KCB Group seeks long-term business success and sustainability by contributing towards economic, social and environmental development. KCB Group seeks to create value for a wide range of stakeholders, including shareholders, employees, customers, suppliers, communities, academia and Government.
The purpose of this policy is to detail KCB Group’s aspirations on procedures to integrate Environmental and Social Governance through incorporating sustainability approach into the operations of KCB Group Operating Entities; Internal eco-efficiency through the KCB Group Green Agenda; Clients’ climate impact improvement through UNEP-Fi Principles of Responsible Banking and Central Bank Guidance on Climate Related Risk Management; KCB Group’s Sustainability reporting; as well as on climate change including carbon credit and trading.
KCB Group is committed to complying with legislation and regulations that enhance economic development and protect communities and the environment. The operations, products and services of KCB Group Operating Entities shall promote the dignity of communities and safeguard the environment. KCB Group Operating Entities shall continually endeavour to develop sustainability performance management in line with international best practice.
The Sustainability Policy is applicable to KCB Group. It specifically applies to the operations and activities of KCB Group Operating Entities, and specifically to:
KCB Group Plc Board, KCB Group Operating Entities, Management and staff shall adhere to the Sustainability Policy standards and guidance provided in this policy.
KCB Group Sustainability aspirations - KCB Group shall be a sustainable Organisation. Sustainability is about ensuring long term business success while contributing towards economic and social development, a healthy environment and a stable society. Put succinctly, sustainability is anchored on 3Ps i.e. Planet, People and Profit. Sustainability is creation of value for a wide range of stakeholders, including shareholders, employees, customers, suppliers, communities, academia and Government, with particular consideration for the needs of future generation.
Social and Environmental Assessment and Management System - KCB Group shall identify and assess social and environment impacts, both adverse and beneficial, in projects to be financed. KCB Group shall avoid environmental and social risk from investment projects, or where avoidance is not possible, minimize, mitigate, or compensate for adverse impacts on workers, affected communities, and the environment. KCB Group shall ensure that the impacts are well monitored and reported through out the tenor of the Bank’s engagement. In addition, KCB Group shall ensure that affected communities and key stakeholders are appropriately engaged directly and through a grievance mechanism on issues that could potentially affect them and to promote improved social and environment performance of companies through the effective use of management systems. Refer to SEMS Policy for more details.
Labour and Working Conditions - KCB Group shall ensure that business partners of KCB Group Operating Entities including suppliers, and projects financed, promote fair treatment, non-discrimination and equal opportunity of workers and compliance with national labour and employment laws.
Environmental Responsibility - KCB Group shall avoid or minimize adverse impacts on human health and the environment by avoiding or minimizing pollution from project activities financed by KCB Group Operating Entities and through their business partners including suppliers. KCB Group shall protect and conserve biodiversity and promote the sustainable management and use of natural resources through the adoption of practices that integrate conservation needs and development priorities in KCB Group Operating Entities financed projects and internal business processes.
Health, Safety and Security - KCB Group shall avoid or minimize risks and impacts on the health and safety of the local community during the project life cycle from both routine and non-routine circumstances in KCB Group Operating Entities financed projects and our internal business processes. KCB Group shall ensure safeguarding of personnel and property is carried out in a legitimate manner that avoids or minimizes risks to the community’s safety and security.
Sustainability Reporting - KCB Group shall comprehensively enhanced information and data disclosure for both external and internal stakeholders. Reports shall include disclosures on KCB Group Operating Entities Financial, Economic and Socio-environmental performance as per adopted Global Reporting Initiative (GRI) framework and UN Principles for Responsible Banking (PRB).
Integrated Reporting - the Group shall annually communicate about its strategy, governance, performance and prospects, in the context of its external operating environment, leading value creation in the short, medium and long term with keen adherence to the regulatory requirements as envisioned in the international integrated reporting framework and other national regulations.
Partnerships - Through partnerships with like-minded institutions, the Group shall contribute to society and environmental considerations by providing solutions aimed at enhancing service delivery to citizens in the region.
Industry approach to Sustainable Finance Initiative (SFI) Principles - KCB Group Operating Entities shall uphold their respective Industry commitment and sustainability statements. KCB Group Operating Entities shall adopt Sustainable Finance as a core requirement that includes Economic Sustainability, Social Sustainability and Environmental Sustainability serving as key areas of focus.
Climate change and carbon credit & tradingKCB Group Operating Entities shall uphold Climate change policy and regulations. KCB Group Operating Entities shall endeavour to reduce their respective internal carbon footprint (scope 1&2 emissions).
Green lending - Through alignment with internal processes and relatable policies including credit, risk appetite policies, KCB Group shall endeavour to increase its green/sustainable lending in line with Net Zero commitment of 2050.