"BoG Deepens Push for Green Finance Integration, Compliance Rises to 73.6%"

" BoG Deepens Push for Green Finance Integration, Compliance Rises to 73.6% \r\n\r\nThe Bank of Ghana (BoG) is stepping up efforts to integrate climate risk and environmental sustainability into the country\u2019s financial architecture, with a renewed call on banks and other regulated institutions to align their operations with the Ghana Sustainable Banking Principles.\r\n\r\nSpeaking at a focused session on the construction sector under the Sustainable Banking Principles initiative, Second Deputy Governor of the BoG, Mrs. Matilda Asante-Asiedu, revealed that sector-wide compliance with the principles has increased significantly\u2014from 42.2% in 2021 to over 73.6% as of March 2025.\r\n\r\n\u201cThe Bank of Ghana facilitated the training of all 22 commercial banks on sustainable banking principles. The average compliance rate has been on an upward trajectory from 42.2 percent to 73.6 percent. We are seeing a major shift in how banks view climate risk and sustainability,\u201d she stated.\r\n\r\nThe Central Bank\u2019s sustained engagement, she noted, is helping financial institutions to adopt practices that integrate environmental, social and governance (ESG) factors, particularly in high-impact sectors such as construction.\r\n\r\n Climate Risk Now a Core Concern \r\n\r\nThe BoG\u2019s focus on the construction industry\u2014one of Ghana\u2019s most carbon-intensive sectors\u2014reflects the regulator\u2019s concern about the dual threats of climate risk and stranded assets.\r\n\r\n\u201cThe construction sector presents both risk and opportunity,\u201d noted Mrs. Asante-Asiedu. \u201cBy directing capital toward environmentally sustainable projects, banks can play a transformative role in building climate-resilient infrastructure while minimizing their exposure to stranded assets.\u201d\r\n\r\nShe reiterated that climate risk is no longer a peripheral issue, stressing its relevance to financial stability and long-term sectoral growth.\r\n\r\nThe Second Deputy Governor also underscored the role of green finance in supporting Ghana\u2019s broader climate ambitions and achieving resilience across economic sectors.\r\n\r\nThe Ghana Sustainable Banking Principles, introduced in 2019, provide a framework for banks and other financial institutions to integrate sustainability into their core business strategies, governance structures and risk management frameworks."

"BoG Deepens Push for Green Finance Integration, Compliance Rises to 73.6%"

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