Nairobi — KCB Bank approved green loans worth Sh21.4 billion, which represent 15.5 percent of its total loan book, to support environmentally friendly projects, according to its 2023 Environmental, Social, and Governance (ESG) and Sustainability Report, released on Tuesday.
Last year, the lender screened a record number of clean credits worth Sh615 billion.
KCB Group CEO Paul Russo said that the loans went into projects in e-mobility, climate change adaptation and mitigation, energy efficiency, and renewable energy.
"We are increasing our 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," said Russo.
"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."
Russo added that they have expanded their focus on the 14 Sustainable Development Goals, including onboarding the bank's calculation of its financed emissions for 2023, by focusing on its primary carbon-intensive sectors to address various global challenges.
"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."
In efforts to reduce its carbon footprint, the bank planted over 300,000 trees across the country in 2023 alone, with a target of reaching 1.2 million trees by the end of 2024.
Further, it achieved a 11.14 percent reduction in carbon footprint intensity per staff member and increased its installation of LED lighting by 50 percent to optimize resource usage.
"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," said Forestry and Climate Change Cabinet Secretary Aden Duale, during the launch.
The bank is aiming to achieve a target of 25 percent of its total loan portfolio dedicated to sustainable initiatives by 2025.
