Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Launched a collaborative tree planting initiative dubbed “Change The Story”, planting one million tree seedlings at Karura Forest.

Social Achievements

• Granted loan moratoriums and restructured loans amounting to KES 78 billion to corporate and retail customers.
• Disbursed over KES 300 billion in digital loans to SMEs and individuals.
• Waived bank charges and fees on mobile transfer and Pesalink cashless transactions.
• Waived all M-Shwari late payment fees, deferred rollover fees by 30 days and suspended CRB listing for 90 days.
• Donated KES 100M to the Kenya COVID-19 Emergency Response Fund.

Governance Achievements

• Completed mergers of all subsidiaries across the region.
• Consolidated core banking systems.
• Harmonized processes and procedures for better risk management.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic's impact on lives, livelihoods, and economies.
• Sharp contraction of economic activity across all sectors in Kenya.
• Rise in non-performing loans (NPLs) to 14.1% from 12.0%.

Mitigation Strategies

• Swift and comprehensive action to safeguard staff, customers, and community.
• Loan moratoriums and restructured loans.
• Enabled remote work for non-branch staff.
• Provided financial support to vulnerable support staff.
• Expanded access to medical resources.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Engagement
• Diversity & Inclusion
• Governance
• Employee Welfare
• Supply Chain Sustainability
• Green Financing

Environmental Achievements

• Planted 344,437 trees in 2023, cumulatively planting over 7 million trees since 2018.
• Achieved a 76.3% reduction in plastic used in corporate gifting.
• Recycled 34% of waste at HQs and pilot branches.
• Completely eliminated single-use plastic from operations.

Social Achievements

• Launched the sustainability transformation agenda “Change the Story” with 15 bold commitments.
• Allocated KES 100 million annually for community transformation and engagement.
• Provided scholarships worth KES 11.1 million.
• Boosted employee engagement scores to 88% (vs 82% in prior year).
• Maintained gender balance and diversity at a Male to Female staff ratio of 49:51.
• Planted 50,000 trees in Uganda in partnership with NFA.

Governance Achievements

• Launched the sustainability transformation agenda “Change the Story” with 15 bold commitments.
• Signed up for UN Global Compact membership.
• Implemented a robust risk management strategy and controls to ensure shareholder value is secured and maximized in a sustainable manner.
• Conducted a comprehensive supplier assessment to evaluate the representation of women and youth-owned businesses within the supply chain.

Climate Goals & Targets

Environmental Challenges

• Elevated credit and market risks due to high interest rates, heightened inflationary pressures, and global uncertainties.
• Deterioration in the quality of assets, risking higher delinquencies.
• Depreciating local currency and constrained dollar liquidity.
• Evolving regulatory environment and increased compliance costs.
• Cybersecurity threats.
• Talent related challenges in attracting and retaining staff in specialized roles.

Mitigation Strategies

• Implemented a more cautious approach to undertakings and sharper risk analytics.
• Strengthened balance sheet and maintained a strong capital position.
• Implemented rigorous credit risk assessment processes and a risk-based pricing approach.
• Strengthened the control environment and built a collective understanding of risk culture.
• Invested in cutting-edge technology for cybersecurity.
• Increased investment in staff training and upskilling.

Supply Chain Management

Responsible Procurement

• Green supply chain initiatives
• Targeting at least 30% of general services procurement spend to women and youth.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Technological change

Opportunities

• Green and sustainable financing
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: IIRC Integrated Reporting Framework

UN Sustainable Development Goals

• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Green energy leasing solutions
• Electric vehicle financing

Awards & Recognition

• Four awards in 2023 under Customer Experience
• 2nd Runners up under the Great Workplace Environment category at the 2023 Employer of the Year Awards