Constancy Financial institution Ghana has underscored its dedication to integrating local weather adaptation into its core lending technique, highlighting its function in personal capital mobilisation for a climate-resilient future.
Atta Yeboah Gyan, Deputy Managing Director, Operations and Help Capabilities at Constancy Financial institution, shared the financial institution’s modern strategy throughout a panel dialogue on the Africa Adaptation Acceleration Program Partnership Discussion board on the Alisa Lodge in Ghana.
It was underneath the theme “Unlocking development by local weather resilience and personal sector management.”
“At Constancy Financial institution Ghana, we take into account local weather adaptation a strategic crucial — not solely as a threat administration situation, but additionally a worth creation alternative,” Mr. Gyan said, setting the tone for his remarks.
He elaborated on the financial institution’s proactive stance, explaining, “We now have recognized local weather threat as a vital ESG materials subject by our double materiality evaluation, built-in into our environmental and social governance processes.”
This dedication is additional solidified by a sturdy Environmental and Social Administration System (ESMS), meticulously aligned with IFC Efficiency Requirements and the Financial institution of Ghana’s Sustainable Banking Ideas.
“To successfully handle each bodily and transition local weather dangers,” Mr. Gyan continued, “we not too long ago carried out our first portfolio-level local weather situation evaluation throughout our Retail and Company & Funding Banking (CIB) segments.”
This complete evaluation, which additionally included an inside evaluation of potential climate-related disruptions to the financial institution’s branches and ATMs, has immediately knowledgeable the creation of detailed local weather threat heatmaps, considerably enhancing the financial institution’s understanding of publicity and reinforcing long-term resilience.
The financial institution’s three-year Local weather Implementation Plan, aligned with Ghana’s Nationally Decided Contributions (NDCs), additional solidifies this imaginative and prescient, making certain that its financing helps nationwide local weather adaptation priorities.
Constancy Financial institution is deliberately embedding local weather threat screening into its credit score assessments, with a specific give attention to weak sectors reminiscent of agriculture, infrastructure, and SMEs.
Mr. Gyan offered concrete examples: “Throughout our portfolio, particularly agriculture, we’re piloting instruments to evaluate drought and flood vulnerability to extrapolate potential impacts, dangers, and alternatives for our purchasers inside set industries.”
He additionally highlighted the significance of human capital on this endeavour.
“We’re additionally coaching our frontline employees to recognise and reply to adaptation indicators — particularly necessary in markets the place adaptation options are usually not simply seen or monetised.”
Past inside threat administration, Constancy Financial institution is actively working to unlock personal finance for adaptation and resilience throughout Ghana.
He proudly detailed these initiatives: “We’ve launched an Electrical Car (EV) Financing product to advertise inexperienced transport, and asset finance merchandise to assist colleges and hospitals combine photo voltaic power into their power combine, lowering their publicity to power disruptions.”
He emphasised the financial institution’s holistic strategy, stating, “Via our Bridge-in-Agriculture initiative, we’ve supported over 12,000 new jobs and empowered over 20,000 smallholder farmers, with over 60% being ladies — proving that adaptation could be inclusive and bankable.”
Mr. Gyan firmly believes that “blended finance is vital. Working with improvement companions, we will deploy concessional capital or ensures to de-risk climate-smart investments and develop lending to underserved however climate-vulnerable segments.”
Wanting forward, Constancy Financial institution put forth concrete suggestions for the International Heart on Adaptation (GCA) and different stakeholders.
He urged them to “help technical capacity-building for business banks to combine local weather threat instruments into credit score scoring fashions,” “facilitate de-risking devices (e.g., ensures, first-loss capital) to extend business financial institution urge for food for adaptation finance,” “co-develop pipelines of bankable adaptation tasks — significantly in agriculture and native infrastructure,” and “promote standardized local weather threat knowledge, particularly localized bodily threat maps, to enhance decision-making throughout the banking sector.”
Mr. Atta Yeboah Gyan concluded with a robust name to motion: “Adaptation will not be solely important for resilience — it’s also bankable when paired with the precise partnerships, merchandise, and insurance policies. Constancy Financial institution is proud to be main on this entrance in Ghana, and we stay up for working with varied stakeholders current and the International Heart on Adaptation and others to scale our collective affect.”
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