Kenya’s banking industry will start to implement the Sustainable Finance initiative on Lending next year after they adopted its Guiding Principles in 2015.
Judith Sidi, KCB Group’s Head of Corporate and Regulatory Affairs, on Thursday in Nairobi at a True Value Sustainability forum organized by Safaricom said that will begin after the completion of the capacity building of the bank personnel to implement the standards within their banks and realise the vision of sustainable finance. KCB Group adopted the model in 2008.
“All the 48 banks in Kenya adopted the Sustainable Finance Initiative (SFI) Guiding Principles that will guide in balancing their business goals with the economy’s development priorities and socio-environmental concerns. We want to know what the impact of the money being lent out is. Which sectors do you lent to? How are the society members being affected? Sustainability encompasses everything not CSR,” She says.
She said most corporates and businesses in Kenya are adopting Sustainability Reporting which presents a holistic account of their ecosystem like governance and values, innovation and climate change.
“True value and sustainability is the additional value businesses are bringing to the economy looking beyond financials.”
Neil Morris, Director Climate Change and Sustainability KPMG South Africa, is of the view that everyday business operations unlike their corporate social responsibility initiatives bring more value in the long term to its shareholders. “There is value and opportunity in responsibility beyond the next quarter’s results, what is good for people and the world, can also be good for the long-term bottom line and shareholder value.”
He cautioned businesses to focus more on the economic and social component value rather than to their earnings.
“Business must take a leadership role in the development of solutions that will help to create a more sustainable future. By leveraging its ability to enhance processes, create efficiency, manage risk and drive innovation, business will contribute to society and long-term economic growth,” he adds.
The government was urged to commit itself on the financing of the SDGs to bridge the gap that was witnessed during the implementation of the Millennium Development Goals to make progress.