Standard Chartered Bank Kenya plans to increase lending to climate-friendly investments amid the transition to low carbon practices.
The lender has said it will offer cheaper credit to customers to adopt cleaner technologies and modernise business operations as the world races to net-zero carbon emissions.
The bank will also support clients' access to about 22 environmental, social and governance mutual funds available.
StanChart net earnings rose by two-thirds to Sh9 billion in 2021 from Sh5.4 billion a year earlier.
It registered a total operating income of Sh28.3 billion in the year, a six percent growth from Sh26.69 billion in 2020.
Sustainable financing earnings in 2021 were below three percent of the total income.
“We see what role we can play in terms of actualising that opportunity both for corporates, SMEs, as well as for individuals. So we will look at the current business and see how much income is coming from and is going towards sustainable practices,” said StanChart chief executive Kariuki Ngari.
The earnings targets will be ahead of at least six percent projected from Group’s sustainable finance offering, eyeing $4 trillion (Sh468 trillion) a year of investments needed to help address climate change issues globally.
StanChart will help in financing corporate and small businesses to cut carbon emissions in their operations through the installation of solar power and water heating systems, and shift from fossil fuel energy to renewable sources.
It will be targeting sectors such as oil and gas, metals, and mining and power.
The bank has partnered with water and energy solutions provider Davis & Shirtliff to extend credit to its customers who receive up to 25 percent discounts on the products under the agreement.
“We are being very deliberate about what new business lines we will drive and track, not only for the benefit of the company but most important for the wider economy. If you borrow money to do something that is not sustainable-relate we are not going to track that,” Mr Ngari said.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
