Highlights of Equity Group sustainability report to boost transformation in Africa

Equity Group has unveiled its Sustainability Report 2022 as it seeks to drive its pledge to enhance socio-economic and environmental transformation across the African continent.

Equity says the report themed “Growing Together in Trust” will see it foster viable business practices and Environmental, Social and Governance (ESG) aspirations into daily operations.

Equity Group Chairman Professor Isaac Macharia says the report is pivotal during economic recovery efforts after Covid-19 coupled with climate change, food insecurity and debt.

“This report signifies our relentless vision to be a driving force behind sustainable socio-economic prosperity in Africa. In the face of pandemic repercussions and global climate challenges, it falls upon the private sector in collaboration with governments, development and like-minded partners to lead the charge in addressing societal concerns,” he said.

Professor Macharia added: “At Equity, our twin-engine business model drives us to seamlessly integrate sustainability into our core business strategy, propelling Africa towards an equitable and prosperous future.”

Equity Group MD and CEO Dr James Mwangi stressed on the importance of companies and other key stakeholders going beyond business and embracing sustainable transformation.

“Technology adoption will be the cornerstone of Africa's development in line with the fourth industrial revolution. Our resolve remains unshaken - we must break free from the shackles of the old socio-economic order,” Dr Mwangi stated.

He added: “We recognize that a sustainable future demands conscious consideration of our impact on both people and the planet, and this report illustrates how Equity is leading the way in this endeavor. This has been the guiding principle since we were established nearly 40 years ago.”

The 2022 Sustainability Report captures the strides made in incorporating Equity’s pledges these into its strategy, governance, risk management as well as performance measurement.

Equity says its report complies with the Global Reporting Initiative (GRI) and Taskforce for Climate-Related Financial Disclosure (TCFD) guidelines as a testament of its commitment.

The Group says its initiative to plant 21.8 million trees aligns with efforts to restore Kenya's forest cover, implement climate-smart agriculture and provide needed support to farmers.

Dr Mwangi intimated that Equity Bank had already integrated climate risk assessment into its credit process and has so far financed more than $120 million worth of green projects.

“Our Board of Directors comprises a commendable 33 per cent female representation, aligned with gender parity benchmarks set by developed economies. Moreover, we take immense pride in the notable 48 per cent female representation across all Group and subsidiary board committees, underscoring our firm commitment to fostering equitable opportunities at every echelon of our organization,” added Dr Mwangi.

“As the world confronts sustainability challenges, there’s pressure for organizations such as Equity to articulate and demonstrate the role we are playing to address these challenges and to become and prioritize sustainability,” said Equity Group Board Sustainability Committee Chairperson Dr Helen Gichohi.

Here are Equity Group social engine’s core pillars for a brighter and more sustainable future:

Education and Leadership Development: In 2022, Equity Group granted a total of 47,009 scholarships with a 97 per cent secondary school completion rate and 82 per cent qualifying for university.

The Equity Leadership Program (ELP) and Technical and Vocational Education and Training (TVET) initiatives benefited 17,820 university scholars and 761 global scholars, and facilitated 7,482 paid internships to nurture the next generation of leaders.

Food and Agriculture: A total of 3.9 million farmers benefited from Equity initiatives in 2022, while 215,512 SMEs across the country received instrumental support and training.

To boost financial inclusion, 3.98 million small-scale and peasant farmers got agricultural finance, with a total of Sh73.3 billion loaned to farmers and value chain players in 2022.

Similarly, the Young Africa Works Program also disbursed Sh223.1 billion to various MSMEs, in a bid to strengthen entrepreneurship and foster economic development.

Health: Equity Afia currently boast of 77 clinics that served a total of 597,943 patients in 2022 with the Group aiming to open 150 more clinics in Kenya and 30 others in DRC in 2023.

Cumulatively, the total number of patient visits to Equity Afia clinics clocked 1,299,523.

Enterprise Development and Financial Inclusion: In 2022, Equity Group trained 2,411,105 women and youth in financial education, and equipped them with essential financial skills.

406,421 SMEs were also trained on entrepreneurship with a total of Sh223.1 billion disbursed to MSMEs under the Young Africa Works Program to empower entrepreneurs.

Energy, Environment and Climate: Equity Group has been promoting clean energy and environmental conservation and distributed 375,683 clean energy products, planted 21.8 million trees to align with the government’s initiaitive to restore Kenya's forest cover.

Social Protection: Equity Group's social protection efforts have touched 4.5 million persons, with Sh117 billion disbursed through cash transfers in 2022 alone to foster financial inclusion, support vulnerable communities, and promote socio-economic integration.

Speaking during the launch at Karura forest, Environment, Climate Change and Forestry PS Engineer Festus Ng’eno said the report exhibited Equity’s pledge to transform the planet.

“It demonstrates your commitment to ensuring that you are creating meaningful change for the benefit of the planet and future generations,” he said in a statement read by John Elungata, Secretary Administration, Ministry of Environment, Climate Change and Forestry.

“The launch of this report is a bold step by Equity and a demonstration that Kenya's private sector is continuing to set the tone for sustainability conversations in the continent,” added Dr Cyrille-Lazarre Siewe, Coordinator and Head at UNEP Kenya.

The report incorporates the entire Equity Group, which consists of Equity Group Holdings Plc, its banking subsidiaries in Kenya, DRC, Uganda, Rwanda, South Sudan and Tanzania.

It also includes the Commercial Representative Office in Ethiopia, Equity Group Foundation, Equity Investment Bank subsidiaries, Equity Bancassurance Intermediary Limited, Finserve Africa Limited, Finserve Africa Trustees Limited, Equity Life Assurance (Kenya) Limited, and Equity Group Insurance Holdings Limited.