Promote sustainable culture in operations- BoG urges banks
The Bank of Ghana (BoG) has urged banks to take a leadership role in promoting a sustainable culture in their operations to help build a robust and resilient economy.
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This is because of the critical role sustainable banking plays in the country’s development efforts.
Second Deputy Governor of the BoG, Elsie Addo Awadzi said at the launch of the maiden Ecobank Sustainability Week in Accra that the central bank had through a collaborative approach designed a set of sustainable banking principles to be applied by the banks.
She said all the 23 banks operating in the country had signed on to the principles.
“The principles were not rules-based but a voluntary effort by banks to comply with these very important principles because of the banks' understanding of their relevance”, she said.
“We encourage the banks to comply with them and if not, explain why they could not comply”, she added.
The deputy governor said the principles were set out to provide banks with the roadmap to inculcate sustainable principles in their operations internally as they relate to their clients.
“We expect in particular that the banks apply these principles to at least five key sectors of the economy, which are agriculture, mining and extractives, fisheries, forestry and construction”.
Mrs Awadzi said the BoG’s concept of sustainable banking was for the banks to recognise the risks that were posed to the bottom line and the balance sheet and the long-term sustainability and resilience for environmental, social and governance risks.
“Sustainable banking is important for many reasons”, she said.
Carbon footprints
She explained that banks were supposed to reduce their carbon footprints in their operations and promote gender equity, which is a social pillar and their dealings with the market to promote financial inclusion.
Managing Director of Ecobank Ghana, Abena Osei-Poku, said the bank was committed to playing a lead role in propelling the country’s waste transformation journey.
“We are actively financing businesses and projects that promote responsible waste management practices”, she said.
She said the bank supports initiatives such as waste collection and sorting facilities, composting initiatives, and the development of innovative recycling technologies.
The bank currently provides financing and suitable payment platforms for customers in the waste management sector.
Mrs Osei-Poku said Ecobank was implementing stricter waste segregation policies in all of its branches and offices, partnering with recycling companies, and exploring ways to further reduce paper consumption.
“As part of the sustainability week celebration, we will be donating recycled products, including upcycled washing basins, recycled exercise books, and recycled waste bins, among others, to the St. Paul’s Senior High School in the Volta Region”.
Waste Transformation
She said the students would have the opportunity to engage waste transformation experts who would discuss sustainability issues, including its implications for local communities.
“Our goal is to create a dynamic ecosystem where businesses, policymakers and communities work together to turn waste into a resource, rather than remaining a burden to society”, she added.
Chief Country Risk Officer at Ecobank, Ms Joana Mensah, said as a pan-African bank, it recognised the interconnectedness of the society, environment and economy.
She said Ecobank’s sustainability strategy was built on seven core pillars, which aligned with the UN Sustainable Development Goals (SDGs), and the Paris Climate Agreement.
She said the framework allowed the bank to integrate sustainability into everything the bank did, from its products and services to its operations and community engagements.
The bank she said was committed to international sustainability frameworks and protocols including the UN Environment Programme Finance Initiative, the UN Global Compact, and the Equator Principles, among other notable ones.
Ms Mensah expressed the bank’s commitment to continuous improvement, pushing the boundaries of innovation and collaboration to create a more sustainable and better future for all.
“We invite you to join us on this journey. Together, we can build a thriving economy for Ghana that operates in harmony with our environment and empowers our communities”, she said.