The world will not achieve its climate goals without investing in the right places. Climate action requires significant financial investments, such as in new energy systems and infrastructure that can withstand climate change impacts. But climate inaction is vastly more expensive.
All countries need to reduce their emissions and adapt to climate change. However, many developing countries lack the resources and the technology to do so. Financial investments to combat climate change are thus important.
In the realization that climate change has affected the economy in the last few years, specifically the erratic weather patterns and prolonged drought, the Sacco industry is taking up the role of ensuring appropriate mitigation measures in line with the government priorities on climate change and sustainable development goals.
According to the Sacco Societies Regulatory Authority (SASRA), the industry is expected to direct financial flows towards economic activities that contribute to a low-carbon, resilient, and socially responsible economy.
“Saccos need to take into consideration the impact of their financial products and services on the environment and society in which they operate. The Authority is now challenged to guide the industry by developing frameworks, standards, and metrics for measuring and reporting on the sustainability performance of financial investments and institutions,” reads a report by SASRA.
Generally, the Co-operative movement in Kenya is increasingly taking up the role of environment conservation. Many Co-operative Societies are assisting their members to embrace environmental conservation.
Savings and Credit Co-operative Societies (SACCOs) are offering financial support to support members in combating the adverse effects of climate change. For instance, Kenya National Police DT Sacco and Taifa DT Sacco have partnered with various providers to help members purchase water tanks, solar panels and household electronic appliances.
Annually, co-operators around the country plant trees as part of the activities leading up to International Co-operatives Day, and Co-operative Societies also participate in the environment through Corporate Social Responsibility (CSR) programmes. Trees help farmers in income generation, environmental conservation, as well as forest cover contribution.
The African Confederation of Cooperative Savings and Credit Associations (ACCOSCA) and Desjardins (DID), in partnership with the Proxfin Action Research, are developing a climate action plan adaptable to the context of Saccos and national associations in Africa.
ACCOSCA’s board and management unanimously decided to incorporate Environmental Social Governance (ESG) and green finance in its operations and writing. It believes that the Cooperative movement in Africa can significantly contribute to Sustainable Development Goal NO.13 Climate Action. It has begun building a framework for the African Cooperative Climate Action Plan and integrating climate protection measures into its policies, business practices, and training. The confederation has more than 24,000 member Saccos from 28 African countries and has been equipping its employees with working approaches that ensure optimal and efficient use of resources to reduce waste, save energy, and avoid environmental degradation.
The Kenya Union of Savings and Credit Co-operatives (KUSCCO) has partnered with The Nature Conservancy (TNC), an environmental conservation organization, to increase tree planting and sustainable wood supply in Kenya through smallholder forestry initiatives. Dubbed ‘KUZA MITI’, which is Swahili for ‘grow trees’, the project is aimed at commercializing tree planting in Kenya through the co-operative movement and also supporting environmental conservation. Through this project, Saccos can access certified tree seedlings from the Tree Biotechnology Program Trust (TBPT) for planting within their communities and thus contribute to achieving 10% forest cover in the country. In so doing, the financial co-operatives are taking urgent action to combat climate change and its impacts in line with Goal 13 of the Sustainable Development Goals.
