Ghanaian companies now have a sensible components to efficiently information their environmental, social and governance (ESG) reporting, because of professional insights shared at a latest webinar collectively organised by the UK-Ghana Chamber of Commerce (UKGCC) and KPMG Ghana.
Talking on the session themed “Making ESG Reporting Work for Your Enterprise”, Bernard Owusu-Ansah, Supervisor in KPMG Ghana’s Governance, Danger and Compliance (GRC) and ESG Providers, underscored that the muse of profitable ESG reporting is in strategic alignment.
“Your ESG priorities should be tied on to your core enterprise drivers,” he emphasised.
“When ESG objectives are linked to efficiency indicators, particularly KPIs for employees, they turn out to be actual and actionable throughout the organisation.” This ensures that sustainability initiatives aren’t perceived as peripheral however built-in into operational selections and management accountability.
Selecting the Proper Framework
The subsequent key step is choosing the suitable reporting framework. The Worldwide Sustainability Requirements Board’s (ISSB) IFRS S1 and S2 are rising as the popular framework for personal sector sustainability reporting, significantly following their adoption and mandate by the Institute of Chartered Accountants Ghana (ICAG) for reporting entities.
As soon as established, ESG knowledge turns into a robust device to inform what you are promoting’ capital story. “It ought to define your influence and resilience plan.”
Mr. Owusu-Ansah famous that complete ESG reporting helps companies construct credible roadmaps for future progress whereas demonstrating their worth proposition to banks and buyers.
Nevertheless, he cautioned towards overcommitment. “Transparency with out accuracy undermines belief. ESG knowledge should be traceable and verifiable.”
He pressured that efficient ESG reporting just isn’t the duty of a single division.
“ESG Reporting must be a shared duty throughout your organisation and folks want to grasp the place their obligations start and finish,” he defined. “Upskill groups, particularly these answerable for materials points, to allow them to meaningfully contribute. That’s the way you create accountability and win with this.”
Communication: The Typically-Forgotten Step
One of many incessantly neglected facets of ESG reporting is inside and exterior communication. Creating consciousness throughout the organisation, amongst buyers, suppliers, and throughout all stakeholders about sustainability influence outcomes is important for maximizing the report’s worth.
“Don’t disguise your completed report,” Mr. Owusu-Ansah urged. Past sharing highlights on firm web sites and thru media channels, companies ought to make their sustainability info accessible by means of devoted studies or built-in annual studies. For publicly listed firms, incorporating ESG disclosures in monetary filings and investor communications has turn out to be a rising greatest apply.
Avoiding Greenwashing: A Rising Danger
The webinar addressed the rising risk of greenwashing, the misrepresentation of sustainability efficiency. Owusu-Ansah urged firms to keep away from deceptive techniques equivalent to intentionally underreporting good influence to keep away from scrutiny, usually revising targets to delay motion and utilizing sustainability language with out substance.
“With ESG reporting, the key phrases are traceability and verification,” he asserted. “If it can’t be independently verified by an knowledgeable get together, it doesn’t belong in your report.”
The implications of greenwashing lengthen past reputational injury. Poor ESG practices can lead to decrease sustainability scores, affecting an organization’s means to entry beneficial financing or insurance coverage phrases.
“No ESG rating? You danger a poor ranking from banks. Some monetary merchandise might be out of attain. The identical applies to insurance coverage, your ESG credentials matter”.
Know-how as an Enabler Not Replacements
As companies discover digital options, the session inspired accountable use of AI and automation in ESG reporting. He, nevertheless, cautioned them to be aware of the stage at which they incorporate AI.
“I at all times subscribe to utilizing AI and automation, however ethically. Know-how ought to deepen perception, not distract from the basics.” He instructed that AI can present invaluable analytical capabilities for producing knowledgeable insights from knowledge. However to be very helpful, it needs to be adopted from the start throughout the technique formulation part.
Wanting Forward: Ghana’s ESG Future
Wanting forward, Mr. Owusu-Ansah affirmed the rising relevance of ESG in Ghana’s financial narrative, particularly because the nation strikes towards power transition and broader sustainability objectives.
“We’re in trade 4.0 the place firms are considered as integral components of society,” he concluded. “Ghanaian companies will more and more be evaluated not simply on monetary metrics however on societal influence. 5 to 10 years from now, your social footprint will matter as a lot as your revenue margin. Put together right now by doing the suitable factor”.
The webinar, moderated by KPMG Ghana’s Bernard Selikem Dzakpasu, lined extra matters together with the excellence between ESG and sustainability reporting, ESG purposes in authorities and commerce facilitation, and standards for high-quality ESG studies.
The session kinds a part of ongoing efforts by UKGCC and KPMG Ghana to reinforce ESG literacy amongst Ghanaian enterprises and promote accountable enterprise transformation.
DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially characterize the views or coverage of Multimedia Group Restricted.
DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially characterize the views or coverage of Multimedia Group Restricted.
Source link
