The Bank of Ghana (BoG) is optimistic about its four-year agreement with the International Finance Corporation (IFC) to enhance the capacity and training of financial sector participants through the implementation of the Integrated Environmental Social Governance Principles (IESG).
The BoG believes this partnership will complement efforts to ensure a resilient and sound financial sector in the country.
The IESG Ghana Programme, supported by funding from the Swiss Economic Corporation (SECO), is a four-year initiative by the IFC.
It aims to foster an enabling environment for sustainable banking and strengthen capacity for improved Environmental, Social, and Governance (ESG) practices among financial intermediaries and corporate clients.
The programme aims to promote the growth of sustainable local businesses, encourage investments in key sectors, and contribute to a diversified and resilient economy.
Through collaboration with the BoG, the IFC will assist in implementing the Ghana Sustainable Banking Principles, enhance the capabilities of local training partners on ESG matters, and support the BoG’s regulatory developments related to ESG for banks and other regulated entities.
During the signing ceremony, the Second Deputy Governor of the Bank of Ghana, Elsie Addo Awadzi, expressed the central bank’s expectation that this new partnership will firmly establish sustainable banking practices within the Ghanaian banking sector in the coming years.
“We see the launch of the IESG partnership today as a major milestone for promoting the resilience of the banking sector and the economy as a whole. Sustainable banking can be a crucial tool for addressing the structural vulnerabilities of our economy, and can create long-term value for all economic actors, by promoting a more sustainable and equitable future”.
Engaging the media at the signing ceremony, Senior Country Manager of IFC, Kyle Kelhofer said the partnership will provide players in the financial sector the tools to better address and assess risks while improving sustainability in long-term performance.
“This means not only is Ghana becoming more sustainable green today but becoming more sustainable green for future generations on climate change. This also means the banking system is being more sustainable and bankable so there is room for the banks to grow now as it embraces credit worthy sustainable principles,” MyJoyOnline quoted him to have said.
Meanwhile, the Swiss Economic Corporation and Development Ghana said it is committing $1.5 million to ensure financial sector players are trained on Environmental Social Governance Principles for the next four years.