Summary:
- At the 7th Annual Bankers Conference in Kampala, PostBank Uganda Managing Director Julius Kakeeto emphasized that adopting Environmental Sustainability Governance (ESG) practices is essential for business resilience and sustainability. He highlighted that ESG integration is not just a regulatory requirement but a strategic necessity.
KAMPALA, (Examiner) – In a compelling address at the 7th Annual Bankers Conference in Kampala, Julius Kakeeto, Managing Director of PostBank Uganda and Chairman of the Uganda Bankers Association (UBA), urged businesses to adopt Environmental Sustainability Governance (ESG) practices. Kakeeto emphasized that ESG is not merely a regulatory requirement but a strategic move crucial for achieving enduring sustainability and resilience in an ever-evolving business landscape.
The conference comes on the heels of the banking industry’s launch of an ESG framework designed to integrate sustainability principles into the operations of financial institutions across Uganda. Held under the theme “Navigating the Future of Banking: ESG, Sustainability, and Digital Transformation,” the event highlighted the growing importance of ESG in the financial sector.
Kakeeto underscored the significance of ESG, stating, “The regulatory landscape is rapidly evolving to support the accelerated shift towards a sustainable future. Embracing ESG is now more than a regulatory requirement; it is a strategic move towards enduring sustainability and resilience in a dynamic business environment.”
He further pointed to Uganda’s commitment to ESG integration, referencing the National Development Plan (NDP III) and the National Climate Change Act of 2021. These frameworks align with international commitments and outline ambitious targets for sustainable development.
Echoing Kakeeto’s sentiments, Tumubweine Twinemanzi, Executive Director of the Bank Supervision Directorate at Bank of Uganda, reaffirmed the central bank’s support for the sector. Twinemanzi noted that Uganda’s approach to ESG places the banking industry at the forefront, with the central bank following suit.
Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, Ministry of Finance, highlighted the country’s economic growth, currently at 6%, and its resilience in recovering from recent economic shocks. Ggoobi reiterated the government’s commitment to climate change adaptation and mitigation, supported by robust policies.
Concluding the conference, Kakeeto emphasized the critical role of financial institutions in addressing ESG risks and directing capital towards sustainable investments. “Financial institutions must fully integrate ESG principles into their business practices to ensure a sustainable business environment,” he stated.
