Nairobi- Thursday, 7th September,2023: The Kenyan banking industry showcased to the African continent and the globe at large its progress in adopting sustainable banking practices at the launch of the Climate-Related Financial Disclosures Template.
Launched on Day IV of the Africa Climate Week, the Climate-Related Financial Disclosures template based on the four pillars of the Taskforce on Climate related Financial Disclosures (TCFD) framework: Governance, Strategy, Risk Management and, Metrics & Targets, provides guidance to banks in appropriately and comprehensively reporting their respective institution’s climate-related risks and opportunities. By adhering to these disclosures, the banks can enhance transparency and communicate their approach to climate-related risks and opportunities.
Speaking during the launch on Thursday, KBA CEO, Dr. Habil Olaka said: “Through our Sustainable Finance Initiative (SFI) e-learning training, we have been able to sensitize our members to make lending decisions that benefit the environment, society, and economy. So far, and since 2015, our program has reached more than 45 thousand bank employees (including those that have since left the industry). We are glad to take another bold step in promoting transparency in our industry, through the launch of Banks’ Climate Related Financial Disclosures template”.
This tool allows all commercial banks licensed and regulated by the Central Bank of Kenya to comply with the Central Bank of Kenya Guidance on Climate-Related Risk Management issued on 15th October 2021. The template is designed to align with the 11 recommended disclosures specified by TCFD within governance, strategy, risk management, and metrics and targets, areas.
On his part, Head of Conservation Programmes at WWF-Kenya, Jackson Kiplagat, said, “This disclosure template launch is an important milestone towards delivering sustainable finance within the banking sector in the country. Adapting to nature related risks can actually drive innovation within the banking sector and sustainable finance offers such an opportunity for innovation to be able to respond to these climate related risks.”
The reporting template was collaboratively developed through Kenya Bankers Association’s Sustainable Finance Initiative (SFI) Working Group with funding support from World Wild Fund for Nature (WWF).
About Kenya Bankers Association
KBA (www.kba.co.ke) was founded on 16th July 1962. Today, KBA is the financial sector’s leading advocacy group and banking industry umbrella body that represents total assets in excess of USD 45 billion. KBA has evolved and broadened its function to include advocacy on behalf of the banking industry, and championing financial sector development through strategic projects such as the launch of the industry’s first P2P digital payments platform PesaLink. In line with the Government’s policy on public-private partnerships, KBA and Central Bank of Kenya have implemented key projects such as modernization of the National Payments System through the Automated Clearing House, implementing the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative. The KBA members are comprised of commercial banks and deposit taking microfinance banks.
