- ESG is now more than a regulatory requirement but rather a strategic move towards enduring sustainability and resilience in a dynamic business environment
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Businesses are being urged 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.
According to Postbank Uganda Managing Director also Uganda Bankers Association (UBA) Chairman, Julius Kakeeto, ESG is a fundamental component of a resilient and sustainable financial future.
His remarks during the 7th Annual Bankers Conference held under the theme, “Navigating the future of banking: ESG, Sustainability, and Digital Transformation”,
“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,” Mr. Kakeeto says.
He further highlights, that “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 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.
Bank Of Uganda, Executive Director of the Bank Supervision Directorate, Tumubweine Twinemanzi has 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 and Secretary to the Treasury, Ministry of Finance, Ramathan Ggoobi, says 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.
In regard to ESG Mr. Ggoobi reiterates government’s commitment to climate change adaptation and mitigation with several policies put in place to support this agenda.
“Financial institutions occupy a pivotal position in addressing ESG risks because they can direct capital towards transformative investments and projects that are sustainable and bring about inclusivity coupled with positive environmental and social impact, thus we must us fully integrate ESG principles into our business practices for a sustainable business environment,” Kakeeto remarked.