Ghanaian businesses now have a practical formula to successfully guide their environmental, social and governance (ESG) reporting, thanks to expert insights shared at a recent webinar jointly organised by the UK-Ghana Chamber of Commerce (UKGCC) and KPMG Ghana.

Speaking at the session themed “Making ESG Reporting Work for Your Business”, Bernard Owusu-Ansah, Manager in KPMG Ghana’s Governance, Risk and Compliance (GRC) and ESG Services, underscored that the foundation of successful ESG reporting is in strategic alignment.

“Your ESG priorities must be tied directly to your core business drivers,” he emphasised.

“When ESG goals are linked to performance indicators, especially KPIs for staff, they become real and actionable within the organisation.” This ensures that sustainability initiatives are not perceived as peripheral but integrated into operational decisions and leadership accountability.

Choosing the Right Framework

The next key step is selecting the right reporting framework. The International Sustainability Standards Board's (ISSB) IFRS S1 and S2 are emerging as the preferred framework for private sector sustainability reporting, particularly following their adoption and mandate by the Institute of Chartered Accountants Ghana (ICAG) for reporting entities.

Once established, ESG data becomes a powerful tool to tell your business’ capital story. “It should outline your impact and resilience plan.”

Mr. Owusu-Ansah noted that comprehensive ESG reporting helps businesses build credible roadmaps for future growth while demonstrating their value proposition to banks and investors.

However, he cautioned against overcommitment. “Transparency without accuracy undermines trust. ESG data must be traceable and verifiable.”

He stressed that effective ESG reporting is not the responsibility of a single department.

“ESG Reporting needs to be a shared responsibility across your organisation and people need to understand where their responsibilities begin and end,” he explained. “Upskill teams, especially those responsible for material issues, so they can meaningfully contribute. That’s how you create accountability and win with this.”

Communication: The Often-Forgotten Step

One of the frequently overlooked aspects of ESG reporting is internal and external communication. Creating awareness within the organisation, amongst investors, suppliers, and across all stakeholders about sustainability impact results is essential for maximizing the report’s value.

“Don’t hide your finished report,” Mr. Owusu-Ansah urged. Beyond sharing highlights on company websites and through media channels, businesses should make their sustainability information accessible through dedicated reports or integrated annual reports. For publicly listed companies, incorporating ESG disclosures in financial filings and investor communications has become a growing best practice.

Avoiding Greenwashing: A Growing Risk

The webinar addressed the growing threat of greenwashing, the misrepresentation of sustainability performance. Owusu-Ansah urged companies to avoid misleading tactics such as deliberately underreporting good impact to avoid scrutiny, regularly revising targets to delay action and using sustainability language without substance.

“With ESG reporting, the keywords are traceability and verification,” he asserted. “If it cannot be independently verified by an informed party, it does not belong in your report.”

The consequences of greenwashing extend beyond reputational damage. Poor ESG practices can result in lower sustainability scores, affecting a company's ability to access favourable financing or insurance terms.

“No ESG score? You risk a poor rating from banks. Some financial products will be out of reach. The same applies to insurance, your ESG credentials matter”.

Technology as an Enabler Not Replacements

As businesses explore digital solutions, the session encouraged responsible use of AI and automation in ESG reporting. He, however, cautioned them to be mindful of the stage at which they incorporate AI.

“I always subscribe to using AI and automation, but ethically. Technology should deepen insight, not distract from the fundamentals.” He suggested that AI can provide valuable analytical capabilities for generating informed insights from data. But to be very useful, it has to be adopted from the beginning during the strategy formulation phase.

Looking Ahead: Ghana’s ESG Future

Looking ahead, Mr. Owusu-Ansah affirmed the growing relevance of ESG in Ghana’s economic narrative, especially as the country moves toward energy transition and broader sustainability goals.

“We are in industry 4.0 where companies are viewed as integral parts of society,” he concluded. “Ghanaian businesses will increasingly be evaluated not just on financial metrics but on societal impact. Five to ten years from now, your social footprint will matter as much as your profit margin. Prepare today by doing the right thing".

The webinar, moderated by KPMG Ghana's Bernard Selikem Dzakpasu, covered additional topics including the distinction between ESG and sustainability reporting, ESG applications in government and trade facilitation, and criteria for high-quality ESG reports.

The session forms part of ongoing efforts by UKGCC and KPMG Ghana to enhance ESG literacy among Ghanaian enterprises and promote responsible business transformation.