NAIROBI, Kenya – Equity Bank emerged as a global leader in climate-related financing among 258 participating financial institutions, according to the bank’s 2023 sustainability report released on Tuesday at Karura Forest.
The report highlights Equity’s extensive commitment to environmental sustainability, marking significant progress in aligning its operations with global climate action goals.
The bank achieved almost complete compliance with the Climate Assessment for Financial Institutions (CAFI), a tool developed by the International Finance Corporation (IFC), a member of the World Bank Group.
This tool allows institutions to report on their financing activities that contribute to mitigating climate change impacts, emphasizing transparency and accountability in climate finance.
Equity Bank’s sustainability efforts have significantly impacted both households and businesses, with over 47,593 entities adopting adaptive and mitigating solutions to counter climate change’s adverse effects.
These solutions range from micro-financing options, such as climate loans as low as Sh6,000 for energy-efficient cook stoves, to substantial investments like the Sh8.54 billion allocated for renewable energy projects, including hydro, geothermal, and wind power.
In total, the bank disbursed more than Sh24 billion in 2023 for various climate finance initiatives, covering sectors like energy efficiency, renewable energy, and climate-smart agriculture.
These efforts collectively contributed to a reduction of 39,917.4 tonnes of CO2 emissions over the year, demonstrating Equity’s robust role in advancing environmental stewardship.
James Mwangi, Equity Bank Group CEO, emphasized the institution’s holistic approach to integrating Environmental, Social, and Governance (ESG) principles into its core operations.
“Today, our business model encompasses a tri-engine approach with an economic focus, a social focus, and a nature and environmental focus, all working to achieve positive impact,” Mwangi stated.
He further highlighted the bank’s ongoing efforts across its seven operational markets: Kenya, Uganda, Tanzania, South Sudan, Rwanda, the Democratic Republic of Congo (DRC), and Ethiopia.
The report also detailed fluctuations in energy consumption across different regions in 2023.
Notably, Kenya reduced its grid-based energy consumption by 9.7%, while Rwanda and the DRC experienced slight increases of 0.4% and 13.1%, respectively.
The DRC recorded the highest energy intensity per staff at 4,307 kWh, although this represented a 7% improvement from 2022 levels.
Efforts to reduce energy use per staff member were also noted in Rwanda, with a 15% reduction, and Kenya, with a 6% decrease.
In terms of waste management, Equity Bank set ambitious targets to minimize waste generation and eliminate landfill disposal across its subsidiaries.
The report identified paper waste as a significant challenge, accounting for 72% of the total 316 tonnes of waste generated in Kenya.
The bank has implemented initiatives such as increased digitization, engagement with e-waste recyclers, and the introduction of reverse osmosis water systems and glass water bottles to reduce reliance on single-use plastics.
Equity Bank’s water conservation efforts were also highlighted, with a 25% reduction in water consumption, totaling 57,235 cubic meters, compared to the same period in 2022.
Through the Equity Group Foundation, the bank has mainstreamed tree planting to combat climate change, planting over 25.2 million trees and distributing more than 420,243 clean energy products to households and institutions.
The foundation also supports social and economic resilience by providing cash transfer programs, benefiting 5.4 million individuals with over Sh138.39 billion disbursed to date.
The report highlights Equity’s extensive commitment to environmental sustainability, marking significant progress in aligning its operations with global climate action goals.
The bank achieved almost complete compliance with the Climate Assessment for Financial Institutions (CAFI), a tool developed by the International Finance Corporation (IFC), a member of the World Bank Group.
This tool allows institutions to report on their financing activities that contribute to mitigating climate change impacts, emphasizing transparency and accountability in climate finance.
Equity Bank’s sustainability efforts have significantly impacted both households and businesses, with over 47,593 entities adopting adaptive and mitigating solutions to counter climate change’s adverse effects.
These solutions range from micro-financing options, such as climate loans as low as Sh6,000 for energy-efficient cook stoves, to substantial investments like the Sh8.54 billion allocated for renewable energy projects, including hydro, geothermal, and wind power.
In total, the bank disbursed more than Sh24 billion in 2023 for various climate finance initiatives, covering sectors like energy efficiency, renewable energy, and climate-smart agriculture.
These efforts collectively contributed to a reduction of 39,917.4 tonnes of CO2 emissions over the year, demonstrating Equity’s robust role in advancing environmental stewardship.
James Mwangi, Equity Bank Group CEO, emphasized the institution’s holistic approach to integrating Environmental, Social, and Governance (ESG) principles into its core operations.
“Today, our business model encompasses a tri-engine approach with an economic focus, a social focus, and a nature and environmental focus, all working to achieve positive impact,” Mwangi stated.
He further highlighted the bank’s ongoing efforts across its seven operational markets: Kenya, Uganda, Tanzania, South Sudan, Rwanda, the Democratic Republic of Congo (DRC), and Ethiopia.
The report also detailed fluctuations in energy consumption across different regions in 2023.
Notably, Kenya reduced its grid-based energy consumption by 9.7%, while Rwanda and the DRC experienced slight increases of 0.4% and 13.1%, respectively.
The DRC recorded the highest energy intensity per staff at 4,307 kWh, although this represented a 7% improvement from 2022 levels.
Efforts to reduce energy use per staff member were also noted in Rwanda, with a 15% reduction, and Kenya, with a 6% decrease.
In terms of waste management, Equity Bank set ambitious targets to minimize waste generation and eliminate landfill disposal across its subsidiaries.
The report identified paper waste as a significant challenge, accounting for 72% of the total 316 tonnes of waste generated in Kenya.
The bank has implemented initiatives such as increased digitization, engagement with e-waste recyclers, and the introduction of reverse osmosis water systems and glass water bottles to reduce reliance on single-use plastics.
Equity Bank’s water conservation efforts were also highlighted, with a 25% reduction in water consumption, totaling 57,235 cubic meters, compared to the same period in 2022.
Through the Equity Group Foundation, the bank has mainstreamed tree planting to combat climate change, planting over 25.2 million trees and distributing more than 420,243 clean energy products to households and institutions.
The foundation also supports social and economic resilience by providing cash transfer programs, benefiting 5.4 million individuals with over Sh138.39 billion disbursed to date.
