Equity Bank Kenya has been recognized as the top global performer by the International Finance Corporation (IFC), a member of the World Bank Group, for the 2023 Climate Assessment for Financial Institutions (CAFI) Awards for Climate Reporting.
Equity Bank reported the highest number of transactions for climate-related financing among the
258 participating financial institutions globally. CAFI is a tool developed by the IFC to enable its
clients and partners across 210 countries to report on their financing activities for climate-related
projects.
Equity Bank Kenya supported a total of 47,593 households and businesses in adopting adaptive
and mitigating solutions to address the negative impacts of climate change. The support ranged
from climate loan facilities as low as KES 6,000 for purchasing energy-efficient cookstoves in the
retail sector to as high as Kes 8.54 billion to finance renewable energy distribution from
renewable sources, including hydro, geothermal, and wind. These efforts have resulted in an
overall reduction of 39,917.4 tons of CO2eq annually.
By October 2023, Equity Bank Kenya had disbursed Kes 24.7 billion as follows:
Climate adaptation and water efficiency – 66%
Energy efficiency and transport – 28%
Renewable energy – 6%
A significant proportion of the funding was used to support climate-smart agriculture, building
resilience for farmers and farming ecosystems, which aligns with the agriculture pillar and lead
the social and environmental transformation, another pillar of the Group’s Africa Recovery and
Resilience Plan.
Commenting on the recognition, Equity Group Managing Director and CEO Dr. James Mwangi
stated, “Equity is committed to playing a significant role in climate change mitigation and
adaptation by providing appropriate financing and capacity development that helps the region
decarbonize and build resilience. By being recognized as the Bank with the most transactions,
Equity is creating a broader impact and reach for local communities and businesses. The Bank
continues to work towards supporting Kenya’s goal of combating climate change by reducing its
carbon emissions by 32% by 2030 and building resilience, as outlined in the National Determined
Contribution.”
In 2019, Equity Bank Kenya entered into a partnership with the IFC for a $100 million facility for
onward lending to climate-related projects. Equity matched the IFC facility, demonstrating its
commitment to climate finance.
As of June 2023, IFC had committed $15.2 billion to climate-related projects through more than
210 emerging market financial institution partners, leveraging an additional $5.8 billion.
“CAFI continues to be a critical tool for accountability and progress in aligning financial flows
toward the goals of the Paris Agreement,” said Tomasz Telma, Global Director, Financial
Institution Group, IFC. “IFC’s work with banks and other financial institutions helps scale up
climate finance activities and measure investments earmarked for climate, vital for our clients to
realize their climate impact.”
Equity Group has been at the forefront of championing climate change adaptation and mitigation
among the continent’s private sector. In September 2023, when Kenya hosted the first Africa
Climate Summit, Dr. Mwangi led a delegation from the continent’s private sector in discussions
on how the sector can help drive Africa’s green growth agenda and climate financing.
“Africa’s potential for transformative sustainable development is immense, and as part of the
continent’s private sector, we are honored to be leading this charge. With 40% of the critical
minerals needed for the energy transition and almost 60% of the arable land required to address
global food insecurity, Africa holds the key to unlocking a sustainable future. By embracing smart
and responsible practices, we can harness these resources to create diversified wealth creation
opportunities that will empower our people and drive positive change across the continent,” he
added.
Equity’s commitment to managing climate change through the lens of people, climate and nature
is not just reflecting in its lending activities but also reflected in the work being done to reduce its
own environmental footprint and its commitment to sustainable development as reflected in its
twin-engine business model, which positions community well-being alongside business success.
The Group has continuously invested in financing energy and environment projects, food and
agriculture, health, education and leadership, enterprise development and financial inclusion, and
social protection as key pillars of its social impact initiatives.
Through its social impact investment arm, Equity Group Foundation (EGF), the Group has
facilitated the planting of 23.3 million trees to bolster Kenya’s forest cover. Additionally, Equity
has distributed 408,756 clean energy products to households and institutions, promoting the
transition from fossil and wood fuels. Furthermore, the bank’s climate-smart agriculture initiatives
have reached 3.8 million farmers, empowering them with sustainable farming practices.
Equity Group is set to play a crucial role as the implementing partner in the newly launched
Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM). The mechanism, introduced by
the UN’s International Fund for Agricultural Development (IFAD) and partners, aims to provide
tailored finance to support small-scale food producers/farmers and rural microenterprises in
Kenya, Rwanda, Tanzania, and Uganda in adapting to climate change. Equity Bank Kenya,
Rwanda, Tanzania and Uganda (subsidiaries of Equity Group Holdings), will contribute US$90
million to this initiative. IFAD will channel an additional US$90 million, with funding from various
sources, making a total of US$180 million dedicated to climate change adaptation loans. The
innovative financing model integrates blended finance and encourages private sector
participation through a risk-sharing mechanism, marking a pioneering effort in climate change
adaptation financing. The collaboration seeks to trigger systemic change in climate change
adaptation financing and reduce poverty and hunger in Eastern Africa.
About Equity Bank Kenya and Equity Group Holdings Plc:
Equity Bank Kenya is the largest banking subsidiary of Equity Group Holdings Plc with a footprint of
194 branches, spread across Kenya and is supported by 43,845 agents, 957,786 Pay With Equity
(PWE) Merchants, 25,605 Point-of-Sale (POS) Merchants and 343 ATMs.
Equity Group Holdings Plc is a non-operating holding company with banking subsidiaries in Kenya,
Rwanda, Tanzania, Uganda, South Sudan and Democratic Republic of Congo, a Commercial
Representative Office in Ethiopia and non-banking subsidiaries in Kenya that are engaged in
providing investment banking and stock-broking, insurance, custodial services, payment services and
telecommunication services.
Equity Group Holdings Plc is listed at the Nairobi Securities Exchange and other regional exchanges
with a market capitalization of KES. 1.34 trillion (USD 0.9bn). Equity Group Holdings Plc reported a
consolidated asset base of KES. 1.7 trillion (USD 11.4bn), deposits of KES. 1.21 trillion (USD 8.2bn)
and 8,155.0a customer base of over 18.9 million customers as at 30th September 2023. Equity Group
has a footprint of over 360 branches, 69, 656 Agents, over 950,000 Pay With Equity (PWE)
Merchants, 34,844 Point-of-Sale (POS) Merchants, over 700 ATMs and an extensive adoption of
digital and mobile banking channels.
For more information log on to website: https://equitygroupholdings.com
