Absa Bank Kenya advanced close to Sh60 billion in sustainable finance in 2023, highlighting its ongoing commitment to driving sustainable development.
This figure, contained in the bank’s sustainability report released Thursday is made up of Sh22.3 billion advanced as climate and sustainability-linked finance and Sh36.9 billion in inclusive finance.
According to the report themed, ‘Banking on a Better, Sustainable Future', at least Sh14.1 billion went to climate finance and clean energy while Sh2.9 billion was advanced to green building.
At least Sh2.2 billion went towards climate-smart agriculture financing and other sustainability-linked lending.
On the other hand, Sh21 billion was advanced to individuals and small businesses through Absa’s virtual banking platform Timiza, while Sh11 billion was loaned to Micro Small and Medium Enterprises with an additional Sh4.9 billion to women entrepreneurs, all classified as inclusive finance.
The Absa Bank Kenya managing director, Abdi Mohamed reaffirmed the bank’s commitment to operating in a manner that is not only profitable but also responsible, ethical, and aligned with the broader needs of society.
“In today’s world, our stakeholders - whether they are investors, regulators, or customers - expect more from us. They want to see the bigger picture, understanding not only how we create value for our shareholders,'' he said.
The report also highlights the notable strides the bank has made in combating climate change.
In the year under review, in partnership with various organisations, the Bank grew 728,095 trees, accelerating its commitment to plant 10 million trees by 2032.
Festus Ng’eno, the principal secretary, the State Department of Environment and Climate Change said that the financial sector plays a pivotal role in shaping the trajectory of our nation’s development.
"Banks are not merely financial intermediaries; they are the lifeblood of our economy. Absa’s dedication to integrating sustainability into its core operations sets a precedent for other financial institutions and indeed, for all sectors of the economy.”
During the period, at least 728,095 trees were grown through partnerships with customers, communities and partners.
The lender also reduced operational carbon emissions by eight per cent in line to achieve Net zero status by 2050.
At least 85 sites were retrofitted with energy-saving technology, with five certified as green buildings.
The bank achieved 51:49 women to men gender split across the organisation with 40:60 in leadership.
