Why Ghanaian Businesses Need to Rethink ESG
By Nana Adwoa Baafi, PMP
For many organisations across Ghana, Environmental, Social and Governance (ESG) principles often look like corporate donations, tree planting exercises, school renovations, scholarship schemes or community outreach programmes. These initiatives although undeniably contribute to social development, risk reducing ESG to acts of corporate philanthropy hence missing the bigger picture.
The reality is that ESG is not simply a modern version of Corporate Social Responsibility (CSR). It is a framework that is increasingly shaping how businesses are governed, how risks are managed, how investors make decisions and ultimately, how organisations create long-term value across the board.
For years, many businesses have viewed sustainability as a matter of goodwill. Today, sustainability has become a matter of resilience.
Globally, investors, regulators and consumers are paying closer attention to how organisations operate. Questions are no longer limited to profitability. Stakeholders are now asking questions such as: How does a company manage its environmental impact? How does it treat its employees? How transparent is its leadership? Are governance structures strong enough to ensure accountability? Is the organisation creating value in a way that can be sustained over time?
These questions are what lie at the heart of ESG.
The E (Environmental) pillar focuses on how organisations manage their relationship with the environment. This includes issues such as energy efficiency, waste management, resource consumption, climate resilience as well as environmental stewardship.
The S (Social) pillar on the other hand, focuses on people. It examines employee welfare, workplace safety, diversity and inclusion, community relations and human rights, together with the broader social impact of business operations.
Finally, the G (Governance) pillar, often the least discussed, yet arguably the most important, emphasizes leadership, ethics, transparency, accountability, risk management and decision-making structures. Strong governance helps organisations build trust, attract investment, and ensure that commitments made to stakeholders are actually fulfilled.
Arguably, governance is the foundation upon which the other pillars rest. An organisation may launch impressive environmental programmes or community initiatives, but without ethical leadership and effective oversight, such efforts can quickly become little more than public relations activities.
For Ghanaian businesses, this distinction is very important, because many times, sustainability conversations become centred on how much a company has donated or how many projects it has sponsored.
While corporate giving is and continues to be valuable, ESG challenges organisations to ask deeper questions about how they operate every day.
Are employees being treated fairly? Are procurement processes transparent? Are risks being properly managed? Is leadership accountable? Are environmental impacts being measured and addressed? These are not questions of charity but of overall strategy.
Although these concepts may sound theoretical, several organisations operating in Ghana are already demonstrating what ESG looks like in practice.
In the telecommunications sector, MTN Ghana has increasingly sought to embed sustainability into its operations rather than treating it as a standalone CSR initiative. The company’s introduction of biodegradable SIM cards in 2025, and investments in renewable energy solutions, through its Project Zero, reflect efforts to reduce environmental impact through operational decisions. Worthy to note is MTN’s commitment to sustainability reporting, which demonstrates a willingness to measure and disclose its ESG performance.
The banking sector offers another example. As part of the wider Absa Group, Absa Bank Ghana has strengthened its focus on governance, stakeholder accountability and sustainable finance. The bank applies enhanced due diligence frameworks to evaluate the Environment and Social impacts of major projects and corporate loans, thereby ensuring that the bank does not finance operations that harm vulnerable communities while adhering to international best practices like the UN Principles for Responsible Banking.
This showcases that beyond managing its own environmental footprint, the bank recognises that the institutions it finances can have a significant impact on sustainability outcomes. This highlights an often-overlooked aspect of ESG: organisations can influence positive change not only through their own operations, but also through the businesses and projects they choose to support.
The mining sector on the other hand, perhaps provides the clearest illustration of ESG in action. Newmont Ghana’s Ahafo Development Foundation has become a notable example of structured community investment, supporting education, infrastructure and local development within host communities. The company’s emphasis on local procurement, stakeholder engagement and responsible mining practices demonstrates how businesses can balance economic growth with social and environmental responsibilities.
Finally, at an institutional level, the Ghana Stock Exchange’s ESG Disclosure Guidance signals an important shift in the corporate landscape. By encouraging listed companies to improve sustainability reporting and transparency, the Exchange is helping move ESG from a voluntary exercise to a more structured framework for accountability.
These examples reveal an important lesson. ESG is not about replacing CSR. Rather, it is about moving beyond philanthropy and integrating sustainability, accountability and responsible governance into the core of business strategy. Additionally, they suggest that ESG is no longer a conversation reserved for multinational corporations or international investors, but becoming increasingly relevant to businesses operating within Ghana’s own economic environment.
In Ghana, where small and medium-sized enterprises form the backbone of the economy, ESG should not be viewed as a framework reserved for large corporations with dedicated sustainability departments. Instead, it should be ingrained that, every organisation, regardless of size, can benefit from stronger governance, responsible business practices as well as a commitment to creating sustainable value.
As Ghana continues to pursue economic growth and attract investment, ESG presents an opportunity to rethink what sustainable profitability looks like. The organisations that thrive in the future will not necessarily be those that make the largest donations or sponsor the most visible projects. They will be those that successfully integrate sustainability, accountability and responsible governance into the way they do business.
As the conversation around ESG in Ghana develops, it presents our greatest opportunity yet. Rather than viewing ESG as another corporate buzzword or compliance exercise, we have the chance to shape a uniquely Ghanaian approach that reflects our economic, social and development realities and aspirations.
Such an approach would recognise the importance of local content participation in industries such as mining and oil and gas. It would prioritise financial inclusion in a country where access to formal financial services remains uneven. It would address youth unemployment through meaningful investment in skills development and human capital. It would encourage responsible waste management in our cities, promote climate resilience within our agricultural sector and strengthen governance practices across both public and private institutions.
Most importantly, it would acknowledge that sustainability in Ghana cannot simply be imported from global frameworks. It must be rooted in the issues that matter most to our people and our economy.
Gradually, the future of business will not be defined solely by financial performance but by how organisations balance profit and growth with responsibility, accountability and sustainability.
The question for Ghanaian businesses is no longer whether ESG matters.
The question is whether we are prepared to move beyond philanthropy and embrace sustainability as a core business imperative.
The writer, is a communications and stakeholder engagement professional who writes on sustainability, corporate governance and development.