Deputy Governor BOU Michael Ating-Ego urges UBA members to embrace ESG practices to drive sustainable growth

Deputy Governor BOU Michael Ating-Ego urges UBA members to embrace ESG practices to drive sustainable growth
Deputy Governor BOU Michael Ating-Ego(2nd R) during the launch of ESG framework

On Tuesday 6th June 2024, the Uganda Bankers Association (UBA) and its partners launched the Environmental, social, and governance (ESG) Framework to guide the financial institutions industry to link banking services to ESG practices.  On the same day the Uganda Bankers Association also launched the 7th edition of the Annual Banker's Conference due to take place on the 19th June 2024 in Kampala.

The Deputy Governor, Bank Of Uganda, Michael Ating-Ego while launching the Environmental, Social, and Governance (ESG) Framework for the Banking Industry at Serena Hotel, highlighted the importance of ESG to the banking industry which he said will go a long way in promoting sustainable practice that addresses various challenges including climate change, social inequalities, resource depletion among others.

“We witness a milestone as we launch ESG Framework for the Banking Industry. This pioneering initiative will transform our collective approach to promoting best practices in ESG matters. The urgency of sustainability cannot be overstated. Our planet faces unprecedented challenges, from climate change to resource depletion and social inequalities. A unified approach with policy guidance and capacity building is crucial to achieving measurable progress and assessing the industry's impact. The Industry ESG Framework directly addresses this need” he said

Deputy Governor Michael Ating-Ego

He added that commitment in integrating the ESG practices in the financial sector will promote growth of the community sustainably.

“It promotes a holistic and harmonized approach, ensuring measurable benefits for the sector and, ultimately, economic transformation. This framework signifies our commitment to embedding ESG principles within the financial sector, driving positive change” he said

The Chairman UBA Mr. Julius Kakeeto while officially launching the 7th edition of the Annual Banker's Conference the conference’s theme “Navigating the Future of Banking: ESG, Sustainability and Digital Transformation” aims to shine a light on sustainability through climate and environmental advocacy initiatives, encouraging the sector to be more wary of its impact on the planet, sustainable practices along with the digital transformation of the industry at large.

Chairman UBA Mr. Julius Kakeeto

The Chairman said during a press conference on Tuesday said "We have chosen ESG for a number of reasons, one being the interconnectedness between financial performance and ESG practices. The framework launched this morning will guide the banking industry on how to integrate its principles across their operations, from governance to products, policies, and processes."

He added that integrating technology and digital transformation into bank operations can help effectively manage ESG data, enhance reporting accuracy, and drive sustainable investment. It can also enhance the operational efficiency of financial institutions, enabling them to serve their clients effectively.

The Bankers' Conference is an annual conference organised by UBA and partners including Mastercard, aBi Finance among other sponsors. It attrcts regulators, practitioners and various indusrty experts from domestic, regional and international and national spheres involved in delivering financial or bankig services.