The Second Deputy Governor of the Bank of Ghana, Mrs. Matilda Asante-Asiedu, has urged banks to move beyond short-term profit motives and integrate environmental, social, and governance (ESG) considerations into their financing decisions for the extractive industry.
Speaking at the fourth Ghana Sustainable Banking Principles (GSBPs) training session focused on the extractives sector, Mrs. Asante-Asiedu cautioned that while mining, oil, and gas continue to drive Ghana’s economic growth, contributing nearly 20 percent to GDP in the first half of 2025, their environmental and social costs cannot be ignored.
“If we’re lending to the right people and ensuring that our investments are sustainable, profitability and responsibility can actually go hand in hand,” she said.
The training, organised for sustainability officers and relationship managers from across Ghana’s banking sector, aims to deepen understanding of the GSBPs and promote sustainable finance practices aligned with IFC Performance Standards.
These standards provide a global benchmark for identifying and managing environmental and social risks in business operations.
Mrs. Asante-Asiedu stressed that banks have a critical role to play in shaping the sustainability agenda within Ghana’s resource-driven economy.
By integrating ESG principles into their lending frameworks, she said, financial institutions could help reduce the sector’s environmental footprint while safeguarding long-term shareholder value.
“Prioritising sustainability is not charity but it’s good business. Environmentally responsible investments minimise risk exposure, ensure compliance, and ultimately yield more stable, long-term returns,” she noted.
She called for stronger partnerships between banks, regulators, and extractive firms to build an industry-wide commitment to sustainable finance that promotes both profitability and planetary responsibility.
Mrs. Yewande Giwa, Senior Country Officer of the International Finance Corporation (IFC), underscored that effective management of environmental and social risks is not only a compliance measure but also a pathway to resilience and credibility for Ghana’s financial system.
“The extractive industry remains a fundamental pillar of Ghana’s economy. But without proper environmental and social safeguards, its growth could come at a cost to communities and ecosystems,” she said.
Mrs. Giwa added that when banks cut off financing to non-compliant or illegal mining operations, they help protect the environment and enhance the credibility of the sector as a driver of sustainable and inclusive growth.
“Integrating sustainability into financing decisions protects banks from reputational and financial risks while ensuring that Ghana’s natural wealth benefits future generations,” she added.
Mr. John Awuah, Chief Executive Officer of the Ghana Association of Banks (GAB), highlighted the paradox of the extractive sector being both a major source of revenue and a significant driver of environmental degradation.
“Mining consumes vast amounts of water and energy, while oil extraction poses serious threats to coastal and marine biodiversity. The environmental debt from unsustainable practices could undermine the ecosystems that future generations depend on,” he warned.
Mr. Awuah said the Association would intensify collaboration with the Bank of Ghana, development partners, and industry stakeholders to strengthen ESG competencies within banks and improve compliance frameworks across the extractive value chain.
“Our goal is to build a dual-capacity model, one that equips banks to finance responsibly and enables extractive firms to meet the sustainability standards expected in global markets,” he explained.
The extractive industry remains central to Ghana’s development strategy, but experts agree that its long-term success depends on embedding sustainability, climate resilience, and social equity at every level of financing and operation.
Mrs. Asante-Asiedu added that sustainable banking is no longer optional but it is a national imperative.
“The choices we make today about who and what we finance will determine whether Ghana’s extractive industry becomes a catalyst for sustainable prosperity or a liability for generations to come,” she said.
