As competition for global investment intensifies, Ghana is being challenged to strengthen environmental, social and governance (ESG) standards, with development finance institutions arguing that stronger sustainability practices are no longer simply about corporate responsibility but have become a critical factor in attracting capital, managing risk and improving business competitiveness.
That message emerged at an ESG Roundtable convened in Accra by the International Finance Corporation (IFC), where development partners called for closer collaboration to accelerate the integration of ESG principles across Ghana’s private sector and financial system.
The meeting brought together representatives from the World Bank Group, GIZ, KfW, the United Nations Development Programme (UNDP), the Swiss State Secretariat for Economic Affairs (SECO) and other organisations to coordinate sustainability initiatives and reduce duplication of efforts.
Opening the discussions, IFC Senior Country Officer for Ghana, Yewande Giwa, said ESG has moved beyond being a niche corporate agenda and is increasingly influencing investment decisions, access to finance and long-term business performance.
“Environmental, social and governance considerations are becoming ever more important. For IFC, ESG is not a parallel agenda but an integral part of the work that we do and an essential part of private-sector development,” she said.
She explained that IFC’s sustainability framework and corporate governance tools are helping businesses improve transparency, strengthen accountability, engage more effectively with communities and manage operational risks while enhancing development outcomes.
According to Ms. Giwa, the objective of the roundtable was to create greater visibility around the various ESG programmes already underway in Ghana and identify opportunities for development partners to work together more effectively.
“We all have the same goal, but we are implementing different activities. There is a clear opportunity for coordination, improved visibility of our efforts and stronger collaboration so that together we can make a greater impact,” she said.
The discussions reflected the growing importance investors place on ESG performance when assessing businesses and financial institutions, particularly in emerging markets where governance, environmental compliance and social impact increasingly influence investment decisions.
IFC Environmental and Social Risk Management Specialist, Damilola Sobo Smith, said companies that fail to identify and manage environmental and social risks expose themselves to financial, operational and reputational losses.
“Environmental and social risks do translate into business risks,” she said, pointing to environmental compliance failures, waste management challenges and operational disruptions as issues capable of affecting profitability and business continuity.
She said IFC’s Integrated ESG Programme is supporting businesses to adopt internationally recognised environmental and social standards while working with the Bank of Ghana to strengthen implementation of the Ghana Sustainable Banking Principles.
The programme seeks to help financial institutions integrate environmental and social risk management into governance structures, lending decisions and overall business operations.
Ms. Smith added that Ghana has established itself as one of the countries in the region making steady progress in promoting responsible business conduct through regulatory reforms and sustainable finance initiatives.
The role of long-term partnerships also featured prominently during the discussions.
Deputy Head of Cooperation at the Embassy of Switzerland, Magdalena Wüst, said building a resilient financial sector requires sustained collaboration among development institutions, regulators and the private sector.
She noted that SECO has partnered with IFC in Ghana for more than a decade to strengthen environmental and social risk management, support regulatory reforms and build the capacity of financial institutions to implement sustainable banking standards.
“Advancing sustainable finance requires collaboration, and partnerships like ours with IFC help strengthen institutions and create lasting impact,” she said.
For Ghana, the discussions come at a time when the country is seeking to attract greater foreign direct investment, expand private sector financing and position itself as a competitive destination for sustainable investment.
Globally, institutional investors are placing increasing emphasis on ESG performance when allocating capital, with businesses demonstrating strong governance, effective risk management and responsible environmental and social practices often enjoying better access to financing and lower investment risk.
Participants concluded the roundtable by committing to deepen collaboration, share expertise and strengthen coordination in advancing ESG adoption across Ghana’s economy, with the broader objective of making the country’s private sector more resilient, investment-ready and competitive.
