Accra: Mrs Matilda Asante-Asiedu, the Second Deputy Governor of the Bank of Ghana, has urged banks to think beyond profit-making and consider the environmental and social implications of their investments in the extractive sector. She stated that while the sector, comprising mining, oil, and gas, contributed a significant 20% to Ghana's GDP in the first half of the year, its impact on the environment and sustainability was also a major concern.
According to Ghana News Agency, Mrs Asante-Asiedu was addressing industry stakeholders at the fourth in a series of training programmes on Ghana Sustainable Banking Principles with a focus on the extractives sector. The training was designed for environment and sustainability staff, as well as relationship managers of banks, to better understand the Ghana Sustainable Banking Principles (GSBPs) and the requirements for implementing these environmental, social, and governance (ESG) best practices.
The event highlighted the critical role of the financial sector in promoting sustainable practices in the extractive industry, which is a backbone of Ghana's economy. Discussions at the workshop included the IFC performance standards, which provide guidelines for businesses and financial institutions to identify, assess, and manage environmental and social risks.
Mrs Asante-Asiedu pointed out that lending to environmentally responsible projects could support long-term profitability and value creation for shareholders. She emphasized that by prioritizing sustainability, financial institutions could help mitigate the sector's environmental risks while ensuring long-term profitability and shareholder value.
Mrs Yewande Giwa, IFC Senior Country Officer, noted that the session was part of a broader effort to deepen understanding of environmental and social risks across sectors. She stressed the importance of effective management of these risks for sustainable and responsible business practices, highlighting the extractive industry's role as a fundamental pillar of the Ghanaian economy.
Mr John Awuah, Chief Executive Officer of the Ghana Association of Banks, acknowledged the extractive sector's strong contribution to national development while also pointing out the challenges it presents for sustainability, climate resilience, and agricultural growth. He emphasized the need for collaboration to strengthen ESG competencies within banks and enhance compliance readiness within the extractive sector.
