KCB Group has disbursed KES 336 billion worth of loans in the last two years for projects that are eco-friendly as the lender deepens its push for sustainable finance.
The bank says in its Progressive Action for Sustainable Development report that it cut its carbon footprint by 11.25% on its premises and reduced resource consumption by 17%.
Business Daily reports that during the period, KCB grew its green portfolio from 4% of the loan book in 2020 to 8.4% last year, mainly in real estate, renewable energy, transport, manufacturing, and agriculture sectors.
In April 2021, the lender joined other global banks that represent over 40% of global banking assets by signing onto the Net Zero Banking Alliance (NZBA), committing to align its lending portfolio towards achieving net zero carbon emissions by 2050.
Under the commitment, the bank does not finance projects which carry an unmitigated environmental and social risk that have increased the frequency and magnitude of extreme weather events.
The lender says it plans to translate a quarter of its total loan portfolio to green finance by 2025.
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