#5
ABSA BANK
Absa Bank Kenya stands out as a leading financial institution in the East African region, backed by the strength of its parent company, Absa Group, headquartered in South Africa. The bank has cemented its place as a key player in Kenya’s banking sector, providing innovative financial solutions while making strides in business sustainability.
With a rich history that traces back to 1916, Absa Bank Kenya officially rebranded in 2020, marking a new era of operations under the Absa Group umbrella. This transition signaled not only a change in identity but also a renewed focus on environmental, social, and governance (ESG) principles, which are now at the core of its business strategy.
Absa’s commitment to sustainability is detailed in its 2023 Sustainability Report, which outlines how the bank is embedding ESG principles into its operations and business decisions. Abdi Mohamed, Managing Director (MD) of Absa Bank Kenya, echoes the bank’s purpose, stating, “Our sustainability journey is rooted in our commitment to empowering Africa’s tomorrow, together with our communities and stakeholders.” Under Mohamed’s leadership, the bank is not only contributing to financial growth but it is addressing critical ESG challenges facing Kenya today.
One of the key pillars of Absa’s ESG strategy is its focus on environmental sustainability. In 2023, the bank made significant progress in reducing its environmental footprint, particularly through energy efficiency and green financing initiatives. The bank achieved an 8.3 percent reduction in energy consumption by retrofitting 85 branches with energy-saving technologies, reflecting its broader ambition to reach net-zero carbon emissions by 2040.
Absa’s efforts to combat climate change also extend to its investment in green projects. In partnership with Sun King, the bank committed KES 2 billion towards solar-powered projects in off-grid communities, bringing renewable energy to underserved regions. Additionally, Absa has allocated over KES 26.1 billion to climate financing, targeting areas such as energy efficiency and climate-smart agriculture. “Our responsibility to the environment is non-negotiable. We must ensure that our operations and investments support a greener future for Kenya,” Abdi affirms, underscoring the bank’s dedication to driving impactful environmental change.
The bank’s green building initiatives are another testament to its commitment to sustainability. Absa has incorporated green design into its properties, with five buildings already achieving EDGE (Excellence in Design for Greater Efficiencies) certification. These efforts not only reduce the bank’s environmental impact but also set a precedent for sustainable construction in the region.
Further, in 2023 alone, Absa planted over 700,000 trees as part of its environmental restoration efforts.
On the other hand, Absa’s social impact is driven by a strong focus on community empowerment, human rights, and employee well-being. The bank has been recognised as a Top Employer in Kenya and across Africa for two consecutive years, a testament to its commitment to fostering a supportive and inclusive work environment. With various programs dedicated to employee mental and physical health, as well as diversity and inclusion, Absa ensures that its workforce thrives in a dynamic and challenging environment.
The bank’s community investment initiatives are equally impressive. In 2023, Absa provided access to finance to over 1 million individuals across Kenya. Furthermore, Absa’s Ready to Work program reached more than 20,000 young people, equipping them with essential skills for the workplace. “At Absa, we believe that sustainable business growth can only be achieved by supporting the communities we serve. Our focus on empowering individuals, especially the youth, is key to creating long-lasting social impact,” remarks Mohamed on the bank’s social agenda.
Strategic partnerships play a crucial role in Absa’s social sustainability initiatives. The bank has collaborated with the Eco-Business Fund to develop a technical assistance program aimed at reducing post-harvest losses in key agricultural value chains, further supporting Kenya’s agricultural sector and food security.
Furthermore, strong governance and ethical business practices are foundational to Absa’s operations. In 2023, the bank enhanced its governance framework to ensure rigorous oversight of its sustainability strategy, with the Board of Directors playing an active role in managing ESG and climate-related risks. Absa’s governance structure is designed to promote transparency, accountability, and ethical behavior, ensuring that all stakeholders are aligned with the bank’s sustainability goals.
Aligned with regulatory guidelines from the Central Bank of Kenya (CBK) and the Nairobi Securities Exchange (NSE), Absa has integrated climate-related risks into its overall risk management framework. The bank also adopted the Global Reporting Initiative (GRI) framework for its sustainability reporting, which highlights its commitment to transparency and accountability. “Governance is at the heart of everything we do. We are dedicated to maintaining the highest ethical standards while delivering sustainable value to our stakeholders,” Mohamed says, emphasising the bank’s focus on strong governance as a pillar of its ESG efforts.
Absa has in addition made strides in fraud prevention, implementing training programs for employees and launching customer awareness campaigns to mitigate fraud risks. These initiatives have contributed to a marked decrease in fraud cases, further strengthening the bank’s reputation for integrity and trustworthiness.
As Absa continues to grow, the bank’s focus on ESG will remain a cornerstone of its strategy. With a strong leadership team and a clear commitment to sustainability, Absa Bank Kenya is well-positioned to lead the financial sector into a future that prioritizes both business success and positive social impact. The future looks bright for the Absa Bank Kenya team as it continues to walk the talk when it comes to ESG.
AUTHOR: MARILENE MERCY
EDITOR: KAREN NDUKU
