As concerns about climate change and environmental degradation continue to grow globally, NCBA Group has positioned itself at the forefront of the financial sector’s push towards sustainability. Looking at the NCBA Integrated Report of 2023, let us go deep into the impressive strides NCBA has made in facilitating its customers’ transition to a low carbon operating model, focusing on its initiatives in the automotive and renewable energy sectors, alongside comprehensive environmental conservation efforts.
Moving people to Electric Vehicles
NCBA Group has made substantial investments in promoting electric vehicles (EVs) as part of its commitment to sustainability. The Group has earmarked KES 2 billion towards financing electric vehicles, recognising the critical role these vehicles play in reducing greenhouse gas emissions.
“The shift to electric vehicles is an essential part of our strategy to support sustainable practices among our customers and reduce our carbon footprint,” explains John Gachora, Group Managing Director. He highlights the importance of this initiative not only for environmental sustainability but also for its potential to revolutionize the transport sector in East Africa.
Solar Energy Financing
In addition to promoting electric vehicles, NCBA is heavily invested in solar energy. With a financing allocation of KES 500 million towards solar photovoltaic (PV) systems, the bank is empowering its customers to adopt renewable energy solutions. This initiative is particularly impactful in regions where access to the main electric grid is limited, providing reliable and green energy solutions to businesses and homes.
Charging Stations
To facilitate the adoption of electric vehicles, NCBA is investing in the necessary infrastructure, notably the deployment of EV charging stations across the region. So far, the bank has established four charging stations, with three located in Nairobi and one in Kigali. This strategic placement not only serves to accommodate current EV users but also to encourage potential users by addressing the challenge of charging accessibility.
Expanding Environmental Efforts: Tree Planting, Waste Recycling, and Plastic Reduction
Beyond energy, NCBA is deeply committed to broader environmental conservation through its tree planting program and waste management initiatives. The bank has set an ambitious goal to plant 10 million trees by 2030, with over 7 million trees already planted. This initiative not only combats deforestation but also enhances carbon sequestration, contributing significantly to climate change mitigation.
“Our tree planting efforts are a core component of our sustainability agenda, designed to restore and preserve the environment while engaging community participation,” notes James P.M. Ndegwa, Group Chairman.
In addressing waste management, NCBA has achieved considerable reductions in its waste footprint. Over 34% of waste is now recycled at its headquarters and pilot branches. Furthermore, the bank has made significant progress in reducing plastic usage, achieving a 76.3% reduction in plastic used for corporate gifting.
A Deeper Look into NCBA’s Green Initiatives
NCBA’s sustainability efforts are supported by comprehensive strategies that aim to integrate environmental consciousness into all aspects of their operations and customer offerings. The Group has developed a “Change the Story” knowledge platform which serves to inspire and capacitize the public towards sustainable change. This platform is a testament to NCBA’s commitment to not just financial growth but also to fostering a sustainable future.
The bank’s broader strategy includes significant numbers that highlight their achievements and goals:
- Electric Vehicles: Commitment of KES 2 billion towards financing, aiming to increase the number of electric vehicles in Kenya.
- Solar Energy: KES 500 million allocated for solar PV systems financing.
- Charging Stations: A total of 4 EV charging stations established, enhancing the EV ecosystem.
- Tree Planting: Over 7 million trees planted together with NCBA’s stakeholders towards a 10 million tree goal by 2030.
- Waste Recycling: Over 34% of waste recycled, significantly reducing landfill contributions.
- Plastic Reduction: Achieved a 76.3% reduction in the use of plastic for corporate gifting.
These numbers are part of NCBA’s proactive approach to support sustainable business practices and encourage their customers to make eco-friendly choices.
Conclusion
NCBA Group’s strategy to transition customers to a low carbon operating model through support for electric vehicles and renewable energy financing is a robust example of corporate environmental responsibility. By integrating sustainability into their business model, NCBA is not just changing the narrative but is also setting a benchmark for others in the financial sector to follow. Through strategic investments and a firm commitment to green initiatives, NCBA is playing a pivotal role in shaping a sustainable future for East Africa.
As the world continues to grapple with environmental challenges, NCBA’s initiatives offer a blueprint for how financial institutions can contribute meaningfully to the global sustainability agenda.
