Atingi-Ego urges corporates to champion ESG
Dr Michael Atingi-Ego. Photo / File
What you need to know:
- Environmental, Social, and Corporate Governance (ESG) is a framework that helps stakeholders understand how an organization manages risks and opportunities around sustainability issues
The Bank of Uganda has advised that championing Environmental, Social, and Corporate Governance and sustainable finance is the right thing for all corporate citizens to do.
Environmental, Social, and Corporate Governance (ESG) is a framework that helps stakeholders understand how an organization manages risks and opportunities around sustainability issues.
Speaking at the Global Alliance for Banking on Values – Africa Chapter: Regional Meeting held at Centenary Bank, Mapeera House in Kampala on November 1, the Deputy Governor Bank of Uganda, Dr Michael Atingi-Ego said it makes good business sense because the transition to a low-carbon economy is inevitable, and only those who adapt will thrive.
“It is an opportunity to grow because transitioning to a net-zero economy will create trillions of dollars in new investment opportunities. The BoU encourages all supervised financial institutions to pursue sustainable finance, including; setting ambitious targets to increase investments in renewable energy, sustainable infrastructure, and eco-friendly land use,” he said.
Dr Atingi-Ego said the financial institutions should be leveraging expertise to create new financial products aiding the shift towards a low-carbon economy, collaborating with clients to implement sustainable finance solutions aligning with their business objectives and sustainability goals.
“The ESG and sustainability adoption poses a balancing act for financial institutions, balancing profitability and environmental and social factors. There's no one-size-fits-all approach on this journey. For example, the disparity between developed and underdeveloped economies means variable paths to carbon neutrality,” he said.
The managing director of Centenary Bank, Mr Fabian Kasi said: “We intend to ensure that we revolutionize banking so that we are not only there to make money but also to ensure that we are very impactful."
