BOG moves to tackle climate risk financing 

The Bank of Ghana (BOG) in its quest to strengthen the financial sector has taken steps aimed at mitigating the impact of climate risk in the books of financial institutions.

“The issue of climate risk is increasingly becoming a material risk, especially for institutions exposed to vulnerable sectors of the economy” says Governor. Dr. Ernest Addison at the 60th anniversary celebrations of the Chartered Institute of Bankers.

To minimize these threats, the Central Bank will soon adopt a framework to serve as a working document in that regard.

The BOG is working on issuing a Climate-related Financial Risk Directive to provide guidance on addressing climate risk and related issues in the industry. These initiatives are aimed at building a robust financial system”, Govenor Addison further revealed.

He also announced that the BOG has successfully completed industry training on all seven Ghana Sustainable Banking Principles.

Highlighting, the Ghana Sustainable Banking Principles and the Sector Guidance Notes, he said that remains a process-led initiative that takes into account the environmental considerations, social inclusion, and good governance in the lending decision-making by banks in Ghana.

“It is also a guide to banks in mainstreaming the fundamental tenets of sustainability in business and operations, leading to enhanced growth and increased returns”, the Govenor stressed.

Source: Ghana Business

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