Our Approach

Dhamana Guarantee Company Limited aims to mobilise local currency funding that supports both climate change mitigation (reducing emissions) and adaptation (building resilience).

We are committed to becoming a market leader in tackling climate change and a responsible steward of the environment, integrating climate considerations into our governance, investment decisions, risk management, and disclosure practices.

Guiding Principles

• We align with Kenya's National Climate Change Framework Policy, the Climate Change Act of 2016, and Kenya's Nationally Determined Contribution (NDC) under the Paris Agreement. Where we support transactions in other East African countries, the equivalent host-country climate policies apply.

• Every transaction we pursue is screened for Paris alignment and assessed for exposure to physical climate risk.

• We do not guarantee transactions that fall within our exclusion list or that present unacceptable environmental or social risk including new coal or oil power generation, upstream fossil fuel extraction infrastructure, and new transport infrastructure built specifically for transporting fossil fuels.

• We are establishing a climate technical assistance facility to help the businesses we support build capacity, develop new products, and further reduce emissions or build resilience.

  
  

Mitigation and Adaptation Commitments

We mobilise finance for projects, businesses and institutions that:

Mitigate climate change by:

• Providing low-carbon alternatives that displace or avoid emissions

• Driving circular economies with sustainable supply chains and better resource management

• Adopting green building standards, technologies or working practices

Support adaptation by:

• Building resilience within communities, cities and economies to a changing climate

• Being climate-resilient themselves

How We Assess Transactions

Climate considerations are built into every stage of our investment process, from initial screening through to ongoing monitoring:

• Paris Alignment Screening - We screen every transaction against sector criteria to confirm alignment with the Paris Agreement and relevant national climate commitments. Transactions in clearly climate-positive sectors such as renewable energy, clean cooking, e-mobility, sustainable agriculture, and resilience-building financial services are more readily confirmed as aligned. Some transactions (such as those requiring diesel backup, or in sectors like manufacturing, transport infrastructure, or gas-to-power) require additional assessment before we can confirm alignment. We do not pursue transactions in sectors we consider clearly misaligned with a low-carbon transition, such as new coal or oil power generation.

• Physical Climate Risk Assessment - We assess how exposed a project's physical location is to climate-related hazards such as flooding, heat stress, sea-level rise, and extreme weather using recognised risk-assessment tools. Where material risks are identified, we require appropriate mitigation measures before committing to a transaction, and we monitor these over the life of the investment.

• Ongoing Monitoring - Where relevant, we track greenhouse gas emissions avoided and created and include climate resilience indicators in our monitoring and evaluation of supported projects.

Governance and Disclosure

Our Board oversees the Company's climate strategy and reviews progress regularly. We are working toward disclosing climate-related information in line with the Task Force on Climate-related Financial Disclosures (TCFD) framework, with implementation timed to when our portfolio has reached sufficient scale to support meaningful reporting.