By Gladys Opoku ANNING
The world no longer needs more profit-driven companies. It needs purpose-driven ones. Who will lead when profits alone are no longer enough? Who will stand accountable when the tides of climate, inequality, and broken governance rise against us?
The call for responsible leadership is no longer distant; it is here, it is now. Environmental, Social, and Governance (ESG) principles are not just corporate checklists; they are deliberate choices that shape whether our growth stories will heal communities, safeguard the environment, and restore trust in leadership.
For Ghana and other emerging markets, the question is no longer if ESG matters, it’s about leading with it. The urgency to demystify ESG has never been greater.
Understanding ESG in practical terms
At its core, ESG refers to three critical dimensions of sustainable operations:
- Environmental: How a company manages its impact on the environment—energy use, emissions, waste, and biodiversity.
- Social: How it treats employees, suppliers, communities, and customers, including labour rights, diversity, and community development.
- Governance: How a company is led, including its board structure, ethics, transparency, and compliance.
ESG is not a Western import. It is a strategic tool for risk management, resilience, and long-term value creation. In Ghana, where 80percent of employment is driven by small and medium-sized enterprises (SMEs), integrating ESG is essential to securing international investment, fostering community trust, and building sustainable enterprises.
The case for ESG in Ghana’s development
Ghana’s economy, though resilient, remains vulnerable to global shocks, environmental degradation, and governance lapses. In 2023, the Ghana Statistical Service reported that 43.6percent of households experienced climate-related shocks such as floods or droughts. These events are not just environmental, they are economic threats that reduce productivity, destroy property, and increase poverty.
Investor appetite for ESG-aligned projects is growing globally
According to the Global Sustainable Investment Alliance (GSIA), sustainable investment assets reached over US$30 trillion in 2023. For Ghanaian companies, adopting ESG practices increases access to this capital. For instance, Ghana’s maiden green bond issuance planned for 2025 could fund clean energy, sustainable agriculture, and green transport projects but only if backed by credible ESG disclosures.
Why ESG has struggled in Ghana
Despite the promise, ESG uptake in Ghana faces several barriers:
- Lack of awareness: Many businesses, especially SMEs, do not understand what ESG entails or how it applies to them.
- Data limitations: Inconsistent data collection and weak verification mechanisms lead to greenwashing, claims that look good on paper but lack substance.
- Cost of compliance: Smaller businesses often view ESG reporting as costly and burdensome.
Moreover, voluntary ESG reporting is rare in Ghana. Most publicly listed companies on the Ghana Stock Exchange do not consistently report their ESG performance, and there’s limited regulatory enforcement compared to the European Union or South Africa.
Practical solutions for Ghanaian stakeholders
To make ESG meaningful and impactful, Ghana must localize strategies that are affordable, relevant, and credible.
- ESG literacy for SMEs and corporates
Ghana’s private sector needs targeted ESG capacity building. Industry associations such as the Ghana National Chamber of Commerce and Industry (GNCCI) and AGI can partner with academia and development partners to roll out ESG toolkits tailored for local businesses. These should focus on:
- How to measure basic environmental impact (e.g., energy and water usage)
- Social inclusion practices (e.g., fair wages, gender diversity)
- Governance frameworks (e.g., anti-corruption practices)
- Mandatory ESG guidelines and phased compliance
The Securities and Exchange Commission (SEC) and Bank of Ghana can develop a phased ESG disclosure roadmap for listed companies, beginning with material issues and gradually expanding. Ghana can draw inspiration from Nigeria’s Sustainability Disclosure Guidelines (2021), which make ESG reporting mandatory for all listed firms.
- Tech-enabled ESG monitoring
Technology can reduce the burden of compliance. Mobile platforms and AI-enabled dashboards can collect ESG data from SMEs in informal sectors. For example, an app that allows farmers to report sustainable practices could be linked to credit scoring systems, enhancing their access to green finance.
ESG in the informal sector: An untapped opportunity
With over 70percent of Ghana’s workforce in the informal sector, sustainable practices cannot be confined to formal corporations. Tailored ESG frameworks for informal businesses such as traders, artisans, and smallholder farmers can include:
- Environmental education on waste disposal and energy use
- Community codes of ethics and fair labour practices
- Basic record-keeping for transparency
These actions can form the basis of a national ‘ESG for Informality’ policy, making sustainability part of Ghana’s broader financial inclusion agenda.
The Ghana opportunity
The world’s next frontier of sustainable growth is not in saturated Western markets, it is here in Africa, where green solutions can be built from the ground up. The green race is unfolding across Africa in real time. Nigeria is already enforcing sustainability disclosures. Kenya is pushing green finance regulations. South Africa is attracting billions in ESG-linked investments. Ghana’s potential is undeniable, but potential without participation is a silent loss.
Ghanaian businesses, regulators, and innovators must claim their seat now or risk watching others shape the sustainability story without them. The government, private sector, and civil society must now work together to embed ESG into the DNA of Ghana’s development model. The global market is already listening, what will Ghana’s contribution be?
>>>the writer is not just a public speaker, she’s a voice for change. As a dynamic corporate host and financial literacy advocate, she blends business intelligence with human insight to drive transformation. She doesn’t just speak, she connects, builds, and ignites. In every space she steps into, she sparks clarity, challenges thinking, and leaves people better than she found them. With a deep passion for empowering others, Gladys fosters growth, instils confidence, and creates lasting impact through every initiative she leads. She can be reached via +233 544 544 301 and or [email protected], linkedin.com/in/gladys-opoku-anning
