Climate Change & Climate related risks

What is Climate Change?

Climate change is long-term shifts in temperatures and weather patterns.

What are the 5 causes of climate change?
Fossil fuels, Deforestation, Increasing livestock farming, Fertilizers containing, nitrogen, Fluorinated gases

So what’s climate change got to do with finance?
Climate change is one of the major risks threatening the well-being of mankind. It has increased the frequency and magnitude of extreme weather events causing loss of lives, diminished livelihoods, reduced crop and livestock production, and damaged infrastructure, among other adverse impacts.

Consequently, it is increasingly recognized as a source of financial risks for financial institutions and corporates. Globally, the central banking and regulatory community is demonstrating growing awareness of the issue and commitment to tackling the

Therefore the Central Bank of Kenya came up with guidelines on Climate-Related Risk Management that provide a roadmap to entrench climate risk management in bank operations and business models for all banks in Kenya.

What are climate related risks?

  1. Physical risks

Those related to the physical impacts of climate change, such as extreme weather events, chronic heat waves, sea-level rise, erosion, and biodiversity loss.

Physical risks can be categorized as either acute or chronic in nature:

2. Transition risks

Transition risks are business-related risks that follow societal and economic shifts toward a low-carbon and more climate-friendly future. These risks can include policy and regulatory risks, technological risks, market risks, reputational risks, and legal risks. These arise from the process of adjusting towards a lower carbon economy.

What are some ways we can reduce and manage climate risk?

These include

  • regulation
  • research, development, and deployment of new technologies
  • conservation
  • efforts to increase public awareness
  • positive incentives to encourage choices that lower emissions
  • adding a price to greenhouse gas emissions, which creates incentives to reduce emissions broadly.

Cost of Credit

To compare different bank loan costs for commercial banks in Kenya Click Here to visit the Total Cost of Credit website.

Data Protection Privacy

In line with the Data Protection Act, click here to read our data protection privacy notice.

Key Facts Document

The Key Facts Document outlines all the features, benefits and charges of our various products to help you decide what product or service best suits you. Click here to read more.

FATCA Statement

FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. ABC Bank is FATCA compliant in all its operations. To find out more about FATCA and how it affects you, please contact any of our branches or offices. We may contact you to request further information or documentation in order to verify your tax status under FATCA. For more information on FATCA, click here.
Review our FAQs here. ©2023 | Tel:+254 (20) 4263 000 / +254 (0)719 015 000 or  | Call our Hotline No: +254 (0)701 700 700,  |
Hello. Welcome to ABC Bank! How may we help you?