Stanbic Channels Over Ksh 100 Billion To Sustainability

Stanbic Holdings Plc (the Group) channeled over KES100B to projects, solutions, and initiatives that promoted sustainability, MSMEs, and trade in Kenya and South Sudan in 2023.

Tied to its purpose to drive growth in Kenya and South Sudan, the Group invested in green projects, facilitated trade and investment, developed sustainable finance solutions, improved financial inclusion, and empowered the community through health, education, and SME initiatives.

This was announced during the launch of the Group’s 2023 Sustainability Report which details how the Group generated, sustained, and maximized positive impact on the society, environment, and economy during the year.

Under the Environment pillar, the Group supported climate change mitigation and adaptation, which included the issuance of USD122M (approximately KES15B) sustainability-linked loans. This was in addition to training clients on ESG and recycling 95% of waste within the Bank.

Under the Social pillar, the Group accelerated the growth of small businesses, advanced access to affordable housing, implemented a school feeding program, provided free cancer screenings, and enhanced digital literacy across the country. These initiatives created jobs, drove income growth, and improved access to quality education and health services.

Under the Governance pillar, the Group strengthened its internal governance framework with diversity and inclusion integrated across the Group. The Group achieved 38% female representation in senior management and at the Board level.

Commenting on this, Dr Joshua Oigara, Chief Executive Stanbic Bank Kenya and South Sudan, stated, ‘’ Sustainability is a core element of our operations. In the past year, we made significant progress in integrating ESG principles into our core operations, which aligns with our goal to build a sustainable future for all. We remain committed to making a meaningful impact in Kenya and South Sudan through sustainable and inclusive solutions. In the next three years, our focus will be on sustainable financing that empowers marginalized groups, accelerates socio-economic development, and contributes to climate adaptation and mitigation. We will also drive diversity and inclusion in our business, all while maintaining the highest standards of sustainability reporting.”

Adding to this, Priscilla Was, the Head of Sustainability at Stanbic Bank said, ‘’ We have embedded sustainability in our strategy and geared our processes, solutions, and initiatives towards creating shared value for our stakeholders. As of the end of 2023, green/sustainability-linked facilities comprised about 8 percent of the Group’s lending portfolio. In 2024, we are focused on expanding our green lending portfolio, entrenching financial inclusion, deepening our climate action, and enhancing our ESG alignment across all business units. We will also continue to leverage our robust Environmental and Social (E&S) risk management framework to ensure that we add value to the society sustainably and responsibly.”

To drive shared value, the Group works closely with clients and other stakeholders, including employees, partners, regulators, government, and the community, to mainstream sustainable practices. In 2023, the Group scaled its impact initiatives via partnerships with stakeholders in government, the private sector, Development Finance Institutions, and civil society. This included partnerships with USADF and GIZ to drive SME growth and economic empowerment. To date, the Stanbic Foundation has provided concessional loans amounting to KES 119 million.

Select highlights from the 2023 report include:

• KES 40B loans advanced to small businesses, bolstering their capacity to grow and create jobs.
• KES 635M advanced in affordable housing.
• 6.5% of procurement spend was to women-owned vendors.
• 95% of waste is recycled.
• 38% women representation in Senior Management
• 10,637 beneficiaries screened for cancer, free of charge.
• Appointed sole lender of a USD 87M project finance facility to support Kenya’s Road Annuity Program, which aims to improve the country’s infrastructure and national road network.
• Partnered with NBA Africa, Stanbic Bank, and Luol Deng Foundation (LDL) to construct a FIBA standard outdoor basketball court in Juba, which will provide a safe space for thousands of boys and girls to play the game and pave the way for the next generation of South Sudanese players.

As part of the event, Stanbic also awarded fourteen winners under the 4th cohort of the United States African Development Foundation (USADF) and Stanbic Kenya Foundation (SKF) Grant Fund, who will cumulatively receive USD 700,000. Under the Accelerate Program Stanbic continues to provide funds (grants) and catalytic funds as well as access to markets to position Kenyan businesses for success while addressing the skills gap in the country by boosting entrepreneurship and employability of citizens.

Stanbic Holdings focuses on 4 impact areas: Enterprise growth and job creation, Infrastructure development and the just energy transition, Climate change mitigation and resilience, and Financial inclusion. Stanbic also invests heavily in Corporate Social Investment (CSI) programs, working with partners in government and society to support priorities such as access to education and health, among others. These areas are aligned to select UN SDGs that address pressing societal challenges and promote inclusive and sustainable development.

The Sustainability Report has been prepared by the various global and local sustainability reporting and disclosure standards including Global Reporting Initiative (GRI) Standards and International Sustainability Standards Board (ISSB) IFRS S1 & S2. The Group is also guided by various local and international instruments and frameworks on sustainable banking, namely, the Nairobi Securities Exchange ESG Disclosures Guidance Manual, Central Bank of Kenya Guidance on Climate-Related Risk Management, United Nations Principles for Responsible Banking and UN Global Compact principles.

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