The Managing Director of GCB Bank, Mr Kofi Adomakoh, has called for a paradigm shift within the financial sector to create long-term value for businesses without sacrificing environmental needs.
He made this appeal at the Business Conference organised by Stanford Seed Transformation Network, Ghana.
Speaking as a guest at the event, held in Accra, last Thursday, Mr Adomakoh emphasised that business and sustainability were not mutually exclusive.
“Sustainability does not mean sacrificing profits or putting success on the backburner. Instead, it has become a crucial element of successful strategy in today’s business climate,” he explained.
He revealed that 23 commercial banks in Ghana, including GCB, have agreed to the Sustainable Banking Principles after five years of extensive work. Undergirded by the National Sustainable Financing Framework published in October this year, the agreement aims to encourage organisations to take a critical view of the environmental impact of their work and strive to balance the threefold imperatives of Profit, People and Planet.
Citing examples of global peers within the financial sector, Mr Adomakoh affirmed that Environmental, Social, and Corporate Governance (ESG) initiatives can generate significant gains to finance major transformations in Ghana.
Even though Mr Adomakoh acknowledged the constraints of sustainable financing such as the high rate of non-performing loans, he encouraged leaders within the financial sector to show commitment, prioritise sustainability and explore opportunities existent in market mechanisms in the Power, Transport, Carbon Management, and Oil & Gas industry among others.
BY KINGSLEY ASARE