Ghana’s business landscape is witnessing a significant shift as Environmental, Social, and Governance (ESG) principles take center stage, redefining the concept of responsible growth. Companies are increasingly recognizing that profitability and sustainability are not mutually exclusive, but rather complementary.

Investors, too, are taking a closer look at how transparent, ethical, and environmentally conscious organizations are, signaling a maturing business culture that understands Ghana’s development story must be both inclusive and sustainable.

The foundations of ESG date back to centuries-old ethical investment practices. Faith-based communities like the Quakers shunned sectors such as tobacco, liquor, and armaments, prioritizing moral alignment over financial gain. This ethos evolved into socially responsible investing (SRI) by the 1970s and later, the notion of Corporate Social Responsibility (CSR) gained traction.

The United Nations has played a pivotal role in establishing worldwide norms and defining ESG. The UN Global Compact, initiated in 2000, set forth 10 core principles for enterprises, addressing human rights, labour standards, environmental stewardship, and anti-corruption efforts. The UN Principles for Responsible Investment (PRI) debuted in 2006, offering a voluntary blueprint for investors to weave ESG considerations into decision-making processes.

Frameworks for assessment and disclosure have also been developed, including the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). These tools have made ESG data more actionable, enabling better risk management and opportunity identification.

ESG’s ascent accelerated in 2015 with the Sustainable Development Goals (SDGs) and the Paris Agreement. Today, ESG is indispensable for resilience, enhancing capital access, bolstering reputations, and mitigating threats from environmental shifts to ethical lapses.

In Ghana, the Integrating Climate Action and ESG principles into Commercial Business Activities (ICACE) project was launched to tackle the specific vulnerabilities faced by the private sector due to climate change. The initiative addresses knowledge gaps, builds capacity among SMEs, women-led, and youth-driven enterprises, and promotes sustainable practices to enhance resilience and unlock funding opportunities.

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