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PostBank Uganda Managing Director who also doubles as Uganda Bankers Association (UBA) Chairman, Julius Kakeeto has encouraged businesses to embrace Environmental Sustainability Governance (ESG) practices not just as a regulatory requirement, but also as a strategic move towards enduring sustainability and resilience in a dynamic business environment.
Mr Kakeeto was speaking at the 7th Annual Bankers Conference held under the theme: ‘Navigating the future of banking: ESG, Sustainability, and Digital Transformation,’ held this week at Kampala Serena Hotel.
The conference follows the recent launch of the banking industry ESG framework aimed at championing the process of integrating ESG principles and sustainability into the operations of supervised financial institutions in the country.
“The regulatory landscape is rapidly evolving to support the accelerated shift towards a sustainable future and manage the emerging challenges, thus embracing ESG is now more than a regulatory requirement but rather a strategic move towards enduring sustainability and resilience in a dynamic business environment,” Mr Kakeeto said.
Kakeeto further highlighted the case of Uganda providing a compelling illustration of ESG integration with the National Development Plan (NDP III) incorporating commitments to regional and international development frameworks, including ESG.
The second Nationally Determined Contribution (NDC) outlines ambitious targets, aligned with national policies such as Vision 2040 and the National Climate Change Act of 2021.
Bank Of Uganda Executive Director Supervision, Tumubweine Twinemanzi reaffirmed the central bank’s support towards the banking sector noting that Bank of Uganda working with the Bankers Association established an industry ESG framework that was rolled out two weeks ago.
Twinemanzi said, unlike other countries, the Bank of Uganda approached the ESG agenda differently by allowing the banking industry to be at the forefront of the framework as the regulator played an oversight role.
“I believe in addition to the guidelines we have in place that business operators can adopt while conducting business,” he noted.
The Ministry of Finance Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi stressed government’s commitment to climate change adaptation and mitigation with several policies put in place to support this agenda.
“Financial institutions occupy a pivotal position in addressing ESG risks because they can direct capital towards transformative investments and projects that are sustainable and bring about inclusivity coupled with positive environmental and social impact, ,” Mr. Kakeeto concluded.
The 2024 Uganda Bankers’ Association conference aimed at; briefing stakeholders in the banking and financial sector on the progress of the ESG and sustainability agenda, and its application in customer, and business operations and relations therein.
Demonstrating and ensuring the industry ESG framework & sustainability strategies align with the national (Government) climate strategy & sustainability agenda/goals; sharing lessons learned in the ESG journey or experience from other jurisdictions such risks, challenges, regulatory frameworks, success stories among others.
The conference also tackled promoting sustainable financing initiatives by zooming in on technology as an enabler in the ESG journey and multiplier role of the energy sector, and positioning the banking and financial sector in Uganda to attract more collaboration and partnerships in promoting/delivering ESG and Sustainability objectives.