The Bank of Ghana has taken a significant step towards promoting sustainable banking practices in the construction sector.
The Bank of Ghana views sustainability as a crucial aspect of financial stability, long-term value creation, and responsible economic stewardship.
In a keynote address at the Ghana Sustainable Banking Principles Construction Sector Deep Dive, Second Deputy Governor, Mrs. Matilda Asante-Asiedu, emphasized the importance of integrating Environmental, Social, and Governance (ESG) considerations into banking operations.
According to her, the construction industry is deeply linked with climate, resource efficiency, and financial risk, making it essential to incorporate sustainability considerations into project due diligence and portfolio monitoring.
Launched in 2019, these principles aim to mainstream sustainability tenets in banking operations, with a focus on ESG risks and opportunities.
She hinted that, the average compliance rate of banks with the Ghana Sustainable Banking Principles has increased from 42.28% in March 2021 to 73.06% in March 2025.
Issued in 2024, this directive requires banks to integrate climate risk considerations into governance, risk management, and disclosure practices.
Collaborations with international and local bodies, such as the Sustainable Banking and Finance Network (SBFN) and the Ghana Meteorological Agency (GMET), enhance institutional learning and position the Bank of Ghana to shape global discourse on sustainable finance.
The Bank of Ghana has engaged with the manufacturing and agriculture sectors and is now focusing on the construction sector.
The goal is to develop practical tools tailored to the identification, assessment, and management of sustainability-related financial risks in banks’ portfolios.
By promoting sustainable banking practices, the Bank of Ghana aims to safeguard the banking sector from emerging ESG financial risks and contribute to Ghana’s transition to sustainable finance.
