A new analysis by KPMG has emphasised the need for banks in Ghana to adopt more responsible and sustainable banking practices.
According to the firm, financial institutions around the world are increasingly innovating financial products that support sustainability, including green bonds and sustainability-linked loans.
It noted that this global shift toward responsible banking holds significant implications for Ghanaian banks.
These insights were contained in a comparative analysis of the Bank of Ghana’s Sustainable Banking Principles and the Ghana Stock Exchange’s ESG Disclosure Guidance Manual, conducted by KPMG.
“This systemic shift is reflected in recent micro-level advancements globally. Leading financial institutions like Morgan Stanley, Allianz, and Caisse des Dépôts are making bold commitments to achieve net-zero carbon emissions by 2050,” the report stated.
“Banks are innovating financial products that support sustainability, such as green bonds and sustainability-linked loans,” it added.
KPMG further observed that the demand for sustainable business practices has intensified in recent years.
“All businesses are encouraged to incorporate sustainability principles and report on the environmental, social, and governance (ESG) aspects of their operations. Strides are being made across various sectors, but the financial sector is particularly crucial for ESG advancement due to its pivotal role in resource allocation across industries,” the report mentioned.
To support this global trend locally, the Bank of Ghana introduced its Sustainable Banking Principles in 2019, offering a framework for financial institutions to integrate sustainability into their operations.
Similarly, in 2022, the Ghana Stock Exchange launched the ESG Disclosures Guidance Manual to guide listed companies in reporting on ESG initiatives and performance.
These frameworks aim to enhance accountability, build investor confidence, and improve transparency for stakeholders. KPMG’s analysis reviewed both guidelines as enabling frameworks for ESG implementation in Ghana’s banking sector.
The report also explored the challenges and opportunities that listed banks may face in implementing these guidelines, offering key insights to help them adopt sustainable business practices.
In its global perspective, KPMG noted, “Sustainability Reporting Insight from the Global Banking Sector – Banking as we know it is undergoing a significant shift. Post-COP26, more responsibility is being demanded from the industry, making sustainability reporting a critical component of operational transparency.
“Various regulatory directives such as the EU’s Corporate Sustainability Reporting Directive (CSRD), the US SEC’s climate-related disclosure rules, and industry-specific standards like the United Nations Principles for Responsible Banking (PRB) and the GRI Sector Standards for Banking, are laying the foundation for comprehensive ESG disclosures to become a global standard,” it explained.
KPMG concluded that for Ghanaian banks to remain competitive and relevant, they must embrace these changes and actively contribute to building a more sustainable financial future.
SSD/MA
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