The Development Bank of Ghana (DBG) in partnership with the World Bank and the Ministry of Finance has organized a four-day training package for its partner banks to build their capacity in environmental and social management.

The training, dubbed “Environmental and Social Risk Management (ESRM) Training of Trainers (ToT) Workshop for Financial Institutions (Banks And SDIs) In Ghana” seeks to enlighten financial institutions to embrace healthy environmental social governance in their operations

In this contemporary time where calls for environmental and social management practices have intensified, DBG is hoping to accelerate the compliance of its partner financial institutions with the Bank of Ghana's sustainable banking principles and better position them to receive development financing.

Speaking to JoyNews at the workshop in Koforidua, the Head of ESG, Sustainability & Climate Finance at DBG, John Boateng Akuoko-Tawiah was optimistic that training will transform the financial landscape through the incorporation of sustainable development principles.

“We are really key on this because we believe that through this we're able to provide an additionality into the private sector and also build the financial sector capacity to be able to evaluate the environmental and social exposures that exist in investment and also credit decisions that they make.

“Because this is really a key area where development partners are looking forward to partner banks to have these systems in place so that they can deploy capital to. So again, we are providing that kind of assurance and also providing that kind of additionality to ensure that the funding that is out there can be able to come to Ghana, for development and also for the private sector,” he said on Tuesday.

Delivering a speech at the opening of the workshop, the Director Financial Sector Division at the Finance Ministry, Sampson Akligoh emphasized the importance of the workshop.

According to him, the training exercise would teach banks a comprehensive understanding of the importance of environmental and social sustainability adding that participants will be equipped with the right knowledge, tools and skills needed to integrate best practices in their operations

“Ghana is blessed with diverse ecosystems and rich natural resources, which are vital for its long-term prosperity. Thus, environmental risk management ensures that projects financed by the DBG are designed and implemented in a manner that minimizes negative impacts on the environment... It is against this backdrop that this training has been organized. DBG requires existing and potential participating financial institutions to meet minimum environmental and social requirements as set out in DBG’s Environmental and Social Policy.

“Taken together, this training initiative will contribute to the development of participants to effectively identify, assess, mitigate and manage environmental and social risks associated with the projects. It will also instill a comprehensive understanding of the importance of environmental and social sustainability and equip participants with the knowledge, tools, and skills needed to integrate best practices into the operations of existing and potential PFIs to enhance their compliance with DBG’s environmental and social requirements,” he said.

The four-day training program, which ends on Friday brought together over 35 financial institutions in the country.