Kenya: ABC collaborates with European bank to improve climate risk management

The Africa Banking Corporation (ABC) has joined the European Investment Bank’s (EIB) Greening Financial Systems in a significant move towards environmental sustainability.

The venture seeks to enhance ABC’s climate risk management framework in alignment with global standards, including those set by the Central Bank of Kenya.

Greening Financial Systems (GFS) technical assistance program provides tailor-made technical assistance to central banks, supervisors, and financial institutions to build climate-resilient financial systems around the world.

Over the coming months, ABC bank staff from various departments will collaborate with technical advisory experts from the EIB and Development Alternatives Inc. (DAI) to advance the bank’s green financing initiatives.

The collaboration kicked off with a workshop attended by ABC bank staff and DAI consultants, led by Marjan Stojiljković and Enrique Rebolledo.

ABC’s group managing director Shamaz Savani, and GFS program manager Dragana Tanasić emphasized the importance of the bank’s involvement and the sufficiency of the technical assistance provided.

The cooperation agreement between the two institutions was signed in November last year.

During the launch, Savani noted that the partnership marked a milestone in the journey towards environmental sustainability.

“This collaboration will strengthen ABC Bank’s efforts to integrate climate risks into our risk management framework and align our operations with global standards,” he said.

“With the support of EIB and DAI experts, we are confident that we will enhance our green financing initiatives, creating a more conducive environment for green investments and effectively managing climate risks,” he remarked.

GFS initiative is supported by the International Climate Initiative Fund (IKI Fund) on behalf of the German Federal Ministry of Economic Affairs and Climate Action (BMWK).

It represents a joint effort by BMWK and the EIB in support of the NDC Partnership’s ‘Readiness Support for Greening Central Banks’ initiative.

“We look forward to making meaningful contributions to a healthier environment and a better society for all, thanks to the partnership,” Savani added.

Through this program, ABC bank staff will receive assistance to foster an environment conducive to green investments, manage climate risks, enhance their capabilities, and share best practices for increasing green investments in their portfolio.

They will also explore green financing opportunities for their clients, contributing to a more sustainable economy.

Tanasić on his part stated that through this, ABC bank will enhance its risk management framework and pave the way for a more sustainable economy by promoting green investments.

“This partnership sets a commendable example for other financial institutions considering green financing, and I am confident that our collaboration will yield significant positive outcomes for both ABC Bank and the broader community,” he said.

source:the-star.co.ke