BoG calls for coordinated approach to climate-related financial risks
The Bank of Ghana (BoG) has called for a proactive and coordinated approach among financial sector regulators to manage climate-related risks and safeguard the stability of the country’s financial system. According to the bank, addressing climate-related and sustainability risks, particularly given their implications for financial stability, requires sustained collaboration and a shared vision…
The Bank of Ghana (BoG) has emphasized the need for a proactive and coordinated effort among financial sector regulators to tackle climate-related risks and maintain the stability of Ghana's financial system. In the foreword to the BoG Roadmap for Sustainable Finance in Ghana, the bank, in collaboration with the Securities and Exchange Commission (SEC), National Insurance Commission (NIC), and National Pensions Regulatory Authority (NPRA), highlighted the significance of addressing climate-related and sustainability risks.
These risks, it noted, could exacerbate existing financial risks and potentially destabilize the entire financial system. The BoG stressed that, as of 2025, the financial sector's total assets were valued at GH¢647.25 billion, amounting to 45.1% of Ghana's GDP. The banking sector contributed the largest share, followed by pensions, securities, and insurance industries.
The interconnected nature of the financial system underscores the importance of collaboration among regulators to devise a unified strategy for addressing these sustainability challenges. The roadmap, designed around three pillars—Environmental, Social, and Governance (ESG) integration, climate-related risk management, and financing sustainability—aims to create a transparent and predictable regulatory environment that supports a smooth transition towards sustainable finance.
Effective management of ESG and climate risks could also generate opportunities by channeling green capital into the financial sector and encouraging the development of innovative financial products. The BoG acknowledged the valuable input from the Sustainable Finance Roadmap Committee, comprising representatives from all four regulatory bodies, along with contributions from the Ministry of Finance, the Institute of Chartered Accountants of Ghana, and the Chartered Institute of Bankers.
It also recognized the technical support provided by the International Finance Corporation (IFC), Swiss State Secretariat for Economic Affairs (SECO), and the Sustainable Banking and Finance Network. The bank highlighted that the successful implementation of this initiative hinges on continued collaboration, institutional commitment, and shared responsibility among all stakeholders.
This effort aligns with Ghana's commitment to achieving its targets under the Paris Agreement and other international sustainability frameworks.
Written by urgent.news from Ghanaian Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
