DEC 16 – As global politics question climate action, how can executives continue to promote sustainability in their companies?
A decade ago, sustainability in Kenya was hardly boardroom talk. It belonged to climate activists, NGOs, or, at best, operations teams quietly installing water recycling systems or advocating for reusable water bottles in the office. Corporate social responsibility often meant an afternoon planting trees or donating cheques, more photo-ops than strategy.
Fast-forward to 2025, and the picture looks very different. At Absa Kenya, sustainability has moved from the factory floor to the C-suite, from afterthought to growth driver. In August, the bank unveiled its 2024 Sustainability and Climate Report, not as PR gloss, but as a business blueprint. Leading the presentation was CEO Abdi Mohamed flanked by a roomful of executives. Among them sat Chief Financial Officer Yusuf Omari, who put it bluntly: sustainability is good business.
“Sustainability sounds like a big, complex thing, but it has very simple, tangible applications in our daily lives,” Omari says. To him, sustainability is no longer a side project; it is central to the survival and competitiveness of modern business.
Kenya’s corporate landscape is catching up. Alongside Absa, companies such as Safaricom, Kakuzi, Standard Chartered, NCBA, and Sasini have all published sustainability reports this year, anticipating mandatory reporting rules set for 2027. Consumers, too, are demanding more transparency on how businesses source, operate, and give back. The conversation has shifted firmly from “good optics” to “good business.”
Globally, however, the mood is mixed. In the United States, President Donald Trump’s administration has rolled back climate policies, from quitting the Paris Agreement to easing restrictions on coal mining. Critics deride corporate ESG as “woke capitalism,” while advocates warn against “greenwashing.”
Yet the business case remains compelling. Deloitte reports that 79 percent of leaders see sustainability as central to long-term success, and banks across Africa are putting real money behind it. In 2024, Absa channelled Sh47 billion into sustainable finance, including Sh4 billion for climate-smart projects like renewable energy and green buildings. KCB and Equity Bank have made similar commitments, proving that green finance is no longer a sideline but a competitive arena.
As part of this shift, Absa Bank has unveiled Kenya’s first Eco-Home Loan, offering up to 110% financing to help customers build or upgrade homes with energy-efficient and climate-resilient features. The sector’s KES 100+ billion in green financing commitments this year provides vital capital.
“Leaders come, leaders leave, the principles will always remain the same. We believe what we are doing is the right thing. Sustainability is now an integral part of our strategy; it is not something we are doing on the side. We do it because it creates value. We are not doing it to impress investors, nor because it is ‘nice’ to do. We are doing it because we can see shareholder value coming through,” Omari says on the anti-ESG (Environmental, Social and Governance) narrative.
For decades, CFOs were seen as guardians of shareholder value — focused on balance sheets, not mangrove trees. Omari admits the role has changed. “A modern CFO must go beyond financial control, ledgers, and reporting. The role has expanded to include sustainability and strategy, which are now integral to who we are.”
By the end of 2024, Absa’s sustainability-linked loan portfolio spanned renewable energy, women-led enterprises, and MSMEs. “That exposure is not loss-making; it is creating value,” Omari stresses. “We are making profits in a sustainable way while sticking to our ESG principles.”
Still, measuring environmental and social returns remains tricky. Absa overlays ESG factors onto its risk models, such as checking whether clients have carbon reduction targets. “The biggest challenge today is measuring interventions on the client side. We can set a net zero target for 2050, but if a factory commits to the same, how do we measure their progress on-site?” Omari poses. “Better tools will come as more players move in this direction.”
Concerns about greenwashing are real, and Absa is keen to show accountability. Its board tracks 13 ESG commitments through its Strategy Committee. One example is mangrove planting at the Coast, where Absa has funded 250,000 trees in partnership with local communities. “It’s not just planting, it’s growing trees. We regularly go back to monitor growth,” Omari said.
Why hasn’t the bank tapped carbon credits yet? Omari says it is on the way. “Right now, we fund projects directly from our pockets. When we start claiming carbon credits, we will be able to get funds back and reinvest in further interventions.”
But sustainability isn’t just about tree planting; it also means tough lending choices. Omari recalls when then-Environment CS Aden Duale warned that banks financing polluting factories would be held accountable. “We were pleased because we have been ahead of this,” he says. “We visit borrowers and will not lend if, for example, we find they have no waste management and are dumping into rivers.”
He insists that refusing such deals, even if profitable in the short term, is part of good banking. “Compliance is one of the biggest risks in banking. It is part of the cost of doing business. We will not lend if it means being in contravention,” he says firmly.
Kenyan banks, Omari believes, are showing that sustainability is not charity, nor a distraction from profitability. It is becoming the currency of long-term competitiveness. A recent EcoVadis study (https://resources.ecovadis.com/whitepapers/the-2025-us-business-sustainability-landscape-outlook) supports this, finding that nearly two-thirds of executives now view supply chain sustainability as a competitive advantage.
The image of corporate Kenya has shifted. Where once CSR meant CEOs holding shovels for the camera, today it is CFOs like Omari scrutinising loan books for climate risks and financing homes that run on solar energy.
“Sustainability is not a fad. It’s business,” Omari says.
