Banks operating in the country have made significant progress in aligning with sustainable practices in compliance with environmental, social and governance (ESG) requirements, rising from 42 per cent in 2021 to 73.6 per cent as of March this year. 

It follows intensified efforts of the Bank of Ghana (BoG) to integrate environmental sustainability into the country’s financial sector, urging banks and other regulated institutions to embed climate risk into their operations.

At the Ghana Sustainable Banking Principles – Construction Sector Deep Dive in Accra yesterday, the Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, said the growing green financing compliance reflected a meaningful shift towards environmentally responsible banking, particularly in high-impact sectors such as construction.

“The Bank of Ghana facilitated the training of all 22 commercial banks on sustainable banking principles. And we are seeing a major shift in how banks view climate risk and sustainability,” she said.

Event

The workshop, hosted by the central bank, sought to sensitise financial institutions to the risks and opportunities that existed within the construction and real estate industry.

It also created a platform for participants from the financial industry to gain insight in order to enhance their understanding of the issues, risks and opportunities within the construction sector.

The event was attended by the Chief Executive Officer of the Ghana Association of Bankers (GAB), John Awuah; Director at the Intersectoral Network Department of the Environmental Protection Authority (EPA), Jewel Kudjawu and Senior Operations Officer of Ghana Country Office at the International Finance Corporation (IFC), Yewande Giwa, and other dignitaries, among others.

Commitment

Mrs Asante-Asiedu said that the central bank remained committed to embedding climate-related financial risk management across the banking industry and also promoted a sustainable financial ecosystem.

She said the construction industry, like all other sectors, was deeply linked with climate resource efficiency and financial risk, and it was precisely such intersections between sustainability and traditional banking risks that the sector deep dives were designed to uncover.

The Deputy Governor said the goal was to ensure that banks did not simply react to those risks after they occurred, but proactively incorporate sustainability considerations into project due diligence, client engagement and portfolio monitoring.

“The climate and sustainability office within the Bank of Ghana was established in 2023.

This dedicated office now drives our strategic vision, supports regulated financial institutions, and coordinates stakeholder engagement and capacity-building efforts,” she said.

Green projects

Ms Kudjawu said according to the EPA, the banking sector was undergoing a significant shift in business direction, with investors and financiers actively promoting green projects and adopting best practices in resource-efficient initiatives to support environmentally friendly development.

She said this shift was crucial in mitigating the risks associated with the three main planetary crises - pollution, biodiversity loss and climate change, which posed significant threats to the environment, human health, and the economy.

“In line with the government's sustainable principles, the EPA has remained committed to assisting financial stakeholders in adopting and implementing sustainable banking principles, providing guidance and support to ensure a more environmentally conscious and responsible financial sector,” Ms Kudjawu added.