Absa Bank Kenya released its 2024 sustainability and climate report, combining climate and sustainability disclosures into a single framework ahead of regulatory timelines. Finance director Yusuf Omari explained that the move positions ESG metrics alongside financial data to guide capital allocation and risk management.
Investors and lenders around the world are now tying environmental, social and governance performance to how much it costs to borrow and how easily companies can raise funds. In Kenya, new rules will soon require companies to follow global standards for climate and sustainability reporting.
At the launch of Absa Kenya’s 2024 sustainability and climate report, finance director Yusuf Omari told stakeholders the move was intended to change how the organisation uses information to make decisions.
“Today is all about collaboration and partnership. Sustainability has been a journey that we’ve embarked on for quite a number of years, and through that, we’ve always been coming to you and sharing the report, which is what will be shared later today. These commitments we’ve made to the general public about what our sustainability commitments are going to be, and the issues of accountability and coming back to you to be able to see the track record that we’ve been able to follow, and how we are actually achieving those commitments becomes very key,” he said.
The 2024 report is the first time the bank’s climate and sustainability disclosures have been brought together in a single document. It is also the first time Absa has aligned its reporting with the International Sustainability Standards Board’s IFRS S1 and S2 disclosure standards. This has been done well before Kenya’s 2027 initial adoption date, making Absa one of the early movers in the market.
“S1 is about general disclosures that need to go into our report. And when you look at S2, it’s specifically on climate. You think about climate issues to do with lower carbon emissions, and looking at some of the investments that we are doing today, we’re going to be able to launch the Eco Homes, which has to do with climate. You will hear some good stories about what we are doing, looking at renewable energy,” he explained.
Sustainability data is now part of the same governance and review processes as financial information at the bank. This means it has a bigger role in how capital is deployed and how risks are assessed. This approach reflects market changes, as sustainable performance is now shaping the cost and availability of funding.
In 2024, Absa lent Ksh 47 billion to sustainability-linked and climate-related projects, with targeted support for MSMEs, women-led businesses, youth and low-income households.The disclosure shift marks a change in how the organisation tracks and reports performance over time.
“When ESG metrics are presented on the same dashboard as credit performance, liquidity ratios, and capital adequacy, they start influencing decisions in real time,” Yusuf said.
He noted that the past approach to sustainability reporting lacked a shared structure and timing, making comparisons difficult. Early adoption of IFRS S1 and S2 early allows the bank to present financial and non-financial results in a way that can be compared with other banks. This makes it easier for stakeholders to see and track performance over time.
“In the past, whenever we spoke about sustainability, different companies had different frameworks they were using for disclosures. There was no uniformity in terms of what you needed to disclose. There was no uniformity in terms of the timing on when you need to put this report, and issues of also comparing from previous years,” he said.
