How East Africa banks are creating value through sustainability reports

In response, banks are growing their sustainable finance portfolios, designing innovative products and reconfiguring their risk management practices.

The desired outcome for banks is to ensure they stand out in a competitive industry and deliver sustainable returns to their shareholders and broader stakeholders.

This unique backdrop sets the stage for how banks in the region are navigating sustainability and their business rationale for building a sustainable banking business model. Here are some of the approaches banks in East Africa have adopted to create value:

The lenders are keen to leverage sustainability to be differentiated in their markets. This involves product innovation, customer experience, and technology adoption that drive topline growth, improve profitability, and enhance risk management.

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Sustainability is emerging strongly as a key enabler for driving business growth strategy across East African banks. Another area where banks are creating value is applying sustainability in building the ‘bank of the future’. Banks are reimagining their business and operating models, focused on future customers and their unique preferences.

Banks are actively engaged in meeting the increasing demand for sustainable finance. As economies transition from high-intensity to low-intensity carbon economies, banks recognise the opportunity for value creation.

Finally, banks are creating value through sustainability reporting to build trust across markets. Providing high-quality, decision-useful financial and non-financial reporting is critical to improving the confidence of investors and other market players.

The banks are investing in sustainability reporting competencies and tools that provide insight and enhance the overall utility of their corporate reports.

Sustainability for banks is no longer about regulatory compliance but value creation over time.

While sustainability faces headwinds globally, across East Africa, it is viewed by banks as a business and moral imperative for society.

Banks remain focused on achieving tangible business benefits through sustainability and are taking a business lens view as they integrate sustainability across their business.

The writer is a partner at PricewaterhouseCoopers. He is an author who writes and speaks widely on corporate reporting topics.

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