ESRM in Ghana
Environmental And Social Risk Management Program – Ghana
The IFC developed an advisory project, the Environmental and Social Risk Management (ESRM) program, with the objective of increasing the uptake of E&S standards by FIs in SSA to improve the E&S performance of FIs and their clients in the long term.
Hosted by the IFC’s Environmental and Social Risk Management Program, Peter Dunbar from the UN-supported Principles of Responsible Investment, and Michael Hall from Development Partners International discuss the climate change risks and opportunities for private equity investors in Africa.
With the environmental and social challenges faced by societies today, conventional business models that do not consider the triple bottom line of people, profit and planet are likely to be unsustainable and uncompetitive. Globally, the financial sector plays a key role in the sustainability conversation and it has introduced various initiatives to encourage integration of environmental and social considerations into financing decisions.
Ghana’s economy is highly reliant on climate sensitive sectors such as agriculture, and thus, preservation of the environment, and awareness of social risks is important for a resilient economy. From a regulatory perspective, there are a myriad of regulations in Ghana addressing protection of the environment, and society. It is important for financial institutions to be aware of the pertinent legislation which is applicable to their clients’ businesses, as well as their own operations.
The ESRM Ghana program commenced activities in 2015 with the survey and baseline assessment of the E&S risk management practices of local financial institutions. To date, the program has provided support to regulators, financial institutions, local consultants and other stakeholders to support the uptake and broadening of E&S best practices.