Equity Group has set a global benchmark with the highest number of climate-related transactions among 258 financial institutions worldwide.
The lender supported 47,000 climate transactions addressing climate mitigation and adaptation initiatives to tackle the negative impacts of climate change.
This is according to Equity Group’s 2023 Sustainability Report which was launched on Tuesday.
It exemplifies Equity’s unwavering commitment to socio-economic and environmental transformation across its entire business.
The annual report also seeks to showcase Equity Group’s dedication to sustainable business practices and the integration of Environmental, Social and Governance (ESG) aspirations into its core operations.
This includes the integration of the Task Force for Nature Related Finance Disclosures as a new focus beyond climate risk management.
Speaking during the unveiling of the report, Equity Group MD and CEO James Mwangi said their business model encompasses a tri-engine approach with an economic focus, a social focus, and a nature, and environmental focus, all working to achieve positive impact.
“We have not only applied our efforts to realizing social impact, but also have a strong focus on environmental and nature stewardship, promoted through an intentional approach to addressing our own footprint and imparting knowledge to de-risk and empower our broader ecosystem,” he said.
“Additionally, we understand that a sustainable future requires mindful consideration of our impact on the planet, and this report demonstrates how Equity is leading the charge in this effort.”
Mwangi noted that Equity is walking the talk within its business operations across the seven markets it runs offices in.
They include DRC, Ethiopia where it operates a representative office, Kenya, Rwanda, South Sudan, Tanzania and Uganda to deepen environmental stewardship.
On his part, Equity Group chairman Isaac Macharia underscored the importance of the report in providing an unwavering vision to be a catalyst for sustainable, socio-economic prosperity in Africa.
“As a purpose-led institution, we understand the important role we play both in the economy and society. We strongly believe that deepening sustainability is not just a moral imperative, but also critical for the long-term health of the business, as sustainable institutions are better placed to thrive and create value for all stakeholders in the long term,” Macharia said.
In 2023, Equity observed fluctuations in grid-based energy consumption.
The report states that some regions experienced a slight increase in energy consumption, including Rwanda (by 0.4%) and DRC (by 13.1%).
Kenya reduced its energy consumption by 9.7%.
On energy intensity per staff, the report observed that the highest consumption figures are recorded in the DRC at 4,307 kWh per staff.
“However, there was an improvement of energy intensity by 7% compared to 2022. Rwanda saw the highest energy intensity at 1,679 kWh per staff, representing a decrease of 15%.” the report read in part.
“Following Rwanda and DRC, Kenya recorded electricity consumption at 1,482 kWh per staff, indicating a reduction of 6% compared to 2022.”
Additionally, in 2023, the Group tracked waste generated in Kenya identifying various waste streams including glass, paper, metals, organic matter, plastics, medical waste, and e-waste.
Paper waste accounted for 72% of the total waste generated, totalling to 316 tonnes.
In Kenya, the Group noted that generated waste paper continues to be recycled through support of a circularity approach with its suppliers.
Under education and leadership development, the Wings to Fly and Elimu scholarship programmes saw 60,009 scholars receive comprehensive high school scholarships.
The Equity Leaders program supported 23,825 University scholars and alumni of the program with 891 attending global universities including 199 who have attended Ivy League universities.
Increasing access to comprehensive health financing and private sector-led, affordable, high-quality and standardised health services. At the end of 2023, Equity Aya launched a total of 98 outpatient medical centres in Kenya.
“So far, it has been able to manage over 2.1m patient visits,” the report noted.
“Equity Afya continues in its expansion strategy, with ongoing rollout in DRC, and continues to avail quality, affordable health services across the franchise network.”
In collaboration with small and medium-sized farmers, Equity Group Foundation impacted over 3.8 million small scale farmers and supported over 292, 362 MSMEs in the farming sector.
“It has delivered these efforts through technology, training of over 186,077 farmers and over 18,030 Micro-Small and Medium Agriculture Enterprises, access to markets and access to finance.”
In 2023, the Group also trained over 2.4 million youth and women in Financial Education, and 517,2467 MSMEs in entrepreneurship with over Sh. 275.3bn disbursed to trained youth, women and MSMEs.
Additionally, the Group disbursed over Sh. 24bn towards climate finance covering energy efficiency, renewable energy, and climate-smart agriculture.
To achieve inclusive financial services, Equity leveraged technology to see over 11.72bn transactions done digitally, Sh. 240.7bn transactions under mobile and internet banking as well as 28.17bn transactions under agency.
“This has seen a last-mile financial reach to customers who would otherwise remain underbanked,” the Group noted.
Equity has also reached 5.4 million individuals with social assistance programs including cash transfers, fee waivers, subsidies and social pensions delivered to vulnerable and marginalized populations.
Cumulatively, Sh 138.39bn was disbursed via cash transfers and capacity building was availed as a pathway to transition beneficiary cohorts into economic stability and self-reliance.
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