KCB cuts carbon footprint, screens Kes336 billion in green loans
Regional lender, KCB Group continues to bolster climate advocacy, extending billions in credit to environment-conscious businesses and partaking in efforts to cut back carbon footprint through precise consumption to limit wastage.
The lender increased its green portfolio from 4 percent of the loan book in 2020 to 8.4 percent last year, mainly in real estate, renewable energy, transport, manufacturing, and agriculture sectors, and targets to bolster this portfolio to 25 percent in three years.
Progressive Action for Sustainable Development report released on Thursday shows the bank’s carbon footprint in the past two years shrunk by 11.25 percent on a deliberate push to reduce carbon emissions from its operations. KCB resource consumption declined 17 percent on lighter use of fuel, water, electricity, and paper.
During the period, KCB Bank has screened loans worth over Kes336 billion for social and environmental risks while increasing its green portfolio, bolstering its push for sustainable finance.
“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 Paul Russo, CEO, KCB Group.
Read also: Over five State-owned enterprises set for listing at the NSE — President Ruto
Mindful of the climate change threat to communities in the region, KCB identified opportunities such as providing capital to breakthrough new technologies, helping to finance the increased adoption of resource efficiency, renewable energy, and supporting the infrastructure that will make communities more resilient.
“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,” added Mr Russo.
This month, KCB Bank Kenya and 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.
Going into the future, KCB believes the next few years will be critical for the transition to a greener and a 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.
