The Bank of Uganda is urging corporate entities to champion Environmental, Social, and Corporate Governance (ESG), emphasizing its importance in managing risks and opportunities related to sustainability issues. Dr. Michael Atingi-Ego, Deputy Governor of the Bank of Uganda, delivered this message at the Global Alliance for Banking on Values – Africa Chapter: Regional Meeting held at Centenary Bank, Mapeera House in Kampala on November 1.
ESG is a framework that provides insights into how organizations address sustainability challenges. Dr. Atingi-Ego highlighted the inevitability of transitioning to a low-carbon economy and emphasized that adapting to this change is crucial for corporate success. He noted that pursuing sustainable finance aligns with good business sense, as it opens up trillions of dollars in new investment opportunities.
Encouraging supervised financial institutions, Dr. Atingi-Ego urged them to set ambitious targets for increased investments in renewable energy, sustainable infrastructure, and eco-friendly land use. He suggested leveraging expertise to create new financial products supporting the shift towards a low-carbon economy and collaborating with clients to implement sustainable finance solutions aligned with their business objectives and sustainability goals.
While acknowledging the balancing act for financial institutions between profitability and environmental/social factors, Dr. Atingi-Ego emphasized that there is no one-size-fits-all approach. He pointed out the variable paths to carbon neutrality, especially considering the differences between developed and underdeveloped economies.
Mr. Fabian Kasi, the Managing Director of Centenary Bank, echoed the sentiment, expressing the bank’s intention to revolutionize banking for a more impactful role beyond profit-making. The call for embracing ESG reflects a broader global trend toward corporate responsibility and sustainability.
