By Hilda AFEKU-AMENYO
The importance of green finance in the current global efforts to combat climate change cannot be overemphasized. This is also the case in Ghana where sustainable development has gained momentum with financial institutions taking the lead.
However, a transient but crucial aspect of this transition is employee knowledge of sustainability concepts.
Empowering employees with extensive understanding of sustainability can substantially boost innovations on sustainable finance products that will drive the financial industry and the country towards a more environmentally friendly and resilient economy.
Incorporating sustainability into finance does not only involve creating green bonds or sustainability linked loans but it requires a complete shift in mindsets and skills of those designing and managing these types of finance instruments.
To provide effective solutions to these challenges, a well-versed employee about environmental issues would consider various aspects such as social equity, environmental preservation and climate change.
Employees who have an expansive knowledge on sustainability can identify emerging market trends and opportunities. As the country advances its sustainability agenda, there is a growing need for financial products that promote climate resilience and adaptation. Savvy employees can contribute meaningfully to innovative product development designed specially to mitigate climatic risks.
Secondly, personnel who understand the meaning of terms related to ecologically conscious behavior can make sure that real environmental benefits are provided through financial products ensuring that investments are not only profitable but also genuinely sustainable, aligning with national and global goals for environmental protection and climate change mitigation.
Moreover, it has been observed that fostering a culture of sustainability within financial institutions can be a source of innovation. This may involve encouraging employees’ engagement in activities aimed at promoting environmental conservation; setting up cross-functional teams responsible for coordinating sustainable development projects; and recognizing or rewarding practices leading to long-term sustenance of environment.
Instituting such steps could foster an atmosphere where innovations arising from questions related to green economy flourish. When employees see sustainability as a core value rather than a peripheral concern, they are more likely to come up with creative solutions that integrate sustainability into financial products.
It is important to note that training and professional development programs that focus on sustainability play a critical role in creating this knowledge base. In Ghana, financial institutions need to train their staffs extensively on matters relating to sustainability which should involve comprehensive education on Environmental, Social and Governance (ESG) parameters. Such programs can be delivered through workshops, online courses, or partnership with academic institutions as well as experts in the area of sustainability.
It is strategic to make employees more aware of sustainability as an approach for boosting sustainable finance products development in Ghana. Market opportunities can be identified, the integrity of sustainable products can be assured, and stakeholders can be involved with sustainability issues.
Financial institutions which invest in sustainability education and develop a culture that promotes sustainability will enable their staff to come up with innovative financial solutions that support Ghana’s sustainable development goals.
Hilda (MBA, MSc, PMP) is a Senior Analyst, Sustainable Finance at GreenFintech Group
Email: [email protected] or [email protected]
