Absa Bank Kenya has taken significant steps in advancing sustainability, as highlighted in its 2023 Sustainability Report, "Banking on a Better, Sustainable Future".

The report launched on Thursday details how the bank is contributing to environmental conservation, financial inclusion, and community development while aligning its operations with the United Nations Sustainable Development Goals (SDGs).

Abdi Mohamed, the Managing Director and CEO of Absa Bank Kenya PLC, expressed the Bank’s dedication to operating ethically and sustainably.

“In today’s world, our stakeholders - whether they are investors, regulators, or customers - expect more from us. They want to see the bigger picture, understanding not only how we create value for our shareholders but also the broader impact we have on society and the environment," Mohamed stated.

Mohamed reflected on Absa’s ongoing journey towards a sustainable future: “At Absa Bank, our commitment to creating a sustainable future for all is pegged on our brand purpose of empowering Africa’s tomorrow, together one story at a time. We remain committed to providing sustainable financial solutions that support businesses, hence facilitating economic growth. Our sustainability journey is a testament to our commitment to making a positive impact on society and the environment. We are proud of what we have been able to accomplish, but we are cognizant that there is still much to be done.”

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Environmental Leadership and Green Financing

A core part of Absa’s sustainability drive is its environmental efforts, which have gained momentum through strategic partnerships.

In collaboration with the Kenya Forest Service and various Community Forest Associations, Absa has embarked on a national tree-planting initiative that aims to plant 10 million trees by 2032.

This is aligned with the Kenyan government’s target to plant 15 billion trees within the same period.

As part of this initiative, 10,000 trees were planted at Njukiini Forest in Embu County, and 2,500 trees were planted at Kasarani Stadium through partnerships with Athletics Kenya and other stakeholders.

Moreover, the bank has mapped out clear environmental goals, particularly reducing its carbon footprint. Absa has committed to reaching net-zero emissions by 2040 for Scope 1 and 2 emissions, and by 2050 for Scope 3-financed emissions.

In line with this, the bank allocated Sh 63 billion to sustainable finance in 2023, with Sh26 billion specifically earmarked for climate finance. Of this, 84 per cent (Sh22.3 billion) was taken up, with a notable Sh2 billion directed toward climate-smart agriculture.

The bank also made substantial contributions to renewable energy projects, particularly through a Sh2 billion investment in solar-powered projects for off-grid communities, and through financing green building projects in partnership with Acorn Holdings Limited.

A Sh6.7 billion financing deal was reached for the development of 10 Purpose-Built Student Accommodations (PBSAs) to address the housing deficit for students, showcasing Absa's support for sustainable infrastructure.

Financial Inclusion and Empowerment

Absa has also made great strides in promoting financial inclusion, especially among marginalised groups such as women, youth, and persons living with disabilities (PLWDs).

Through its See Her Empowered (SHE) Star Programme, over 35,000 women entrepreneurs have been empowered, helping them access financial services and gain a competitive edge in business.

Backed by a Sh10 billion fund, the bank aims to enhance credit access for women-owned Small and Medium-sized Enterprises (SMEs) by 2025.

In its supply chain, Absa has been driving diversity, with 15.5 per cent of its active suppliers being women, youth, and PLWDs. As part of this, 503 women suppliers were trained in corporate procurement to boost their competitiveness.

The bank has committed to increasing the representation of PLWD-owned businesses in its supply chain, with a target to reach 5 per cent by 2025.

In 2023, Absa allocated Sh150 million towards sustainability and citizenship-related projects, which have directly uplifted the socio-economic conditions of the communities it operates in.

Digital Transformation and Education Initiatives

The digital divide remains a challenge, but Absa is committed to bridging it through its Computers for Schools programme, which installed 65 computer labs across schools in Kenya in 2023.

In total, the bank donated Sh25 million to support digital literacy by providing 20 fully networked desktop computers and lab furniture in each selected school.

Furthermore, the bank’s Ready to Work (R2W) programme has equipped thousands of young people with the skills they need to transition smoothly from education to the workforce. In 2023 alone, the R2W programme impacted 20,274 youth.

Absa’s digital banking platform Timiza also continues to make a significant contribution to financial inclusion. Since its launch in 2018, Timiza has attracted over 5 million customers, disbursing Sh21 billion in 2023 alone, which included 1.5 million loans to 300,000 women customers.

Corporate Governance and Economic Impact

In 2023, Absa demonstrated strong corporate governance, with 49 per cent of its management team being women and a notable 40 per cent of the board being female.

This commitment to diversity at the leadership level reflects the bank’s broader agenda of promoting gender parity across the organisation.

The economic impact of Absa's initiatives was also significant. The bank's total contribution to the economy rose from Sh372.76 billion in 2022 to Sh478.9 billion in 2023.

This included employee wages and benefits amounting to Sh11.7 billion and corporate tax payments rising to Sh16.2 billion. Moreover, payments to capital providers reached Sh8.4 billion, further illustrating Absa’s economic footprint.

Awards and Recognition

Absa's efforts have not gone unnoticed, with the bank winning several prestigious awards in 2023. Among these were the Best in Sustainable Finance and Best in Bank Operations categories at the Kenya Bankers Association (KBA) Sustainability Finance Awards.

The bank was also recognised as the 1st runner-up in promoting gender inclusivity and received the 2nd runner-up award for the Most Innovative Brand and Best Retail Bank.

Looking to the Future

As Absa Bank Kenya continues to implement its sustainability strategy, the focus remains on incorporating sustainable financing into its lending practices, expanding financial inclusion, and promoting green investments.

With an eye on 2030, Absa is working to align with the Central Bank of Kenya’s climate-related risk management guidelines while continuing to make meaningful contributions to Kenya's socio-economic development.

Absa’s sustainability journey is a testament to its commitment to creating long-term value for all its stakeholders while fostering a more inclusive and environmentally conscious future for Kenya and the broader region.

As the bank continues to invest in green finance, empower women and SMEs, and champion environmental sustainability, its future looks as bright as the initiatives it has set in motion.

Key 2023 Metrics:

Tree Planting: Over 700,000 trees planted with partners.

Sustainable Finance Allocation: Sh63 billion (84 per cent uptake).

Climate-Smart Agriculture Financing: Sh2 billion allocated.

Renewable Energy Projects: Sh2 billion invested in solar projects.

Women Empowered via SHE Programme: 35,000 women entrepreneurs.

Timiza Loans Disbursed: Sh21 billion to 1.5 million customers.

Economic Contribution: Sh478.9 billion total contribution.

Corporate Tax Payments: Sh16.2 billion.

Digital Literacy Support: 65 computer labs installed across schools.

Absa Bank Kenya is firmly positioning itself as a leader in the pursuit of a sustainable and inclusive future for all.