Global Banks Holding World’s USD 47 Trillions for climate change

Global Banks Holding World’s USD 47 Trillions for climate change

The world’s
banks among them the Kenya Commercial Bank (KCB Group) are holding USD 47
trillion in assets to be spent on climate action and sustainability.

In a massive
boost for climate action and sustainability, the 130 banks and the United
Nations have launched the Principles for Responsible Banking.

Cumulatively,
these institutions representing one third of the global banking sector hold USD
47 trillion in assets.

KCB has
became one of the Founding Signatories of the Principles for Responsible
Banking, committing to strategically align its business with the Sustainable
Development Goals and the Paris Agreement on Climate Change.

Achieving a sustainable future

By signing
the Principles for Responsible Banking, KCB Group joins a coalition of 130
banks worldwide, representing over USD 47 trillion in assets, in committing to
taking on a crucial role in helping to achieve a sustainable future.

Taking place
at the start of the UN General Assembly, the official launch of the Principles
for Responsible Banking marked the beginning of the most significant
partnership to date between the global banking industry and the UN.

“The UN
Principles for Responsible Banking are a guide for the global banking industry
to respond to, drive and benefit from a sustainable development economy. The
Principles create the accountability that can realize responsibility, and the
ambition that can drive action,” said UN Secretary-General Antonio Guterres at
the launch event.

As expressed
in the Principles for Responsible Banking, KCB Group is convinced that “only in
an inclusive society founded on human dignity, equality and the sustainable use
of natural resources can our clients, customers and businesses thrive”.

Speaking at
the launch, KCB Group Chief Operating Officer, Samuel Makome said, “The
official launch of Principles for Responsible Banking marks a major milestone
in the global banking industry of our commitment to implement Sustainable
Development Goals and Paris Climate Change into our strategic objectives. In
KCB Group the Principles remind us of the reason we exist as an institution and
we purpose to work with our stakeholders to shape a sustainable future for the
next generation.”

By signing up
to the Principles, we commit to using our products, services and relationships
to support and accelerate the fundamental changes in our economies and
lifestyles necessary to achieve shared prosperity for both current and future
generations.

“A banking
industry that plans for the risks associated with climate change and other
environmental challenges can not only drive the transition to low-carbon and
climate-resilient economies, it can benefit from it,” said Inger Andersen,
Executive Director of the United Nations Environment Programme (UNEP). “When
the financial system shifts its capital away from resource-hungry, brown
investments to those that back nature as solution, everybody wins in the
long-term.”

A strong
implementation and accountability framework supports the Principles for
Responsible Banking. By signing them, KCB Group commits to being transparent on
both our positive and negative impact on people and planet.

KCB Group
will focus where it has the greatest impact – in its core business – and set,
publish and implement ambitious targets to scale up positive and address any
negative impacts in line with global and local goals.

Investors commit to net zero emissions

At the same
time, the world’s largest investors have committed to decarbonize the global
economy.

Through an
alliance of the world’s largest pension funds and insurers, more than USD 2.4
trillion in investments has been committed to carbon-neutral investment portfolios
by 2050.

The Net-Zero
Asset Owner Alliance is an example of investors stepping up to protect people
and planet with the knowledge that companies that transform their businesses to
deliver a low carbon economy will benefit most from the opportunities presented
by climate change.

As long-term
investors who must look far into the future to fund their liabilities, asset
owners are keen to ensure that the global economy prospers, that climate-related
risks are addressed, and that opportunities to invest in a cleaner tomorrow are
captured.

The Alliance
was initiated by Allianz, Caisse des Dépôts, La Caisse de dépôt et placement du
Québec (CDPQ), Folksam Group, PensionDanmark and Swiss Re at the beginning of
2019.

Since then,
Alecta, AMF, CalPERS, Nordea Life and Pension, Storebrand, and Zurich have
joined as founding members.

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