Embrace ESG for sustainable operations says Kakeeto



Uganda Bankers' Association (UBA) Chairman Julius Kakeeto has encouraged businesses especially banks to embrace Environmental, Social and Governance (ESG) frameworks which are more than a regulatory requirement, but a strategic move towards enduring sustainability and resilience in a dynamic business environment. 

Kakeeto, who was speaking during the Seventh Annual Bankers Conference at Serena Hotel, which was held under the theme: Navigating the future of banking: ESG, Sustainability, and Digital Transformation said banks should embrace ESG as it is a fundamental component of a resilient and sustainable financial future.

“The regulatory landscape is rapidly evolving to support accelerated shift towards a sustainable future and manage the challenges this presents. Embracing ESG is now more than a regulatory requirement but rather a strategic move towards enduring sustainability and resilience in a dynamic business environment,” said Kakeeto.

The conference followed the recent launch of the ESG framework for the banking industry that aimed at championing the process of integrating ESG principles and sustainability into the operations of supervised financial institutions in Uganda.  

 “The case of Uganda provides 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 like Vision 2040 and the National Climate Change Act of 2021,” stressed Kakeeto who is also the Managing Director for Post Bank Limited, a government of Uganda owned bank.

The Bank Of Uganda, Executive Director for Bank Supervision, Tumubweine Twinemanzi, who represented the Bank of Uganda Deputy Governor Martin Atingii Ego reaffirmed BOU’s support towards the banking sector. 

"Bank of Uganda working with UBA established an industry ESG framework that was rolled out two weeks ago. 

"Unlike other countries, in Uganda the Central Bank approached the ESG agenda differently by allowing the banking industry to be at the forefront of the framework and as the regulator we followed. 

"I believe in addition to the guidelines,  we have in place what business operators can adopt while conducting business," said Twinemanzi.

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, Ministry of Finance, said Uganda’s economy is safe and growing at a good rate which is 6%, revealing that it has recovered from various shocks that were affecting it for the last 5 years. 

He mentioned that the Ministry has a good plan for accelerating economic growth.  

Commenting on the ESG move, Ggobbi said government is commitment to climate change adaptation and mitigation measures 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 & social impact, thus we must us fully integrate ESG principles into our business practices for a sustainable business environment,” reaffirmed Kakeeto.

The 7th Annual Uganda Bankers' Conference aimed at briefing stakeholders where the banking & financial sector is on as far as ESG & sustainability and its application in customer/business operations & relations therein, demonstrating & ensuring the industry ESG framework & sustainability strategies align with the national (Government) climate strategy & sustainability agenda/goals and sharing lessons learned in the ESG journey or experience from other jurisdictions (risks, challenges, regulatory frameworks, success stories among others).

It also aimed at promoting sustainable finance initiatives by zooming in on technology as an enabler in the ESG journey and multiplier role of the energy sector and positioning the banking & financial sector in Uganda to attract more collaboration & partnerships in promoting/delivering ESG & Sustainability objectives.

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