The Bank of Ghana (BoG) has reaffirmed its commitment to guide, supervise and support the banking industry as it moves toward more sustainable practices, with a sharp focus on environmental, social, and governance (ESG) risks.
According to the BoG, sustainability is not a fringe concern but a central pillar of financial stability, long-term value creation, and responsible economic management.
Second Deputy Governor of the BoG, Mrs. Matilda Asante Asiedu, gave the assurance at a high-level engagement with the Ghana Association of Banks, the Chief Executive of the Environmental Protection Agency (EPA), and the Senior Country Officer of the International Finance Corporation (IFC).
The forum marked a strategic step in the Bank’s journey to mainstream ESG considerations into the core operations of Ghana’s financial sector.
Construction sector under the spotlight
Dubbed the Ghana Sustainable Banking Principles Construction Sector Deep Dive, the forum was the latest in a series of sector-specific engagements aimed at safeguarding the banking system from emerging ESG-related financial risks. Previous sessions have focused on manufacturing and agriculture.
Mrs. Asiedu emphasised the critical connection between the construction industry and ESG risks.
“A bank financing a large real estate project may do its due diligence using traditional credit metrics. But what happens when climate-related disruptions, such as flooding or regulatory permit delays, derail timelines and escalate costs?” she asked.
These disruptions, she noted, could increase default risks, erode reputational capital, and attract regulatory sanctions.
“Construction, like other sectors, is deeply intertwined with climate change, resource efficiency, and financial risk,” she said. “Banks must move beyond reactive risk management to integrate ESG risks into credit assessments, client engagements, and portfolio monitoring.”
ESG is no longer optional
Mrs. Asiedu stressed that ESG issues are not simply public relations matters or checklist items.
“They form the framework for measuring an organisation’s long-term sustainability and resilience — from how it treats its workforce and communities to how it governs itself,” she stated.
In boardrooms around the world, ESG may appear as a slide in a presentation.
But for the BoG, it is now embedded within regulatory oversight and strategic planning. “We want to ensure that Ghana’s banking sector doesn’t play catch-up but leads from the front,” she added.
Progress and implementation
The BoG’s sustainability agenda began in 2015 with the formation of the Sustainable Banking Committee.
In 2019, after thorough stakeholder consultations, the Ghana Sustainable Banking Principles (GSBP) were launched and endorsed by bank CEOs — a turning point in integrating ESG concerns into banking operations.
To track progress, the BoG rolled out a standardized ESG reporting template in 2021, enabling banks to submit their reports through the Online Regulatory Analytics and Surveillance System (ORASS).
Since then, all 23 commercial banks in Ghana have been trained on the seven principles.
From an average compliance rate of just 42.28% in March 2021, adherence to the principles had grown to 73.06% as of March 2025.
The BoG commended stakeholders for their cooperation and noted the improvement in supervisory oversight and transparency.
Global partnerships and national coordination
In 2021, the BoG joined the Network for Greening the Financial System (NGFS), a global coalition of central banks focused on advancing climate-related financial supervision.
That same year, the BoG began aligning with the Basel Committee’s standards and guidance on climate-related financial risks.
This culminated in the 2024 issuance of a Climate-Related Financial Risk Directive, which mandates all Regulated Financial Institutions (RFIs) to update their governance, risk management, and disclosure frameworks.
Institutions have until December 31, 2025, to comply, with full implementation set for January 1, 2026.
Additionally, the BoG has cultivated partnerships with bodies such as the Sustainable Banking and Finance Network (SBFN), Alliance for Financial Inclusion (AFI), and the Ghana Meteorological Agency (GMET), all of which contribute to institutional learning and global positioning.
Green finance taxonomy and climate office established
A cornerstone of Ghana’s sustainable finance roadmap is the Green Finance Taxonomy, jointly developed with the Ministry of Finance.
This framework helps financial institutions identify and classify green investments and avoid “greenwashing” in project financing.
To drive all these efforts, the BoG established a dedicated Climate and Sustainability Office in 2023.
This office now leads the Bank’s sustainability strategy, supports regulated financial institutions, coordinates stakeholder engagements, and champions capacity building.
What lies ahead
The Bank of Ghana has demonstrated that sustainability is not just a policy buzzword but a regulatory and developmental imperative.
As it shifts focus to sectors like construction—an engine of Ghana’s infrastructure and economic development—the BoG is signaling that ESG compliance will become a core expectation for future banking operations.
“Our vision is to ensure that the financial system is not just stable and profitable, but resilient, inclusive, and sustainable,” Mrs. Asiedu concluded.
With the regulatory groundwork laid and partnerships strengthened, the BoG appears poised to ensure Ghana’s banks thrive in a rapidly evolving ESG-conscious global economy.
