The Bank of Ghana has renewed its call for stronger alignment between banking operations and sustainability imperatives, spotlighting the construction
The Bank of Ghana has renewed its call for stronger alignment between banking operations and sustainability imperatives, spotlighting the construction sector in its latest thematic engagement under the Ghana Sustainable Banking Principles (GSBPs).
This was made clear during a high-level stakeholder dialogue held on Tuesday, July 29, 2025, at the Alisa Hotel in Accra, where the Second Deputy Governor, Matilda Asante Asiedu, delivered a keynote address emphasizing the urgency of embedding Environmental, Social, and Governance (ESG) considerations into banking decisions, especially in high-impact sectors like construction
Addressing industry leaders and stakeholders from the Ghana Association of Banks (GAB), Environmental Protection Agency (EPA), International Finance Corporation (IFC), and professional bodies such as the Chartered Institute of Bankers and Institute of Chartered Accountants Ghana, Asante-Asiedu stressed that sustainability is no longer a peripheral topic but a central pillar of financial stability and risk management.
Why the Construction Sector Matters
According to the Deputy Governor, the construction industry poses significant environmental and financial risks that are often overlooked in traditional credit assessments.
She pointed out scenarios where non-compliance with environmental permits or the effects of climate variability could lead to project delays, cost overruns, and heightened credit risk for banks.
“These are increasingly part of the risk landscape,” she warned, noting that such issues can damage a bank’s reputation and invite regulatory penalties.
The construction sector, a cornerstone of Ghana’s infrastructural development, is now under scrutiny as the Bank of Ghana continues its sector-specific ESG engagements.
After previous deep dives into the manufacturing and agriculture sectors in 2024, the central bank has now turned its attention to construction, aiming to ensure that banks proactively manage risks through enhanced due diligence, client engagement, and portfolio oversight.
Bank of Ghana’s ESG Roadmap
Tracing the evolution of the Bank’s sustainability agenda, Asante-Asiedu recounted the establishment of the Sustainable Banking Committee in 2015, which culminated in the launch of the Ghana Sustainable Banking Principles in 2019 after extensive consultations.
These principles were endorsed by bank CEOs and have since become the foundation of the country’s sustainable finance framework.
To facilitate compliance, the Bank introduced a standardized ESG reporting framework in 2021 via its Online Regulatory Analytics and Surveillance System (ORASS).
Since then, all 23 commercial banks have undergone training on the seven banking principles. As of March 2025, the sector has achieved a commendable 73.06% compliance rate, up from 42.28% in March 2021.
The Bank’s commitment deepened in 2021 when it joined the Network for Greening the Financial System (NGFS), aligning its practices with global climate-related supervisory standards.
This led to the issuance of the Climate-Related Financial Risk Directive in 2024, mandating all regulated financial institutions (RFIs) to revise governance and risk structures by December 31, 2025, ahead of full implementation in 2026.
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