Climate Related Risk Management (CRRM) is a framework that seeks to anticipate, avoid and prevent all types of climate risks as well as to absorb remaining impacts from events such as storms and floods to slow-onset environmental changes such as increasing sea levels and desertification.
But first, what is climate change? It’s the increase in the average temperature and weather patterns of the planet.
Click here to learn more on climate change and what is being done to mitigate it globally and locally.
There are several risks associated with climate change. Click here to learn more on these and how it relates to finance.
ABC Bank has come up with strategies and initiatives that align with the guidelines from the Central Bank of Kenya on Climate-Related Risk Management which provide a roadmap to entrench climate risk management in bank operations and business models for all banks in Kenya.
These include:
- Aligning our goals to global action in climate change e.g. Net zero GHC emission by 2050, global warming limit to 1.5 degrees, new rules/regulations for carbon markets
- Sustainable financing. Where we take into consideration environmental, social and governance (ESG) factors when making investment decisions and creating partnerships.
- Incorporating climate risks and opportunities into business such as sustainable funding in low carbon economy and efficient energy generation, restorative farming (agriculture, forest and land use), Renewable & clean energy, resilient infrastructure, appropriate housing, lower carbon technology, transport e.t.c.
- Raising awareness among our stakeholders such as staff, customers, suppliers and partners. We have done this by sharing climate change information with our staff and customers, training our staff on CCRM among others.
- We are also working with suppliers and vendors who are ‘green’ in their manufacturing and production processes.
- The Bank’s corporate social responsibility (CSR) are aligned with Sustainable Development Goals and our Climate Related Risk Management objectives where we work with partners who support eco friendly ventures such as recycling old newspapers
- Incorporating CCRM strategies in our Bank policies, procedures and bank operations such as adapting energy efficient bulbs and natural lighting in our offices, adapting digital media to reduce paper wastage, efficient water and power consumption.
