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Equity Bank Kenya has been acknowledged as the top global performer by the International Finance Corporation (IFC), a member of the World Bank Group, in the 2023 Climate Assessment for Financial Institutions (CAFI) Awards for Climate Reporting. Out of 258 participating financial institutions worldwide, Equity Bank reported the highest number of transactions related to climate financing. The CAFI tool, developed by the IFC, facilitates reporting on climate-related projects by its clients and partners across 210 countries.
Equity Bank Kenya’s efforts included supporting 47,593 households and businesses in adopting adaptive and mitigating solutions for the impacts of climate change. The support ranged from small climate loan facilities for purchasing energy-efficient cookstoves to substantial financing for renewable energy distribution from hydro, geothermal, and wind sources. These initiatives led to an annual reduction of 39,917.4 tons of CO2eq by October 2023.
The bank disbursed a total of Ksh.24.7 billion, with 66% allocated to climate adaptation and water efficiency, 28% to energy efficiency and transport, and 6% to renewable energy. A significant portion of the funding supported climate-smart agriculture, aligning with the bank’s commitment to environmental and social transformation.
Equity Bank’s Managing Director and CEO, Dr. James Mwangi, expressed the bank’s dedication to climate change mitigation and adaptation, emphasizing its broader impact on local communities and businesses. The bank is actively working toward supporting Kenya’s goal of reducing carbon emissions by 32% by 2030, as outlined in the National Determined Contribution.
In 2019, Equity Bank Kenya partnered with the IFC for a $100 million facility dedicated to lending for climate-related projects, demonstrating its commitment to climate finance. The IFC has committed $15.2 billion to climate-related projects through over 210 emerging market financial institution partners as of June 2023.
Equity Bank’s leadership in climate change adaptation extends beyond financing, with initiatives to reduce its own environmental footprint. Through its social impact investment arm, Equity Group Foundation (EGF), the bank has facilitated tree planting, distributed clean energy products, and implemented climate-smart agriculture initiatives.
Equity Group is set to play a pivotal role as the implementing partner in the Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM), a collaborative effort with the UN’s International Fund for Agricultural Development (IFAD) and partners to provide tailored finance for climate change adaptation in Eastern Africa. The bank, along with its subsidiaries in Kenya, Rwanda, Tanzania, and Uganda, will contribute US$90 million to this innovative initiative aimed at triggering systemic change in climate change adaptation financing and reducing poverty and hunger in the region.
