The Chief Executive Officer of the Development Bank of Ghana (DBG), Kwamena Duker, says the DBG signing onto the United Nations Global Compact is a step in the right direction to fostering investor confidence.

The Development Bank Ghana (DBG) on Wednesday signed onto the United Nations Global Compact as part of the Bank’s efforts to strengthen its commitments and operations with a sustainable business and greater governance framework.

The United Nations Global Compact is a United Nations pact which enjoins its signatories, mostly businesses and firms worldwide to adopt sustainable and socially responsible policies and to report on their implementation.

The Compact has a ten-principle based framework for businesses. This enables them to operate in ways which meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption which form the pillars of the UN Global Compact.

By incorporating the Ten Principles of the UN Global Compact into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success.

Speaking to the media after the signing, Mr. Duker noted that joining the UN Global Compact will give reassurance to the Bank’s stakeholders on its commitment to transform the Ghanaian local industry in an ethical manner.

He said, “It’s important because it gives us gravitas, it allows stakeholders who have made investments in us; EIB, World Bank, AfDB, it reassures them about the kind of bank that we’re trying to build. And that to us is very important, because as we go about our mandate, and our mandate is to transform local businesses, and our specialty is to provide long-term seed financing.

“At some stage you’ll go back to these stakeholders for replenishment and they will look at how we have behaved and they will look at our governance and they will look to see whether we supported ESG, whether we supported the development principles and if we have passed that test we will be replenished.

“And if we’re replenished, our banks that we support will be replenished and local businesses will be replenished. And that is the key to doing business as a development bank.”

He noted that the DBG will ensure all institutions it supports also exhibit same ethical governance standards and operate in a manner that is geared towards achieving a sustainable business environment.

The United Nations Global Compact is the world’s largest corporate sustainability initiative with 13,000 corporate participants and other stakeholders over 170 countries with the objectives of mainstreaming the 10 principles in business activities around the world and to catalyse actions in support of broader United Nations goals such as the Sustainable Development Goals.