Equity Bank leads the way in green initiatives and clean energy adoption

As the world grapples with the challenges of climate change, the need to transition to clean energy solutions has become more pressing than ever. From reducing greenhouse gas emissions to mitigating the impact of natural disasters, clean energy has the potential to transform our planet for the better.

Here in Kenya, Equity, one of Kenya’s largest banks with footprints across the East African region has been at the forefront of implementing green initiatives that aim to protect the environment and promote sustainable development. The bank is playing a crucial role in encouraging the adoption of clean energy solutions serving to create wealth and conserve the environment.

Through one of its flagship Energy and Environment Pillars which was launched in 2014, Equity Group is driving programs aimed at increasing access to, adoption of, and usage of clean energy technologies in Africa. With a comprehensive approach to addressing environmental challenges while promoting wealth creation, particularly for households, institutions, and industries, Equity aims to enhance climate change adaptation, mitigation, and resilience building.

One of the standout initiatives under this pillar is Green Financing, where Equity Group channels resources into areas focusing on renewable energy, energy efficiency, climate-smart agriculture, green buildings, water resource management, e-mobility, and circular economy solutions.

Equity Bank recognizes that by supporting these areas, it is facilitating access to clean energy solutions through innovative financing allowing people to acquire the technologies that reduce carbon dioxide and methane emissions while positively impacting people’s health and incomes.

To scale this initiative, Equity launched the EcoMoto Program, which finances customers and allows them access to clean energy. Here, Equity is focusing on capacitating communities to adopt the use of renewable energy solutions. Starting at the household level, it has built awareness within households of the benefits of transitioning to solar lanterns and solar home systems as a clean alternative for lighting. Cleaner cooking solutions are also provided through the promotion of electric cooking, efficient biomass stoves and Liquified Petroleum Gas (LPG) as a cleaner transition fuel.

This has already moved to the institutional level, where Equity is assisting learning and health facilities to adopt cleaner cooking technologies and fuels. With 97% of schools in Kenya cooking on firewood and charcoal and requiring over one million metric tons of biomass per year.

Energy transition in these institutions not only has a positive and immediate environmental impact but also helps create a future generation of environmental champions through the learners. In the pilot phase, 77 institutions had been facilitated to transition to clean energy, providing a solid basis for scaling up the solution.

To compensate for the trees lost when harvested for fuel, Equity has set an ambitious goal of planting 35 million trees by 2024, aligning with government efforts to increase the forest cover to 30% by 2027. This has been done hand in hand with the waste management program where the bank actively engages in Circular Economy initiatives, providing financing and connections to credible technical partners involved in waste management ecosystems. These initiatives include the development of bio-digesters for cooking and heating, the conversion of agricultural waste into briquettes, and the recycling of plastics into valuable products. This will go a long way in reducing the environmental impact of waste while promoting a more sustainable and circular economy while reducing carbon footprint.

Also noteworthy is how Equity is now increasingly working with the commercial and industrial sector (C&I) to support their energy transition requirements focusing on renewable energy and energy efficiency. In addition to reducing emissions, businesses are saving significantly through investments in energy-efficient production (less energy per unit of output) by having a significant amount of renewable energy in their energy mix. Industries that generate steam for their production process are supported to transition to solar and sustainable biomass as part of greening their production processes.

According to the Group’s 2022 sustainability report, it shall be increasing investments in this space through capacity building, developing appropriate financing models and structures, and onboarding partnerships with technology providers.

Meanwhile, its commitment to the Productive Use of Clean Energy (PUE) is evident in its support for mini-grids in areas without access to the main grid. These mini-grids are harnessed for activities like water pumping and irrigation, aeration for aquacultures, refrigeration, cooling, and poultry lighting, which not only empowers communities but promotes economic development.

So far, the Equity, through these initiatives has managed to plant 22.8 million trees, distribute 398,060 clean energy products, reduce 200,000 metric tons of CO2, and distribute $14 million worth of clean energy products. These figures underscore the tangible contributions Equity Bank has made to environmental conservation and clean energy adoption.

“We believe that by investing in green initiatives, we are not only enhancing our social and environmental responsibility but also creating opportunities for economic growth and development for our customers and communities,” said Dr. James Mwangi, the CEO and Managing Director of Equity Group Holdings Plc., during the Groups’s 2022 sustainability report launch.

He added that Equity Bank is committed to continue supporting the adoption of clean energy in line with the global agenda of achieving universal access to affordable, reliable, sustainable, and modern energy by 2030.

“We are proud to be part of the global movement towards a low-carbon future that is resilient and inclusive,” he added while emphasising how the bank’s initiatives represent a holistic and far-reaching commitment to promoting clean energy adoption, environmental conservation, and climate resilience in Africa.

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