KCB Reports Progress on Climate Action and Social Programs in 2023 Sustainability Report

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KCB Bank Group has emphasized its commitment to climate action and sustainable development, announcing significant investments in environmental initiatives and social programs in the 2023 KCB Sustainability Report.

“We are increasing 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. This report confirms that our key performance indicators and metrics accurately reflect the bank’s performance, enhancing transparency and accountability.” said Paul Russo, KCB CEO.

“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.” he added.

KCB expanded its focus to encompass 14 Sustainable Development Goals (SDGs). One notable initiative involves the bank’s calculation of its financed emissions for 2023, including Scope 3 emissions, by concentrating on its primary carbon-intensive sectors.

“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. For financial institutions, embracing sustainability and ESG principles is not merely a moral obligation but a strategic imperative.” Russo added.

KCB Bank planted over 300,000 trees in Kenya in 2023, with a target of reaching 1.2 million trees by the end of 2024, aiming to reduce its carbon footprint.

Additionally, the bank achieved an 11.14% reduction in carbon footprint intensity per staff member and increased its installation of LED lighting by 50% to optimize resource usage.

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Hon. Aden Duale, Cabinet Secretary in the Ministry of Environment, Climate Change, and Forestry, praised KCB’s efforts.

“As we confront the pressing challenges of climate change, it is crucial that we all play our part. KCB’s investments in green finance, reforestation, and sustainable development demonstrate that financial institutions can lead this effort.” Hon. Duale stated.

“The government is committed to supporting such initiatives that align with our national goals of environmental conservation, climate resilience, and inclusive growth.” he added.

Beyond its environmental initiatives, KCB has also made significant strides in social impact. In 2023, the bank supported 2,877 youth through entrepreneurship incubations under the 2jiajiri program, creating 13,352 direct jobs.

Additionally, KCB extended Kshs 115 billion in loans to women-owned businesses, empowering female entrepreneurs and advancing gender equality. KCB also approved green loans worth KES 21.4 billion, constituting 15.5% of its total loan portfolio in 2023.