Businesses urged to embrace ESG in their operations

Businesses have been encouraged to embrace Environmental Sustainability Governance (ESG) practices which are more than a regulatory requirement, but a strategic move towards enduring sustainability and resilience in a dynamic business environment.

The call was made at the seventh Annual Bankers Conference held under the theme: Navigating the future of banking: ESG, Sustainability, and Digital Transformation.

The conference follows the recent launch of the banking industry ESG framework aimed at championing the process of integrating ESG principles and sustainability into the operations of supervised financial institutions in the country.

PostBank Uganda Managing Director who also doubles as Uganda Bankers Association (UBA) Chairman, Julius Kakeeto, encouraged entities to embrace ESG as it is a fundamental component of a resilient and sustainable financial future.

“The regulatory landscape is rapidly evolving to support the accelerated shift towards a sustainable future and manage the challenges this presents, thus embracing ESG is now more than a regulatory requirement but rather a strategic move towards enduring sustainability and resilience in a dynamic business environment,” Kakeeto said.

“The case of Uganda provides a compelling illustration of ESG integration with the National Development Plan (NDP III) incorporating commitments to regional and international development frameworks, including ESG. The second Nationally Determined Contribution (NDC) outlines ambitious targets, aligned with national policies like Vision 2040 and the National Climate Change Act of 2021.”

Bank of Uganda, Executive Director for supervision, Tumubweine Twinemanzi reaffirmed BoU’s  support towards the banking sector.

” Bank of Uganda working with UBA established an industry ESG framework that was rolled out two weeks ago. Unlike other countries, in Uganda the Central Bank approached the ESG agenda differently by allowing the    banking industry to be at the forefront of the framework and as the regulator we followed. I believe in addition to the guidelines we have in place that business operators can adopt while conducting business.”

The Permanent Secretary in the Ministry of Finance and Secretary to the Treasury,  Ramathan Ggoobi, affirmed that the Uganda’s economy is safe and growing at a good rate which is 6%, revealing that it has recovered from various shocks that were affecting it for the last 5 years. He mentioned that the Ministry has a good plan for accelerating economic growth.

Commenting on the ESG move, Ggobbi stressed government’s commitment to climate change adaptation and mitigation with several policies put in place to support this agenda.