![Ms Damilola Sobo Smith, Environmental and Social Risk Management Specialist at the International Finance Corporation [middle]](https://www.citinewsroom.com/wp-content/uploads/2026/06/gh-gal.png)
Ghana has steadily risen to become a regional leader in Environmental, Social and Governance (ESG) regulation in West Africa, ESG experts and development partners have said.
Ghana’s ESG journey began gaining momentum in 2020, when the Bank of Ghana introduced the Sustainable Banking Principles.
These guidelines require banks to consider environmental and social risks in their daily operations and lending decisions.
Since then, regulators and development partners have worked closely to strengthen the framework and ensure compliance across the financial sector.
Their collaboration has gradually improved how financial institutions manage risks related to environmental protection, social responsibility, and governance.
Speaking at a high-level ESG Roundtable for Development Partners at the World Bank Office in Accra, Ms Damilola Sobo Smith, Environmental and Social Risk Management Specialist at the International Finance Corporation (IFC), noted that Ghana’s progress had been driven by steady policy reforms, coordinated institutional efforts, and strong regulatory leadership.
She explained that the ESG had become critical for businesses, and that companies must address issues such as climate change, poor waste management, labour conditions, and human rights to remain sustainable and competitive.
Ms Sobo Smith said one of the major successes of the ESG programme had been helping banks to understand how environmental and social risks could directly affect business performance.
She noted that challenges such as improper permits or poor waste management could lead to shutdowns and financial losses.
As a result, many banks now incorporate ESG checks into their decision-making processes, she said, adding that businesses seeking loans must meet specific environmental and social standards, which have improved transparency and accountability across sectors.
Ms Sobo Smith further noted that regulators had increased cooperation in recent years to ensure consistent application of ESG policies across the financial system.
That collaboration, she added, had been key in positioning Ghana at the forefront of sustainable finance in the region.
Environmental, Social and Governance refers to a framework that requires businesses and financial institutions to consider environmental protection, social responsibility, and good governance practices in their operations and decision-making to ensure sustainability, accountability, and long-term success.
Development partners have also acknowledged Ghana’s progress.
Ms Magdalena Wüst, the Deputy Head of Cooperation at the Swiss Embassy, said the Sustainable Banking Principles had significantly strengthened the financial sector.
She attributed the success to years of institutional support and investment, saying collaboration with the IFC had helped Ghana build a resilient financial system capable of attracting investment, supporting businesses, and creating jobs.
She noted that strong ESG regulation enhanced investor confidence, as investors were more likely to invest in countries with clear and reliable governance systems.
Ms. Wüst emphasised that Ghana’s achievements demonstrated the importance of effective regulation, continuous training, and strong partnerships in addressing environmental and social challenges.
Looking ahead, she called for expanded ESG implementation across all sectors of the economy to sustain progress and promote inclusive growth.
