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Absa pledges to double sustainable financing to Sh120bn by 2025

The bank has invested Sh60 billion on sustainable finance in 2023

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by ADAH TANUI

Business27 October 2023 - 13:05
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In Summary


  • •In the new Sustainability Report, the Bank  highlighted its strategic interventions across 13 commitments made during the launch of its Sustainability Commitments in November 2020.
Left To Right -UNGC Kenya Chairman Martin Ochieng, Absa Bank's Chairman Charles Muchene, MD Abdi Mohammed, Non Executive Director and Board Member Christine Sabwa and Chief Financial Officer Yusuf Omari during the report unveil.

Absa Bank Kenya PLC aims to double its sustainable finance allocation to Sh120 billion within two years as part of its renewed sustainability pledge.

Absa Bank Kenya managing director and CEO Abdi Mohamed said that in 2023 the Bank has advanced about Sh60 billion in sustainable finance comprising components of green finance and inclusive finance.

“Our ambition is to continue significantly expanding our investment in this space as we scale our support to sustainable development across all our economic sectors," said Mohamed.

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,” he added.

In the new Sustainability Report, the Bank highlighted its strategic interventions across 13 commitments made during the launch of its Sustainability Commitments in November 2020.

This included topics like Net Zero, Social and Environmental Impact, Empowering Women and Youth, and Creating Value for Businesses and Partners.

Absa Bank Board Chairman, Charles Muchene, said that in the last three years, they had been implementing their sustainability strategy which had 13 commitments as the core drivers of their shared value strategy.

"In acknowledgment of the importance of climate change and the urgent need for global action to avert a climate disaster, we have accelerated our efforts towards improving our green credentials and climate approach, including reducing our carbon footprint and pursuing green funding opportunities," said Muchene.

The Secretary for Administration, Ministry of Environment, Climate Change and Forestry John Elungata, emphasized the importance of a link between the financial sector, environmental protection, and combating climate change.

“We laud the private sector’s enthusiastic response to our call to support in preserving the environment, promoting sustainable resource management and driving climate action," said Elungata.

"This partnership is invaluable in securing a healthy and sustainable future for all and I extend an invitation to more private sector players to join us in addressing this critical agenda,” he added.

 The report by Absa also stated that the bank’s sustainability journey includes increased internal efficiency through a 13 per cent reduction in energy footprint and 26.3 per cent carbon footprint reduction by retrofitting to eco-friendly facilities.

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