The Partner, Assurance Services at Deloitte Ghana, Dr. Kwabena Situ, has urged insurance firms to adopt sustainability reporting enshrined in the International Financial Reporting Standards (IFRS) Sustainability Disclosures.

According to him, failure to do so could impact their underwriting business, amongst others. He, however, said sustainability reporting will bring many benefits to their business.

Speaking at a forum organised by the National Insurance Commission on Environmental, Sustainability and Guidance (ESG) for the insurance industry in Ghana, Dr. Situ, expressed the importance of materiality assessment, saying the firms must focus on the ESG issues most relevant to their businesses and stakeholders.

He explained that by anchoring ESG reporting in robust materiality assessments and effective governance, companies can transform sustainability from a compliance task into a powerful driver of long-term value creation.

“Per the NIC guidelines, there is the need to do an impact materiality assessment (ESG) and not financial materiality assessment. In doing the impact assessment, you need to have an ESG vision”, he added.

Strong governance emerged as another critical factor. Dr. Situ said without leadership commitment and strategic buy-in, sustainability initiatives rarely deliver lasting results.

The workshop focused on the new IFRS Sustainability Disclosure Standards IFRS S1 and S2 and their role in elevating ESG reporting.

The discussion covered practical steps for conducting materiality assessment, such as engaging stakeholders, identifying and prioritising ESG risks and opportunities and aligning these findings with business strategy.