Equity Bank recognised by International Finance Corporation

By Peter Ochieng

Equity Bank Kenya has been recognized as the top global performer by the International Finance Corporation (IFC), for the 2023 Climate Assessment for Financial Institutions (CAFI) Awards for Climate reporting.

IFC is a member of the World Bank Group. Equity Bank reported the highest number of transactions for climate-related financing among the 258 participating financial institutions globally.

The bank 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 Sh6,000 for purchasing energy-efficient cookstoves in the retail sector, to as high as Sh8.54 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.

According to a release shared on Tuesday, 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.

Reacting to 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."

Through its social impact investment arm, Equity Group Foundation (EGF), has facilitated the planting of 23.3 million trees to bolster Kenya's forest cover.

Additionally, the bank 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.