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Strengthening environmental, social governance in Uganda
In the Ugandan context, ESG performance is perceived to be a corporate social responsibility rather than a strategic sustainability framework,” writes Mayanja Joshua
Mayanja Joshua. (Courtesy)
By: Admin ., Journalist @New Vision
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OPINION
By Mayanja Joshua
Environmental, Social and Governance (ESG) has emerged as a critical framework for evaluating the sustainability and ethical impact of business operations globally. The Uganda Bankers Association (UBA) introduced the ESG performance framework (UBA, 2024). Accordingly, green financing has been adopted among Banks in Uganda with the aim of protecting the Environment.
Furthermore, some banks embraced social aspects, such as sponsoring the Rotary cancer run under the slogan “Gwanga Mujje 2026”, which called upon all Ugandans to fight cancer. The funds raised from the Rotary cancer run shall be used to build, complete and equip modern cancer treatment centres, specifically the specialised cancer facility and radiation bunkers for advanced linear accelerator machines at St Francis Hospital Nsambya.
Furthermore, some banks embraced social aspects, such as sponsoring the Rotary cancer run under the slogan “Gwanga Mujje 2026”, which called upon all Ugandans to fight cancer. The funds raised from the Rotary cancer run shall be used to build, complete and equip modern cancer treatment centres, specifically the specialised cancer facility and radiation bunkers for advanced linear accelerator machines at St Francis Hospital Nsambya.
In the Ugandan context, ESG performance is perceived to be a corporate social responsibility rather than a strategic sustainability framework. However, the commercial banking sector in Uganda has shifted ESG principles from peripheral corporate social responsibility (CSR) activities to core operational and strategic imperatives, which has played a pivotal role as a catalyst for sustainable economic development. Ugandan banks has embraced ESG by digitising operations to reduce paper consumption, incorporating Environmental and Social Management Systems (ESMS) into loan appraisal processes, reducing exposure to ecologically harmful projects, and directing capital to historically underserved segments, specifically micro, small, and medium enterprises (MSMEs), women entrepreneurs, and rural agricultural value chains.
My humble proposal, therefore, is that all other sectors in the country should benchmark on the Ugandan banking industry on the implementation of an ESG framework. Furthermore, incorporating ESG into the education curriculum across the Ugandan education system would also yield positive results towards strengthening ESG performance in our country’s future.
Strong ESG compliance mitigates Climate change, exposure to environmental fines, supply chain disruptions, and labour disputes, and reduces waste and energy usage, which lowers operating costs, hence enhancing long-term sustainability.
Finally, let us embark on ESG best practices for the betterment of Uganda’s future.
My humble proposal, therefore, is that all other sectors in the country should benchmark on the Ugandan banking industry on the implementation of an ESG framework. Furthermore, incorporating ESG into the education curriculum across the Ugandan education system would also yield positive results towards strengthening ESG performance in our country’s future.
Strong ESG compliance mitigates Climate change, exposure to environmental fines, supply chain disruptions, and labour disputes, and reduces waste and energy usage, which lowers operating costs, hence enhancing long-term sustainability.
Finally, let us embark on ESG best practices for the betterment of Uganda’s future.