UBA unveils ESG Framework ahead of Banker's Conference

Julius Kakeeto, the UBA Chairman, told the press that the focus this year is ESG because of its link between financial performance and good ESG practices.

"ESG enhances accountability to society, investors, customers and other stakeholders when we embed environmental, social and governance considerations into your operations," he said.

ESG stands for Environmental, Social, and Governance factors. Financial institutions use ESG to analyse investments and guide decisions. This considers a company's impact on the environment, its workforce, and how it's run. ESG helps the financial sector manage risk, attract investors with similar values, and drive positive change.

Julius Kakeeto, the UBA Chairman pulse uganda

The conference, Kakeeto said, will facilitate focused discussions on the opportunities in supporting investments in ESG and highlight the challenges related to ESG while providing recommendations on how ESG principles can be integrated into financial strategies.

Also read: New UBA Boss Kakeeto talks banking industry direction, hurdles ahead

UBA Executive Director, Wilbrod Owor, announced Dr Martin Oduor-Otieno, Chairman and CEO of Leadership Group Ltd, as the guest speaker at this year's conference.

"We have lined up a number of speakers with expertise on the subject matter. We also have panel discussions that will tackle topics including energy, sustainability, and the digital revolution," Mr Owor said at the press conference.

Earlier Launch of the ESG Framework

Earlier in the day, UBA launched the ESG framework for the Ugandan banking industry.

The Framework was officially launched by Deputy Governor, Michael Atingi-Ego, who emphasised the role banks must play in promoting social and economic transformation through ESG.

"The financial sector must take the lead in addressing the world's pressing issues. By integrating ESG considerations into our operations and strategies, we can mitigate risks and unlock new opportunities," he said.

UBA officials and sponsors addressing press pulse uganda

The Bank of Uganda supported the development of the framework following a 2022 survey that found a lack of consistency in how financial institutions implement ESG.

"The Bank of Uganda aims to become a sustainability-certified central bank and we have enrolled in the sustainability standards and certification initiatives by the European Organisation for Sustainable Development (EOSD)," said the Deputy Governor.

UBA Chairman, Mr Kakeeto, said the ESG framework will, among other things, help financial institutions thrive in a changing financial landscape while contributing positively to the environment and society.

He added that the framework will help guide UBA members through processes such as securing and allocating resources, building capacity to implement ESG activities, and avoiding or mitigating risk.

"Today marks the beginning of an important milestone in our ESG journey. Real progress will be measured by how much we collectively put it into action. We are very grateful to you all for joining us this morning and to the Deputy Governor for launching the framework."

Commitment from Sponsors

Rachel Kadama from Mastercard, one of the sponsors of the Bankers' Conference, reiterated her company's commitment to facilitating the growth of the banking sector in Uganda.

"We also aim to empower communities, support sustainable development and nurture inclusive growth for everyone, everywhere," she said.

Mona Muguma Ssebuliba, Chief Executive Officer of aBi Finance Limited, another conference sponsor, said that supporting such an initiative aligns perfectly with her organisation's mandate.

"While our focus is mainly on financial inclusion in agribusiness, any institution that understands environmental management, social inclusion and good governance will naturally have a better understanding of the factors affecting the sector," he added.