Standard Chartered Kenya: Mobilizes Sh97 Billion in Sustainable Finance

• Standard Chartered Bank Kenya has mobilized over Sh97 billion in sustainable finance since 2021.
• The funding has supported renewable energy projects, affordable housing schemes, and women-led businesses among others.
• The bank has adopted the Central Bank of Kenya's Green Finance Taxonomy and Climate Risk Disclosure Framework to assess climate-related risks.
• Standard Chartered's Kenyan operations have reduced greenhouse gas emissions by 9.7 percent during the year.

We have continued to support our clients in their sustainability journeys through sustainable finance solutions while strengthening our own environmental performance.

Kenya's banking sector is increasingly playing a crucial role in financing the country's climate and development goals. Standard Chartered Bank Kenya has been at the forefront of this trend, mobilizing over Sh97 billion in sustainable finance since 2021. This funding has supported various initiatives, including renewable energy projects, affordable housing schemes, and women-led businesses. The bank's efforts are part of a broader push to promote financial inclusion and support Kenya's transition to a low-carbon economy.

Standard Chartered has taken a significant step in incorporating climate-related risks into its credit assessments by aligning with the Central Bank of Kenya's Green Finance Taxonomy and Climate Risk Disclosure Framework. This framework requires lenders to assess the climate risk associated with their clients' projects, ensuring that they are not inadvertently financing high-risk activities. The bank's adoption of this framework sets a precedent for other lenders in Kenya to follow suit, potentially impacting their clients' lending decisions.

In addition to its sustainable finance initiatives, Standard Chartered has made significant progress in reducing its own environmental footprint. The bank's Kenyan operations have seen a 9.7 percent reduction in Scope 1 and Scope 2 greenhouse gas emissions during the year. Energy consumption, water use, and waste sent to landfill have also declined, with the bank achieving an impressive 84 percent landfill diversion rate through recycling efforts.

Lawyers should note that Standard Chartered's adoption of the Central Bank of Kenya's Green Finance Taxonomy and Climate Risk Disclosure Framework may set a precedent for other lenders in Kenya to incorporate climate-related risks into credit assessments, potentially impacting their clients' lending decisions.

Source: Original reporting via Capital FM