Partner, Assurance at Deloitte Ghana, Dr. Kwabena Situ, has urged organisations to take proactive approach to integrate sustainability- related risks into their strategies, whilst ensuring they align with their long-term goals.

According to him, this will lead to enhanced profitability and a stronger competitive position in the market.

Speaking as a panelist at the 2024 Board/CEO/CAE Governance Forum orgnanised by the Institute of Internal Auditors, Dr. Situ said the role of management in governance is equally essential in the management of sustainability related matters.

“We are currently managing specific types of risks that provide us with a certain level of profit. Sustainability-related risks and opportunities represent another layer of risk we will manage, and if handled well, they could significantly improve our current profit levels”, he mentioned.

"We have been accustomed to risks such as credit risk and financial risk. Now, we are introducing a new type of risk - the sustainability-related risk. This requires a deliberate and strategic approach because we are used to managing certain types of risks, and this shift demands careful planning”, he added.

He indicated that there are two key ways to manage and incorporate sustainability-related risks into the day-to-day business activities.

First is the governance body such as the board, a committee or an equivalent body within the organisation.

He alluded that organisations must assess the composition of their governance body because the governance body and the role of management in governance are very important.

To adapt, Dr. Situ said, companies have two options, either upskill the current members of the governance body or bring in a sustainability expert to join the team.

Secondly, the current board members can be trained to understand and engage with sustainability-related topics.

The 2024 Board/CEO/CAE Governance Forum brought together experts withing the internal audit and professional services sector.