 million loan to KCB to fund the growth of the bank’s climate finance portfolio, with a specific focus on financing the development of energy efficiency projects, renewable energy, climate-smart projects, and green buildings.
Through the partnership, IFC will support the bank to develop a climate finance strategy and build its capacity for climate risk assessment and reporting.
The loan by IFC is part of its work in Kenya to increase the amount of climate financing available as it is committed to growing its climate-related investments worldwide by working with different financial institutions to fund projects that support climate mitigation and adaptation.
Going into the future, KCB believes the next few years will be critical for the transition to a greener and more just economy.
As a result, the Bank is ready to step up and work with everyone to help build greater resilience to climate change to protect nature and ensure a seamless transition to a sustainable economy that leaves no one behind.