The IFC, a private sector-focused development institution of the World Bank Group, has launched an environmental, social, and governance (ESG) practices programme for Ghana in collaboration with the Swiss State Secretariat for Economic Affairs (SECO).
According to a press release issued on Thursday, the programme aims to assist the country’s banks and businesses in strengthening their environmental, social, and governance practices by providing them with tools to better address and assess risks and improve their sustainability and long-term performance.
Through the Integrated ESG (IESG) programme for Ghana, IFC and the Bank of Ghana (BoG) would assist banks in implementing and incorporating Ghana’s seven Sustainable Banking Principles, according to a press release.
The Sustainable Banking Principles, which were introduced in 2019, were designed to assist financial institutions in responding to risks, increasing transparency, and promoting sustainability.
Under the program, IFC would also assist selected businesses in the country’s manufacturing, services, and other sectors in addressing environmental, social, and other risks, as well as capitalizing on new growth areas, such as environmentally friendly – or “green” – buildings.
“Implementing strong ESG practices is becoming increasingly important for businesses around the world as they face rapidly evolving challenges and opportunities, such as climate change, social issues, and increased investor scrutiny,” the report stated.
SECO supports the development of Ghana’s financial sector by funding, among other initiatives, IFC’s ESG advisory services.
Kyle Kelhofer, IFC’s Senior Country Manager for Benin, Ghana, Guinea, and Togo, was quoted in a press release as saying, “Strong ESG practices are essential building blocks for sustainable, growing economies, especially today as businesses face a growing number of challenges and opportunities.”
He added, “IFC’s work with the Bank of Ghana and businesses in the country will assist them in navigating these challenges through the application of globally recognized ESG strategies.”
“Switzerland is committed to assisting Ghana on its journey toward greater sustainability, including in its financial sector,” said Dr. Simone Haeberli, Deputy Head of Mission and Head of Cooperation for SECO in Ghana.
Dr. Haeberli stated, “We are proud to have contributed to the development of the Sustainable Banking Principles and look forward to working closely with our Ghanaian partners to strengthen ESG practices in the financial and real sectors.”
The IESG programme builds on two prior partnerships between IFC and SECO, in collaboration with the Bank of England, the Chartered Institute of Bankers, the Environmental Protection Agency (EPA), and the Institute of Directors.
All Ghanaian banks have pledged to implement the principles, demonstrating their dedication to enhanced corporate governance.