Sustainable finance in focus for Kenyan banks as Co-op Bank feted

 

 Coop Bank representatives display trophies won in various catgories at this year’s Sustainable Finance Catalyst Awards where Coop Bank was named Overall Winner. [Courtesy]

Co-operative Bank has been named the Overall Winner at the Kenya Bankers Association (KBA) 2024 Sustainable Finance Catalyst Awards.

This marks the fifth time in seven years that the bank has received this prestigious accolade. Co-op Bank previously won the overall title in 2017, 2019, 2022, and 2023.

The awards aim to highlight financial institutions that demonstrate a commitment to sustainable finance, which positively impacts the financial sector, the economy, and society at large.

Sustainable finance encompasses a range of financial services that promote investments in projects and companies that have positive environmental and social impacts. This includes funding for renewable energy, sustainable agriculture, and social enterprises, among others.

The Sustainable Finance Principles encourage banks to balance their pursuit of profit with long-term economic and social-environmental responsibilities.

By integrating sustainability into their business models, analysts say financial institutions can contribute to achieving broader goals such as the United Nations’ Sustainable Development Goals (SDGs), which address global challenges like poverty, inequality, and climate change.

This latest recognition adds to Co-op Bank's growing list of accolades for its robust sustainable finance practices. Evaluators assessed participating banks on key indicators, including contributions to Gross Domestic Product (GDP), business growth, job creation, and support for marginalized groups, notably women and youth.

The emphasis on inclusivity reflects a broader trend in sustainable finance, which seeks to ensure that the benefits of economic growth are shared equitably across society.

The bank’s group CEO Dr Gideon Muriuki emphasised the bank's commitment to sustainability.

“Sustainability is fully integrated into our business model, which stands on the three pillars of Economic Sustainability, Social Sustainability, and Environmental Stewardship," he stated.

Muriuki highlighted the bank's unique position as a financial institution predominantly owned by the 15 million-member Co-operative Movement, which spans all regions of Kenya.

"We are inclusive by design, enabling us to deliver shared prosperity today while fostering awareness to avoid activities that could jeopardize future generations," he added.

As Kenyan banks increasingly focus on sustainable finance, Co-op Bank's continued success sets a benchmark for others in the sector, reinforcing the importance of responsible banking practices in fostering economic growth and societal well-being.

The growing recognition of sustainable finance in Kenya reflects a global shift towards more responsible investment strategies, with banks playing a crucial role in steering capital towards projects that support sustainable development and mitigate climate risks.