ACCRA, Ghana— Ghanaian banks could play a critical role in unlocking international capital for the country’s green and resilient economic transition if they strengthen how environmental and social risks are assessed in lending and investment decisions, a Chartered Environmentalist and ESG professional has said.
Justice Akoto said the growing global sustainable-finance architecture presents Ghana’s banking sector with an opportunity to move beyond traditional approaches to credit and portfolio management and position itself to attract new sources of international investment.
Speaking on “Global Sustainable Finance Architecture — From Global Commitments to Ghanaian Banking Practice,” he said banks must understand how international frameworks are increasingly influencing capital flows, investor expectations and the assessment of financial risks.
He said the issue is particularly important for Ghanaian financial institutions as businesses across sectors face growing pressure to adapt to environmental and economic changes while accessing the capital needed for investment and expansion.
According to Justice Akoto, the Paris Agreement provides the climate direction, while the 2030 Agenda and Sustainable Development Goals (SDGs) establish broader development priorities.
He explained that the UN Global Compact sets principles covering human rights, labour, the environment and anti-corruption, while the Principles for Responsible Banking (PRB) translate these commitments into banking strategy, portfolios, transactions and client engagement.
The frameworks, he said, should ultimately influence practical decisions within Ghanaian banks — from determining which sectors receive financing to assessing the risks and opportunities associated with individual borrowers and investments.
Source: www.climatewatchonline.com
