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ABSA
Absa Bank Kenya, a vital subsidiary of the Absa Group, is a beacon of progressive financial services deeply rooted in African soil. Its purpose statement, “Empowering Africa’s Tomorrow, Together… One Story at a Time,” encapsulates not only a mission but also a commitment to fostering change. Absa’s commitment to finding local solutions for local challenges is reflected in its retail, business, corporate, investment, and wealth management solutions, as well as its core values. As Absa moves forward, it does so with a deep commitment to Environmental, Social, and Governance (ESG) principles. It is more than a bank; it is a force for good, earning trust, shaping societies, promoting sustainability, and driving thought leadership, embodying the essence of impactful ESG practices.
Absa is a leader in environmental sustainability, demonstrating its commitment through concrete actions. In September 2020, the bank became Kenya’s first bank to join the Kenya Green Building Society as a champion for programs that promote the green economy by reducing pollution and improving people’s lives while promoting economic progress. The bank promotes the circular economy by reducing waste streams from its operations. This includes the recycling of e-waste, furniture, billboards, plastic, and steel waste. As part of this, the bank replaced previously used water dispensers with eco-friendly water filtration technology, eliminating the use of plastic water bottles and lowering environmental impact.
Absa is also actively supporting the Kenyan Government’s initiative to plant 10 million trees across the country by 2025. This initiative, in collaboration with the Ministry of Environment and Forestry, fits perfectly with the bank’s sustainability agenda, which aims to increase the country’s forest cover to 10 percent.
Absa’s unwavering commitment to fostering a positive environmental impact earned the institution recognition at the seventh edition of the Sustainable Finance Initiative (SFI) Catalyst Awards in November 2023, organised by the Kenya Bankers Association (KBA). During the prestigious event, Absa clinched top honours in various categories, including Best in Bank Operations and Best in Sustainable Finance, solidifying its position as the third overall best bank. Notably, the bank secured the second spot in the Best Bank for Promoting Gender Inclusivity category and ranked third in the Most Innovative Bank category.
Expressing pride in these achievements, Abdi Mohamed, Absa’s Managing Director (MD), remarked, “As a bank, we believe in the power of sustainable finance to generate positive change, and these awards demonstrate our dedication to making a positive influence on society and the environment in which we operate. We remain committed to advancing sustainable development throughout the country.”
As part of its pivotal agenda, Absa committed in October 2023 to doubling its sustainable finance allocation to KES 120 billion within three years, aligning with its refreshed sustainability commitment. In 2023 alone, the bank extended approximately KES 60 billion in sustainable finance, encompassing elements of green finance and inclusive finance.
Looking ahead, Abdi articulated the bank’s ambitious plans to significantly expand its investments. “Our ambition is to continue significantly expanding our investment in this space as we scale our support for sustainable development across all our economic sectors. You can therefore expect to see us playing an even bigger and bolder role, specifically in renewable energy, energy efficiency, green building, and climate-smart agriculture sectors in the days ahead,” he opined.
In a significant milestone in 2022, Absa received the International Finance Corporation’s (IFC) Excellence in Design for Greater Efficiencies (EDGE) global Certification. This recognition acknowledged the bank’s commitment to incorporating green building technologies in compliance with global standards.
Furthermore, the bank has invested nearly KES 45 million in retrofitting its outlets, including branches such as Nkrumah, Kisii, Queensway, Westend HQ, and Bishops Gate Head Office. Through this redevelopment initiative, energy-efficient LED lights were installed, substantially reducing the bank’s carbon footprint. The renovated buildings now feature water efficiency enhancements like low-flow taps, dual or 6-litre single flush toilets, low-flow urinals, and eco-friendly bottleless water dispensers. These investments have translated into significant cost savings, with Absa enjoying up to a 30 percent reduction in energy costs and a 33 percent reduction in water costs, equating to savings of up to KES 25 million annually.
For its suppliers, the bank is committed to increasing their understanding of corporate sustainability and ethical business practices. The bank offers training programs and progress-tracking tools to help suppliers improve their sustainability performance and contribute to the achievement of the SDGs.
As part of its shared value strategy, the bank promotes diversity and inclusion while also supporting education and skill development and providing inclusive financial services to women, young people, and small and medium-sized enterprises (SMEs). The bank provides demand-driven and innovative interventions for youth that align with national imperatives, addressing their employability needs and supporting them in envisioning their futures. The bank has created initiatives such as Ajira Digital and Ready-to-Work through collaborations with organisations such as the Kenya Private Sector Alliance (KEPSA), which equip Kenyan youth with digital skills and connect them with job opportunities.
Furthermore, Absa’s approach to employee development goes beyond the norm. Recognising employees as valuable assets demonstrates the bank’s deep commitment to nurturing its workforce. This commitment is manifested in tangible actions, such as Absa’s significant investment in ongoing training and skill enhancement, ensuring that its employees are at the forefront of industry trends and best practices. The bank’s commitment to fostering a culture defined by the ‘Absa Kenya Way’ serves as a guiding philosophy. Absa empowers its employees to streamline workflows, improve efficiency, and provide superior client service by making processes easier, faster, and better. This culture of continuous improvement also strengthens Absa’s overall operational excellence, setting high standards in the banking industry.
Additionally, Absa serves as a guiding light of equality, implementing policies that promote gender and marginalised group inclusion, ensuring not just social inclusivity but also fostering economic viability.
Absa is also a model of good corporate governance practices, exemplifying ethical leadership, transparency, and accountability in all aspects of its operations. The bank’s ethical leadership is demonstrated by its commitment to incorporating ESG considerations into its customer onboarding process, ensuring that responsible business practices are a fundamental aspect of its services. Transparency and accountability are ingrained in Absa’s culture, as evidenced by its ongoing efforts to align its ESG policy with internationally recognized standards such as the International Finance Corporation (IFC) performance standards, United Nations Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking, and Women Empowerment Principles. These initiatives demonstrate the bank’s commitment to upholding the highest ethical standards and promoting transparency in its interactions with stakeholders.
Absa’s financial strength, combined with its extensive local and international resources, has helped it maintain its position as the market’s leading provider of financial services for over a century. This consistent financial performance has not only instilled confidence in the bank’s shareholders but has also earned the bank respect and trust throughout the industry. Absa’s interactions with stakeholders are marked by openness, active participation, and a genuine desire to understand and address their needs.
Absa Bank Kenya, a pioneer in sustainable banking, integrates progressive financial services, environmental stewardship, social responsibility, and ethical governance to ensure a vibrant and responsible future.
