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 among all relevant regulatory authorities.
The call was contained in the foreword to the BoG Roadmap for Sustainable Finance in Ghana, jointly signed by the Governor of the BoG, Dr Johnson Pandit Asiama, and the heads of the Securities and Exchange Commission (SEC), National Insurance Commission (NIC) and National Pensions Regulatory Authority (NPRA).
The roadmap, developed by the BoG in collaboration with the three regulatory institutions, was sponsored by the Swiss State Secretariat for Economic Affairs (SECO) and the International Finance Corporation (IFC).
The bank said climate change and sustainability issues had emerged as significant and evolving sources of risk, capable of amplifying traditional financial risks and threatening the stability of the financial system.
It noted that Ghana’s financial sector, comprising the banking, pensions, securities and insurance industries, was highly interconnected, with each segment operating under a distinct statutory mandate.
The BoG said that, as of 2025, total financial sector assets stood at GH¢647.25 billion, representing 45.1 per cent of gross domestic product (GDP).
The banking sector accounted for 75.6 per cent of the assets, followed by the pensions industry with 16.8 per cent, the securities industry with 4.2 per cent and the insurance industry with 3.4 per cent.
“These figures underscore the critical role of the financial sector in supporting Ghana’s economic development,” the bank stated, adding that climate-related risks could have widespread adverse effects across multiple sectors of the economy.
It said the interconnected nature of the financial system made collaboration among regulators essential to ensure a harmonised response to emerging sustainability challenges.
“In light of these developments, we must adopt a proactive and coordinated approach to managing these risks,” the foreword stated.
The roadmap, it said, represented a significant milestone in aligning efforts to address sustainability and climate-related risks while harnessing emerging opportunities.
It was designed to provide a credible, transparent and predictable regulatory framework to guide the financial sector and facilitate a smooth and orderly transition towards sustainable finance.
The framework is anchored on three pillars: Environmental, Social and Governance (ESG) integration, climate-related risk management and financing sustainability.
According to the bank, effective management of ESG and climate-related risks could also create opportunities by directing green capital into Ghana’s financial sector and encouraging financial institutions to develop innovative products.
The roadmap further seeks to promote informed, forward-looking and prudent decision-making across the industry, while strengthening the financial system’s resilience to environmental and sustainability challenges.
The BoG acknowledged the contributions of the Sustainable Finance Roadmap Committee, comprising representatives of the four regulatory institutions, with support from the Ministry of Finance, the Institute of Chartered Accountants, Ghana, and the Chartered Institute of Bankers.
It also expressed appreciation to the IFC, SECO and the Sustainable Banking and Finance Network for their technical expertise and support.
The bank stressed that successful implementation would depend on sustained collaboration, institutional commitment and shared responsibility among stakeholders.
It said the initiative was consistent with Ghana’s commitment to meeting its targets under the Paris Agreement and other international sustainability frameworks.
BY KINGSLEY ASARE
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