We understand the profound impact of climate change on Africa’s communities and economies. Our approach to climate change acknowledges the need for a just and inclusive transition. Therefore, our efforts extend beyond mitigation to addressing adaptation and resilience as well.

Absa Group has the ambition to achieve net zero greenhouse gas emissions by 2050 across operational and financed Scope 1, 2 and 3 emissions, in alignment with the United Nations Framework Convention on Climate Change and the Paris Agreement. Our climate-related disclosures framework is in alignment with TCFD recommendations and we are assessing emerging disclosures such as the International Sustainability Standards Board’s International Financial Reporting Standards S1 and S2.

During our medium-term planning and annual cyclical stress-testing processes, we maintained the momentum to incorporate the effects of climate-related risks into our forecasts, risk appetite and capital buffer-setting processes. While the bulk of the climate risk stress-testing work is still exploratory in nature and subject to significant uncertainty given the time horizons being considered, some practical elements have started shaping our financial plan.

As explained in the message from our CEO, we have set Scope 3 financed emission reduction pathway targets for our investments in coal, oil and gas. We will continue to add additional pathways as we move forward. This could include areas such as transport, construction or agriculture.

Climate strategy

Key metrics

• Portfolio analysis of climate-sensitive sectors: Actual gross loans and advances at a Group level as at 31 December 2022 and 2023
• Fossil fuels: Overall exposure including both loans and limits to these sectors
• Renewable energy financing: Annual loan amount against target
• Our direct footprint: Greenhouse gas emissions and energy consumption

Targets

• 25% absolute reduction target in coal-financed emissions by 2030 from our 2022 baseline
• 9% reduction target in oil- and gas-financed emissions by 2030 from our 2022 baseline
• 51% reduction in operational and supply-chain greenhouse gas emissions by 2030 from our 2018 baseline
• R100 billion mobilisation target for sustainable finance by 2025