Bankers launch industry ESG strategy to mitigate risks
The Uganda Bankers Association( UBA) has launched an Environmental, Social, and Governance (ESG) framework to align the banking industry with the global trend of embracing sustainability and development impact.
Speaking during the launch, BOU deputy governor, Michael Atingi-Ego hailed UBA for this milestone.
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“This pioneering initiative will transform our collective approach to promoting best practices in ESG matters. The urgency of sustainability cannot be overstated. Our planet faces unprecedented challenges, from climate change to resource depletion and social inequalities,” Atingi-Ego said.
He noted that the banking sector is uniquely positioned to catalyze sustainable economic activities and foster responsible business practices.
The UBA Chairman, Julius Kakeeto, said that the ESG framework will, among other things, help financial institutions thrive in a changing financial landscape while contributing positively to the environment and society.
“Stakeholders, employees, regulators, and the wider communities are becoming aware that non-financial factors such as the impact of the company’s activities on the environment, equitable treatment of employees, the ethical culture of the business, and its stance on matters such as bribery and tax evasion have an effect on the longevity of the company’s business. These non-financial factors are what are termed ‘ESG’. Increasingly, customers, especially the younger generations, are influenced by ESG considerations based on the social and environmental impact of products and services that they consume. Based on this factor, businesses are being remodeled, aiming for sustainability and how to make the world a better place,” he said.
"Today marks the beginning of an important milestone in our ESG journey. Real progress will be measured by how much we collectively put it into action. The framework will guide the banking industry on how to integrate its principles across their operations, from governance to products, policies, and processes.”
