By Elizabeth PUNSU, Kumasi
Shoes manufacturers and other local small medium enterprises (SMEs) have been sensitised on the importance of incorporating environmental, social and governance (ESG) principles in their line of work.
ESG systems have become essential for small and medium enterprises due to the growing recognition of their importance in risk management, compliance, access to capital, reputation, cost savings, innovation, competitiveness, sustainability, stakeholder expectations and due diligence.
These ESG principles, such as using recycled products, treating staff well, having a well laid out roles for workers and keeping proper records among others, when incorporated, lead to several benefits, including sustainability of the manufacturing firm for generations unborn.
Speaking at a one-day capacity-building for some shoe manufacturers and SMEs organised by Access Bank in partnership with DBG in Kumasi, Head, ESG Climate Finance and Sustainability, Development Bank Ghana, Freda Adjoa Oforiwaa Mantey, said practising ESG would not only boost production and profitability but ensure sustainability of the business.
“When you incorporate ESG principles, it has a positive impact on your business; it makes the business attractive to investors, especially when you use recycled products which will ensure sustainable financing for the business,” she highlighted.
In an interview with journalists at the workshop, Head, SME & Support, Eugenia Oduraa Addo, mentioned that this capacity-building workshop is part of activities in the SME week. Where the bank is focusing on the local shoe industry as well as other industries to ensure they practise proper ESG principles to boost their growth.
“We want to see real growth and they should use whatever they are learning here for their work. We are training them on financial literacy – accounting, inventory, etc., and ESG practices. We realised there is a gap – that SMEs don’t really incorporate ESG in their businesses. We are doing ESG training for them to know how their businesses can affect the environment and what they can do to protect the environment in their business operations,” Ms. Addo emphasised.
To enhance the workshop’s practicality, Kabutey Ocansey, Director of Horseman Shoes, urged participants to work diligently and integrate ESG principles as these would get them the assistance and investors when need be.
He used Horseman as a case study, highlighting that their dedication, commitment and practising proper work ethic, including incorporating ESG to their business, led them to successfully bid for Access Bank’s ‘A Sandal More for a Better Tomorrow’ initiative aimed at providing sandals for 20,000 pupils.
Mr. Ocansey indicated that to ensure the project’s success, Horseman Shoes has engaged an additional 500 shoe manufacturers; thus, creating more job opportunities. Already they have distributed 5,000 pairs of shoes to basic school pupils across the country.
