In opening remarks at a Ghana Sustainable Banking Principles construction sector deep dive, the Bank of Ghana set out its expectations for banks to treat environmental, social and governance (ESG) factors as core risk drivers in construction finance and updated industry stakeholders on progress in embedding sustainability into banking supervision. The remarks framed construction lending as exposed to sustainability-related drivers that can affect project timelines and costs, loss given default, reputational outcomes and potential regulatory penalties, and positioned the sector deep dives as a tool to strengthen banks’ due diligence, client engagement and portfolio monitoring. The central bank recapped that the Ghana Sustainable Banking Principles were launched in 2019, supported by a standardised ESG reporting template introduced in 2021 for submissions through the Online Regulatory Analytics and Surveillance System (ORASS) and training delivered to all 23 commercial banks between 2021 and 2023. Based on biannual returns, the average compliance rate with the principles increased from 42.28 in March 2021 to 73.06 in March 2025; the Bank also referenced the establishment of its Climate and Sustainability Office in 2023 and Ghana’s wider Sustainable Finance Roadmap and Green Finance Taxonomy work. For climate-risk supervision, the Bank of Ghana referenced its 2024 Climate-Related Financial Risk Directive for all regulated financial institutions. Banks must update governance structures, risk management systems and internal policies by 31 December 2025, with full implementation starting on 1 January 2026.
Bank of Ghana 2025-07-29
Bank of Ghana reports sustainable banking compliance up to 73.06 and confirms 1 January 2026 start for its Climate-Related Financial Risk Directive
The Bank of Ghana stressed integrating ESG factors into construction finance due to their impact on project timelines, costs, and regulatory risks. It reported progress in embedding sustainability into banking supervision, with compliance to the Ghana Sustainable Banking Principles rising from 42.28% in March 2021 to 73.06% in March 2025. The Bank also outlined its 2024 Climate-Related Financial Risk Directive, requiring banks to update governance and risk management systems by the end of 2025.