THE GHANA

BUSINESS
SUSTAINABILITY
REPORT
Q4 2023 EDITION
A Quarterly Sustainability Report
TABLE OF CONTENT

FORWARD 01

PUBLISHERS AND CONTRIBUTORS 02

REVIEW OF REGULATIONS ON ENERGY MATTERS IN GHANA 03

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) UPDATES 04

FINANCE UPDATES 05

LABOUR AND EMPLOYMENT UPDATES 06

TRADE, TAX AND DISPUTES UPDATES 07

TRENDS AND INNOVATIONS 08

INSIGHTS 09

INDUSTRY SPOTLIGHT – MALTA GUINNESS 10

PAST AND UPCOMING EVENTS 11

FORWARD
Dear Esteemed Readers, Richard Nunekpeku , The Editor

In this ever-evolving era of

In the finance realm, our construction players before
business dynamics, we are
report delves into the Ghana breaking ground, define what
thrilled to present the 4th
Alternative Market as an inno- sustainability should mean to
Quarter edition of the Ghana
vative vehicle for raising capi- everyone, and explore emerg-
Business Sustainability
tal. Additionally, we provide ing sustainable office man-
Report. This edition aims to
updates on the guidelines for agement practices.
provide a comprehensive
green bonds in Ghana, show-
exploration of key aspects,
casing how businesses can Our industry spotlight
reflecting the latest insights
leverage these financial tools features the laudable initiative
and trends impacting the
to support sustainability initia- by Guinness Ghana Breweries
business landscape in Ghana.
tives. Limited (GGBL) to package its
iconic Malta Guinness in
As we navigate through the
The Labour Updates section eco-friendly transparent PET
challenges and opportunities
explores the emerging bottles, showcasing a com-
in the current business
talent-as-a-service trend, mendable effort towards envi-
climate, our report takes a
offering insights into how ronmental responsibility.
deep dive into the regulations
businesses can effectively
concerning energy matters,
recruit and retain the right Lastly, we provided a compre-
specifically power generation
human resources in today's hensive overview of past
and distribution, renewable
technological world. events and discussed upcom-
energy, and customer service
ing ones, ensuring our readers
in Ghana. We believe that
We also assess the opportuni- are well-informed about the
understanding these regula-
ties for SMEs and Entrepre- latest happenings in the busi-
tory landscapes is vital for
neurs in Ghana stemming ness sphere.
businesses striving for
from the Africa Continental
sustainability in the energy
Free Trade Area (AfCFTA), a We invite you to immerse
sector.
critical analysis that can guide yourselves in the knowledge
businesses in harnessing the and insights presented in this
Furthermore, we shed light on
benefits of this continental edition, keeping a commit-
the incorporation of reporting
trade agreement. ment to sustainability at the
frameworks for Environmen-
forefront of your endeavors.
tal and Governance demands
As we delve into 2024, the Your dedication to these prin-
under Environmental, Social,
report discusses trends and ciples will not only foster the
and Governance (ESG) princi-
innovations such as the circu- success of your businesses but
ples into the Ghanaian busi-
lar economy and outlines key will also contribute to a more
ness environment. This
business trends to watch out sustainable and prosperous
section aims to guide busi-
for in the coming year. future for all.
nesses in aligning with global
standards and best practices
In the Insights section, we Thank you!!!
in sustainability reporting.
highlight considerations for

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 01

PUBLISHERS & CONTRIBUTORS
ABOUT THE FIRM ment, professional experi- and practical approach in our
ence, and commercial knowl- value-added legal service
We are Ghana’s foremost edge to provide solutions that delivery – and employing our
Fintech and Start-up focused do not only address immedi- problem-solving skills.
law firm, committed to provid- ate legal needs but also antici-
ing differentiated legal pate future challenges and Our goal is to help businesses
services by leveraging our opportunities. to become commercially
experience as proven entre- sound and viable, as well as
preneurs, business managers, Our pride as the foremost regulatorily compliant, by
and business lawyers which Fintech and Start-up focused engaging in legal and benefi-
allows us to think and act like law firm stems not only from cial transactions to promote
entrepreneurs, business our understanding of the their business competitive-
owners, and managers we potentials of emerging tech- ness for sustained operations
work with at all times. nologies and our belief in the and investments.
ideas of many young people
As a team of young legal prac- but also from the difference And as our name implies, our
titioners, SUSTINERI ATTOR- our network of resources and priority is to always leverage
NEYS PRUC takes pride in experiences can make when legal means to promote the
acting with integrity, avoiding working closely with founders sustainability (long-term
conflicts, and working with and entrepreneurs. To this viability) of our clients’ busi-
clients to design innovative end, we operate a 24-hour nesses.
legal solutions that meet their policy urging our clients to
specific needs. reach out to us at any time We are different, and the
and on any issue. preferred partner for growth.
At SUSTINERI ATTORNEYS
PRUC, we consider every We strive for excellence,
client’s brief as an opportunity
to use our sound understand-
ensuring that our solutions
provide sustainable paths for SUSTINERI
ing of Ghana’s business, com- our clients’ businesses by ATTORNEYS
mercial and legal environ- adopting a common-sense

CONTRIBUTORS

Richard Nunekpeku, Gafaru Ali, Karen Mma Adaare,

Managing Partner Senior Associate Associate
[email protected] [email protected] [email protected]

Adwoa Birago Nyantakyi, Harold Kwabena Fearon, Dennis Yaw Helena Ama Yartel ,
Associate Associate Matekpor Hedihor, Business Manager
Trainee Associate [email protected]
[email protected] [email protected]
[email protected]

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 02

REVIEW OF REGULATIONS ON
ENERGY MATTERS IN GHANA

03

03
 POWER GENERATION
IN GHANA

CONVENTIONAL OR TRADITIONAL
POWER SOURCES
Regulations overseeing the performance for the supply, This Act established the
conventional power genera- distribution, and sale of elec- Public Utilities Regulatory
tion sector, encompassing tricity, and issue technical and Commission (PURC) with the
hydro and thermal sources in operational rules of practice authority to regulate utility
Ghana, are established for electricity and natural gas services, provide fair competi-
through various crucial legal public utilities licensed under tion among public utility
frameworks. the Act. services, and provide guide-
lines on rates chargeable for
Some of the important legal The Renewable Energy Act, the provision of utility services.
frameworks include: 2011 (Act 832)
Environmental Assessments
The Energy Commission Act, While primarily focused on Regulations, 1999 (L. I.1652)
1997 (Act 541) renewable energy, this Act
also has implications for con- These regulations require
This Act established the ventional power generation. It power generation projects,
Energy Commission as the governs the development and including conventional ones
authoritative or regulatory utilization of renewable like hydro and thermal, to
body for the country’s energy energy sources and establish- undergo environmental
sector. The Act grants the es the legal framework for impact assessments before
Commission the power to feed-in tariffs, licenses, and they can be approved and
regulate and supervise various permits related to renewable implemented.
facets of energy production. energy projects.
The Electricity Regulations,
Further, the Commission can Public Utilities Regulatory 2008 (L. I. 1937)
by the Legislative Instrument Commission Act, 1997 (Act
(LI), prescribe standards of 538) The regulations provide for

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 04

market operations of electrici- framework for open, fair, and ing conventional ones, must
ty transmission, the planning, non-discriminatory access to adhere to. The grid code also
expansion, safety criteria, the electricity transmission defines important rules for
reliability, and cost-effective- network for all industry play- the generators, such as the
ness of the national intercon- ers. Responsibilities of Wholesale
nected transmission system, Suppliers and Obligations of
and the regulation of a whole- The National Electricity Grid Wholesale Suppliers.
sale electricity market among Code, 2009
others. These legal frameworks, along
The codes are technical codes with associated regulations
The Electricity Transmission that govern the operation and and guidelines, provide the
Rules, 2008 (L. I. 1934) use of the electricity transmis- basis for the regulation of con-
sion and distribution of bulk ventional power generation in
The regulation defines the electric power and energy Ghana, ensuring compliance
National Interconnected over the National Intercon- with industry standards, envi-
Transmission System, sets the nected Transmission System ronmental protection, and the
technical and operational (NITS). It sets out the technical promotion of sustainable
standards for the transmission standards and requirements energy practices.
service, and provides the legal that power generators, includ-

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 05

RENEWABLE ENERGY

For the regulation of renew- and utilization. legal framework for the elec-
able energy sources like solar tricity sector in Ghana, includ-
and wind, Ghana relies on a Environmental Impact ing provisions for connecting
distinct set of legal frame- Assessment Regulations, renewable energy projects to
works some of which include: 1999 (L.I 1652) the grid.

The Renewable Energy Act, This regulation also extends to Net-Metering Code 2023
2011 (Act 832) renewable energy projects,
necessitating that they under- The Energy Commission of
This Act provides for the devel- go assessments of their envi- Ghana has issued guidelines
opment, management, utili- ronmental impact priorto and technical connection
zation, sustainability, and ade- approval and implementation conditions for the intercon-
quate supply of renewable or development. nection of renewable-ener-
energy for the generation of gy-generating facilities to the
heat and power and other Electricity Regulations, 2008 low-voltage distribution
related matters. It also (L.I 1937) network under the Net-Meter-
promotes education on ing Scheme.
renewable energy production This regulation provides the

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 06

POWER GENERATION AND DISTRIBUTION
BODIES
products and other forms of
energy, formulation of nation-
al policies for the develop-
ment and utilization of indige-
nous energy resources, in
particular, renewable energy:
solar, wind, and biomass, and
licensing of public utilities for
the transmission, wholesale
supply, distribution and sale of
electricity and natural gas.

Volta River Authority (VRA) The Energy Commission

The Energy Commission was

VRA was established under established under the Energy
the Volta River Development Commission Act 1997 (Act 541)
Act, 1961 (Act 46). Its mandate toregulate and manage the
is to generate electricity development and utilization
through sustainable sources of energy resources in Ghana
such as hydro, natural gas, as well as to provide the legal,
and renewables. regulatory, and supervisory
framework for all providers of
The VRA’s mission is to power energy in the country, specifi-
economies and raise the living cally by granting licenses for
standards of the people of the transmission, wholesale,
Ghana and West Africa and to supply, distribution and sale of
supply electricity and related electricity and natural gas and Ghana Grid Company Ltd
services in a reliable, safe, and related matters. (GRIDCo)
environmentally friendly
manner to add economic, Its other functions include the GRIDCo was established as
financial, and social values to promotion of competition in part of the Energy Commis-
our customers and meet the supply, marketing, and sion Act, 1997 (Act 541) and the
stakeholders’ expectations. sale of renewable energy Volta River Development

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 07

(Amendment) Act, 2005 (Act
692). These laws set up a
special system, the National
Interconnected Transmission
System (NITS), run inde-
pendently, separating this
system from other activities of
the Volta River Authority (VRA)
in the Power Sector Reforms.

GRIDCo's main goal is to make

Ghana's wholesale power
market more competitive by
ensuring that all stakeholders
in the power market—like
power generators and big The Electricity Company of Northern Electricity Distribu-
power users—can easily Ghana (ECG) tion Company (NEDCo)
access the NITS and make
delivering power more The ECG was formerly known NEDCo, formerly known as the
efficient. as the Electricity Department- Northern Electricity Depart-
before being converted to the ment (NED) of the Volta River
Among its functions include Electricity Corporation of Authority (VRA) was estab-
the management of the Ghana by NLC Decree 125 in lished in 1987 to distribute
economic side of distributing 1967. The primary objective of electricity in the Brong-Ahafo,
electricity from big suppliers ECG is to supply and distribute Northern, Upper East, and
(like generating companies) electrical energy to homes Upper West Regions of Ghana
to big users (like the Electricity and offices within its opera- as part of VRA’s 161kV trans-
Company of Ghana (ECG), tional areas. Additionally, it mission grid extension to the
Northern Electricity Distribu- supervises the rural electrifi- northern parts of Ghana.
tion Company (NEDCo), and cation projects on behalf of
mines. the Government of Ghana. NEDCo aims to supply safe
and reliable electricity to
Also, GRIDCo handles various Its main functions include the homes and businesses in
aspects of power generation provision of quality, reliable, northern Ghana and neigh-
and supplychain such as the and safe electricity services to boring countries in a commer-
acquisition and management support the economic growth cially viable manner.
of electrical energy distribu- and development of Ghana,
tion capabilities, tracking and transmission, supply, and
billing for power uses by big distribution of electricity,
users, improving the trans- purchase of electrical energy
mission system, and promot- in bulk from Volta River
ing investments in the energy Authority (VRA) and other
sector, particularly the whole- Independent Power Produc-
sale power market. ers (IPP’s) or distribution, con-
struction, reconstruction,
installation, assemble, repair,
maintenance, operation or
removal of sub-transmission
stations, electrical appliances,
fittings and installations, and
the execution and supervision
of national electrification
programs on behalf of the
Government.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 08

PETROLEUM SECTOR BODIES
GNPC is a party to all The Petroleum Commission
upstream petroleum licenses
operated in Ghana. Its main The Petroleum Commission
goal is to help the govern- was established through the
ment achieve two things Petroleum Commission Act,
namely ensure there are 2011 (Act 821). Its establish-
enough dependable petro- ment was prompted by signif-
leum products available and icant discoveries of hydrocar-
decrease the country's bons in commercially viable
reliance on imported crude oil amounts. The commission's
by developing Ghana's petro- primary role is to oversee and
leum resources. control the use of petroleum
resources while also harmo-
Additionally, GNPC serves as nizing policies within the
The Ghana National Petro-
the central coordinator for the upstream petroleum sector.
leum Corporation (GNPC)
gas sector in Ghana, striving to
provide effective fuel options Its functions include monitor-
GNPC was established under
that can fulfill the country's ing and compliance with
GNPC Law 1983, (PNDC Law
growing energy demands. national policies, laws, regula-
64), with the mandate to
undertake exploration, devel- tions, and agreements related
opment, production, and to petroleum activities,
disposal of petroleum. The promotion of local content
Petroleum [Exploration and and local participation in
Production] Law, 1984, (PNDC petroleum activities, receiving
Law 84), was subsequently applications, and issuing
enacted to provide the regula- permits for specific petroleum
tory framework for the activities as required under
exploitation of the country’s petroleum laws and regula-
hydrocarbon resources. PNDC tions.
Law 84 establishes the con-
tractual relationship among
the state, GNPC, and prospec-
tive investors in upstream
petroleum operations.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 09

 ture for collecting, processing,
moving, and promoting natu-
ral gas resources in Ghana and
beyond its borders. The com-
pany handles the exploration
and extraction of various gas
types such as lean gas, con-
densate, LPG, and isopen-
tanes. Moreover, GNGC active-
ly contributes to advancing
the country's industrial sector.

The Tema Oil Refinery (TOR)

The National Petroleum
Authority (NPA)
TOR is currently the only refin-
ery in Ghana. It was formerly
owned by the ENI Group (Ente
The NPA was established by
Nazionale Idrocarburi) but is
the National Petroleum
now owned by the Govern-
Authority Act, 2005 (Act 691) to
ment of Ghana. It processes
regulate the petroleum down-
crude oil and markets petro-
stream industry in Ghana. The
leum products.
downstream industry consists
of various activities including
the importation, sale, market-
ing, refining, and distribution
of refined petroleum prod-
ucts.

The NPA’s functions include The Bulk Oil Storage & Trans-
the provision of licenses for portation Company Limited
business or commercial activi- (BOST)
ties in the downstream indus-
try, inspection, and monitor- BOST exists as an incorporat-
ing operations in the industry ed private company limited by
and monitoring the marked shares under the Companies
petroleum products at the Act.
retail outlets.
Its mandate includes owning,
managing, and developing a
national network of oil pipe-
lines and storage depots,
developing the Natural Gas
Infrastructure throughout the
country, developing a network
of storage tanks, pipelines,
and other bulk transportation
infrastructure throughout the
country, and renting or leas-
ing out part of the storage
facilities to enable it to gener-
ate income.

The Ghana National Gas

Company (GNGC)

GNGC is a company specializ-

ing in mid-stream gas opera-
tions. It possesses and man-
ages the necessary infrastruc-

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 10

CONSUMER PROTECTION

Under the umbrella of con- The PURC was established Parliament, ensuring trans-
sumer protection, the Public with the sole responsibility for parency and accountability in
Utilities Regulatory Commis- ensuring the efficient provi- its regulatory activities while
sion (PURC) plays a significant sion of utility services and the providing PURC the mandate
role in Ghana. They are a protection of consumers’ to promote competition and
multi-sector regulator that interests. The Act empowers regulate markets in the utility
controls the supply of utility PURC to regulate the pricing sector to prevent anti-com-
services, such as water and of utility services, including petitive practices.
electricity. tariffs for electricity, to ensure
that they are fair and reason-
Public Utilities Regulatory able. PURC is required to
Commission Act, 1997 (Act submit annual reports to
538)

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 11

ENVIRONMENTAL, SOCIAL AND
GOVERNANCE (ESG) UPDATES

04

12
INTEGRATING INTERNATIONAL
ENVIRONMENTAL REPORTING
FRAMEWORKS WITH THE GHANAIAN
CONTEXT
Environmental Reporting is showcasing a company's with environmental regula-
the presentation of a compa- efforts, achievements, and tions or inadequate sustain-
ny’s information to its stake- areas for improvement in ability practices. Proactively
holders containing its plans, sustainability and responsible addressing these risks mini-
actions, and accountability corporate conduct. mizes potential financial and
towards the environment. It is reputational damage. Addi-
a vital reporting system that tionally, it assists in recogniz-
tracks a company’s progress ing potential environmental
toward its environmental IMPORTANCE OF ENVIRON- and societal shifts, empower-
stewardship, commitment, MENTAL REPORTING FOR ing organizations to anticipate
and actions concerning envi- SUSTAINABILITY obstacles and make informed
ronmental preservation and business decisions.
sustainability. 1. Accountability and
Transparency: Environmental 3. Stakeholder Engage-
Environmental reporting over reporting serves as a commu- ment: Environmental report-
the years has shifted to high- nication between the compa- ing is instrumental in stake-
lighting efforts adopted by ny and its stakeholders. holder engagement, involving
companies to advance their Through this, companies investors, customers, employ-
sustainability agenda along disclose their environmental ees, and communities. By
environmental, social, and goals, actions, strategies, and disclosing crucial details
governance (ESG) objectives initiatives promoting account- about a company's sustain-
extending responsibilities to ability and transparency. ability commitment, the
social and governance consid- report helps cultivate trust
erations. 2. Risk Management: and nurtures positive relation-
Identifying environmental ships among stakeholders.
Sustainability reports serve as risks and potential liabilities Further,the reports equip
a crucial tool in transparently linked to non-compliance stakeholders with vital infor-

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 13

 4. Sustainability
Accounting Standards Board
(SASB): The SASB provides a
system for organizations to
disclose sustainability-related
risks and opportunities that
could reasonably be expected
to affect an entity’s cash flow,
access to finance, or cost of
capital over a period of time.

COMMON ELEMENTS IN
ENVIRONMENTAL REPORT-
ING FRAMEWORKS

1. Data Collection and

Analysis: Data Collection is
central to all reporting frame-
works. This enables the evalu-
ation of an entity’s environ-
mation to evaluate an organi- system for companies. It is mental footprint, including
zation's environmental perfor- known to have the most com- assessing its carbon emissions
mance and make well-in- prehensive dataset on corpo- and waste generation.
formed decisions, thereby rations and cities. The report-
fostering transparency and ing standard focuses mainly 2. Stakeholder Engage-
trust among all involved on climates, water, and forests. ment: All reporting frame-
parties. The CDP is concerned only works encourage stakeholder
with environmental reporting. engagement as a means of
4. Reputation and Good- providing valuable informa-
will: By being transparent 2. Global Reporting tion about an organization's
about their actions, environ- Initiative (GRI): The GRI is environmental performance
mental reporting enhances widely known to consist of and helping make informed
the image of the company, environmental, social, and decisions. The ultimate goal is
attracting environmentally governance goals. This report- to ensure stakeholder
conscious consumers and ing system focuses more on
investors. stakeholder engagement,
transparency, and accounting.
The environmental reporting It does not limit itself to just Environmental
frameworks are structured for
organizations to effectively
private companies but also to
public companies, universities,
Reporting is the
disclose their environmental hospitals, and cities. presentation of
performance. It consists of
various global standards and 3. International Finan- a company’s
common elements
ensure comprehensive and
that cial Reporting System S2
(IFRS S2): The IFRS S2
information to
transparent reporting practic- assumed control of the disclo- its stakeholders
es. sure system of the Task Force
on Climate-Related Financial containing its
Disclosures (TCFD).
reporting system requires an
The
plans, actions,
EXAMPLES OF GLOBAL entity to disclose information
about climate-related risks
and account-
ENVIRONMENTAL REPORT-
ING STANDARDS and opportunities that could ability towards
reasonably be expected to
1. CDP: Formerly known affect the entity’s cash flows, the environ-
as the Carbon Disclosure Proj-
ect, it is a not-for-profit charity
its access to finance, or the
cost of capital over the short,
ment.
that runs the global disclosure medium, or long term.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 14

inputsare collated froma
broader perspective and that
environmental impacts and
initiatives are assessed com-
prehensively. Some stake-
holders include customers,
employees, investors, and
communities.

3. Reporting Formats
and Guidelines: All environ-
mental reporting frameworks
provide formats and guide-
lines making them relatively
simple and accessible to
different entities. The practi-
cality of the reporting frame-
works ensures consistency
among the various industries.
The reports include disclosure
requirements, performance
metrics, environmental goals,
and strategies.

tion, climate change, and of some of these regulatory

UNDERSTANDING GHANA’S wildfires in the Savannah demands has proven to be a
ENVIRONMENTAL LAND- region. Although agriculture is challenge over the years. Laws
SCAPE one of Ghana’s main sectors – general or specific must be
for economic growth, the made to work and deal with
Ghana is endowed with rich present environmental chal- institutions or individuals
natural resources that have lenges pose serious risks to whose activities pose dangers
historically defined its envi- the country’s food security to the protection of the envi-
ronmental landscape. needs. Ensuring accountabili- ronment.
Renowned for its gold ty through these environmen-
reserves, cocoa production, tal reporting frameworks
and diverse ecosystems, would help track efforts to
Ghana has long been recog- deal with the current chal- HOW TO ADOPT THE INTER-
nized for its environmental lenges and protect the envi- NATIONAL ENVIRONMENTAL
significance and natural ronment in the interest of all. REPORTING FRAMEWORKS
abundance. However, Ghana INTO THE GHANAIAN
faces numerous environmen- SYSTEM
tal challenges which have led
to criticisms of its regulatory REGULATORY FRAMEWORK
framework aimed at safe- 1. Identifying relevant
guarding the environment, Some specific regulatory environmental indicators:
often being perceived as lax. frameworks exist to ensure For Ghanaian entities to utilize
the protection of the environ- the environmental reporting
ment. The Environmental frameworks, it is crucial to
Protection Act, 1994 (Act 490) undergo a materiality test.
ENVIRONMENTAL CHAL- consolidates the law relating This enables the entity to
LENGES to environmental protec- focus on improving its effects
tion,environmental impact on specific aspects of the
One of Ghana’s main environ- assessments, waste manage- environment. In Ghana, there
mental challenges is the ment, and protection of natu- are key metrics that reflect the
recent illegal mining menace ral resources, conservation country’s environmental chal-
which has become a huge efforts, and initiatives to lenges, and these include
contributor to deforestation, combat climate change biodiversity preservation,
water pollution, soil pollution, among others. Ensuring strict waste, water quality, defor-
and air pollution. Other chal- compliance and enforcement estation, and air pollution. The
lenges include land degrada-

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 15

identification of these indica- that data collection method- CONCLUSION
tors may guide entities in con- ologies align with Ghana's
structing comprehensive unique environmental con- Environmental reporting is an
reports that accurately reflect cerns and regulations. This will important aspect of any enti-
their environmental impacts. further enhance the accuracy ty’s disclosure to its stakehold-
and relevance of the reports ers. It includes performance
2. Collaboration with generated. indicators such as energy,
Environmental Protection emissions, water, waste, land
Agency (EPA): The EPA has 3. Stakeholder engage- and building area, and build-
various projects under its ment: Understanding the ing materials. By engaging in
wing including the Ghana culture of Ghanaians can aid environmental reporting,
Sustainable Land and Water entities in engaging with organizations demonstrate
Management Project, Ghana stakeholders. By analyzing the their commitment to sustain-
Landscape Restoration and various communities and able practices, showcasing
Small-Scale Mining Project, identifying the relevant stake- their environmental responsi-
and Natural Resource and holders, entities can initiate bility and dedication to mini-
Environmental Governance. meaningful dialogues to align mizing their environmental
These projects and initiatives with stakeholders' perspec- footprint. Tailoring interna-
provide guidance on mea- tives and inform communica- tional reporting frameworks
sures such as improving water tion strategies to be adopted.- to the Ghanaian context can
management and promoting Such undertakings will facili- help entities become environ-
climate-smart agriculture. tate more impactful engage- mentally conscious of the
Engaging with the EPA will ment and promote communi- effects of their footprints.
help foster a deeper under- cation that resonates effec-
standing of the local environ- tively with diverse stakehold-
mental landscape and ensure ers.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 16

GOVERNANCE RISKS AND MITIGATION
STRATEGIES – THE CONCEPT OF
GOVERNANCE, RISK AND
COMPLIANCE (GRC)

In our rapidly changing busi- processes, handle risks proac- management's strategies and
ness world, one constant tively, and ensure they abide directives.
remains - the need for solid by relevant laws, regulations,
governance, smart risk han- and industry norms. Risk management, on the
dling, and a strong commit- other hand, deals with the
ment to following rules and It was coined by the Open identification, assessment,
regulations, collectively Compliance and Ethics Group and mitigation of potential
known as Governance, Risk (OCEG) and officially intro- threats to the organization.
and Compliance (GRC). duced in 2007 when Scott These risks can originate from
Mitchell, OCEG’s founder, was various sources, including
With technology racing published in the International financial uncertainties, legal
ahead and rules constantly Journal of Disclosure and Gov- liabilities, strategic missteps,
shifting, GRC has become a ernance with the first peer-re- accidents, or even natural
vital cornerstone for success- viewed academic paper on disasters.
ful businesses, ensuring they same.
can weather storms, stay Compliance pertains to the
strong, and keep growing. Governance revolves around organization's commitment
how top-level management to meeting regulatory
But what is the big deal with oversees all aspects of the requirements in its daily busi-
GRC, and why has it become organization. It's about ensur- ness operations, data protec-
imperative for companies ing that essential manage- tion, and employee behavior.
today? ment information is not only It also encompasses the
accurate but also delivered adherence to internal policies
GRC is a strategic framework promptly, enabling informed and procedures, all of which
adopted by organizations to decision-making. Governance are essential for safeguarding
harmonize their business is also responsible for the the organization and its stake-
goals with day-to-day successful implementation of holders.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 17

With technology appropriately. It provides
accountability standards for
3. Organizational super-
vision: Governance plays a
racing ahead all behaviors and outcomes, crucial role in ensuring that all
and rules con- managing employee conduct
by encouraging a corporate
activities align with the orga-
nization's strategy and adhere
stantly shifting, citizenship approach and to legal and ethical standards.
enforcing ethical business This oversight includes perfor-
GRC has become practices. mance monitoring, imple-
a vital corner- Good governance involves
menting controls, managing
risks, and ensuring compli-
stone for suc- clearly defining jobs and ance, all of which collectively
cessful business- responsibilities and evaluat-
ing employees according to
contribute to achieving orga-
nizational excellence.
es, ensuring their results.

they can weath- Governance holds significant

er storms, stay importance in several key
areas:
THE RISK MANAGEMENT
FRAMEWORK
strong, and keep
growing. 1.
providing
Decision-making: By
well-defined
Risk management involves
recognizing, assessing, and
policies and procedures, handling an array of risks,
governance offers a roadmap such as legal, financial, and
for making crucial decisions security-related ones. To
THE GOVERNANCE FRAME- that are in line with the orga- tackle these risks, organiza-
WORK nization's mission, vision, and tions are required to allocate
strategic objectives. resources to keep a close eye
2. Strategic planning: It on security events and take
Governance refers to a set of establishes the mechanisms control of their impacts.
policies, regulations, func- for carrying out strategic
tions, processes, procedures, initiatives, guaranteeing that A comprehensive risk man-
and responsibilities that these actions are in the orga- agement system encompass-
define how an organization is nization's best interests and es people, technology, and
structured, managed, and contribute to the achieve- processes to set and uphold
supervised. It serves as the ment of its goals. risk reduction goals. Success-
blueprint for how a company
functions, making it crucial to
invest in robust governance as
a key stride toward attaining
organizational excellence.

In the GRC framework, gover-

nance serves as the guiding
force that harmonizes and
combines the elements of risk
management and compli-
ance. Its key roles include
outlining the corporate struc-
ture and management hierar-
chies, defining strategic goals,
setting operational principles
and ethical standards, and
overseeing the performance
of both management and the
organization.

A successful governance strat-

egy balances various stake-
holder interests, maintains
control of resources, and
empowers employees to work

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 18

 bodies and internal guide-
lines.

In the GRC framework, com-

pliance, governance, and risk
management come together
to form a holistic approach to
running a business. Gover-
nance sets the groundwork by
defining the policies and
procedures needed to meet
regulatory standards, essen-
tially providing the rules. Risk
management plays a role by
pinpointing potential compli-
ance issues and developing
plans to address them, ensur-
ing the organization not only
follows the law but also safe-
guards its reputation.

REGULATIONS, STANDARDS,
ful risk management also helps organizations prioritize AND POLICIES
entails keeping stakeholders risks and allocate their
in the loop and aligning with resources effectively. a. Regulatory compliance
legal, contractual, and busi- 3. Risk Mitigation: At this involves adhering to laws and
ness requirements. stage, strategies are devel- regulations applicable to the
oped to decrease the likeli- organization's operations.
A robust risk management hood and impact of the identi- These can range from data
program should begin by fied risks. This might involve protection and privacy laws to
pinpointing security threats adopting new procedures, labor standards and environ-
like unsafe practices and soft- investing in advanced tech- mental regulations.
ware vulnerabilities. Once the nologies, or making adjust-
risks are identified, the ments to business strategies.
program can evaluate them 4. Risk Monitoring: This
and put in place strategies to
reduce their impact and
step involves a continuous
review and update of the Good gover-
ensure the uninterrupted flow
of business operations.
organization's risk profile,
including how well the miti- nance in-
The risk management process
gation strategies are working.
Necessary changes are made volves clearly
can be broken down into four
key steps:
as conditions evolve.
defining jobs
1. Risk Identification:
and responsi-
This step revolves around
spotting potential events or
THE COMPLIANCE FRAME-
WORK
bilities and
conditions that might have a evaluating
negative impact on the orga-
nization's objectives. These The final piece of the GRC employees ac-
risks can span financial, opera- puzzle is compliance, which
tional, strategic, and more. refers to the organization's cording to
2. Risk Assessment: adherence to relevant laws,
Once these risks are identified, industry standards, and inter- their results.
they're evaluated based on nal policies. Compliance is a
how likely they are to happen crucial aspect of GRC, ensur-
and what consequences they ing a business operates within
might bring. This evaluation the boundaries set by external

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 19

b. Industry standards are CHALLENGES INVOLVED IN 3. Organizational
guidelines and norms estab- IMPLEMENTING A GRC Culture: Maintaining a GRC
lished by industry bodies to FRAMEWORK framework requires continu-
maintain quality and safety ous updates and effort from
benchmarks. Compliance all stakeholders. Ensuring risk
with these standards is often Organizations often face chal- mitigation and compliance is
voluntary but can significantly lenges when implementing a an ongoing task. It's crucial to
enhance an organization's GRC strategy: have an organizational culture
credibility and competitive- that is committed to and
ness. 1. Data Silos and Lack of supportive of the GRC strate-
Integration: Ineffective GRC gy.
c. Internal policies are proce- implementation can worsen
dures set by the organization the problem of data silos. 4. Impact of Cloud Com-
itself. These may include ethi- Without a comprehensive puting: As organizations
cal guidelines, HR policies, or framework, different depart- increasingly embrace cloud
data management policies. ments may work towards their computing, it brings signifi-
Compliance with internal own goals without consider- cant changes to their struc-
policies is crucial to maintain- ing the big picture. A success- tures, networks, potential
ing organizational integrity ful GRC strategy should offer a vulnerabilities, and access
and ensuring smooth opera- unified view of data insights control systems. GRC strate-
tions. to support well-informed gies must adapt to this evolv-
decisions. ing landscape.
The mandatory nature of the
regulatory demands implies 2. Manual Processes
that non-compliance cannot and Inefficiencies: Some
be countenanced should one GRC processes still rely on BEST PRACTICES FOR GRC
desire to operate a legal com- manual work. This lack of IMPLEMENTATION
pliance business. To forestall automation can lead to
non-compliance, the law has wasted time, human errors,
established some far-reaching and difficulties in finding Integrating a GRC approach
sanction regimes to deal with necessary documents. requires careful planning,
non-compliance, including Manual processes also limit an dedicated resources, and
business closures, payment of organization's ability to moni- ongoing commitment. Here
fines, criminal prosecution, tor and collect data effectively. are some best practices for
etc. effective governance, risk, and
compliance implementation:

1. Establish GRC
Requirements: The key to
successful GRC implementa-
tion is understanding and
prioritizing the organization’s
exposure and creating a road-
map for continual improve-
ment. Most companies may
have improvement plans in
place already, so the next step
is to assess the overall enter-
prise and identify existing risk
management and compli-
ance activities. An organiza-
tion can consult operating
executives and management
to gain a clear understanding
of current GRC performance.

Management should com-

pare existing policies and
practices with the organiza-
tion’s GRC objectives, consid-
ering the business areas most

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 20

sensitive to compliance issues 3. Prepare Software for evaluate performance based
and security risks. This allows Integration: After choosing a on metrics they specify. They
the organization to establish GRC solution, the organiza- should regularly assess risks,
long-term goals and incorpo- tion needs to integrate it with reevaluate existing controls,
rate any industry or regulatory its current policies and and update their policies to
requirements that apply. processes. GRC software keep up with changing regu-
providers typically offer con- lations and industry stan-
2. Choose the Right GRC sultations and demos to test dards.
Technology: Finding the right the product. An account man-
GRC software can be ager can provide guidance in
time-consuming and expen- using the software and imple-
sive, but it is key to managing menting it in the organization. CONCLUSION
risk and implementing strong
GRC. First, the organization Next, management should
should identify which technol- assign internal roles and GRC is an essential compo-
ogies can improve its existing responsibilities for employees nent of the regulatory report-
business model and how. in the organization to imple- ing solution for any worldwide
Organizations should identify ment GRC, defining the organization. It lets enterpris-
the tasks they can automate specific steps that each es efficiently manage risk,
and any security or compli- employee must take to imple- maintain compliance with
ance gaps they need to ment and use the software. internal and external require-
address. ments, and make well-in-
4. Keep Track of GRC formed decisions that match
Ideally, there should be a Progress: No GRC product or the business goals and objec-
single solution for all the com- implementation roadmap is tives of the firm.
pany’s GRC requirements to flawless, especially at the start.
avoid the complexity of man- Organizations must continu- By comprehending GRC
aging different technologies ously monitor the progress of procedures, firms may miti-
with different data formats. their GRC implementation to gate the risks associated with
security threats, evolving
legislation, industry stan-
dards, and other compliance
needs.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 21

FINANCE UPDATES

05

22
GHANA ALTERNATIVE MARKET (GAX)

Small and Medium Enterprises THE ROLE SMEs PLAY IN THE

(SMEs) contribute to the GHANAIAN ECONOMY Consequently, SMEs in Ghana
growth of the economy, heavily rely on alternative
through job creation and inno- SMEs are significant contribu- means to finance their busi-
vativeness. However, SMEs tors to the Ghanaian econo- nesses. This includes utilizing
often face challenges in my, accounting for a substan- personal savings, relying on
accessing finance, hindering tial portion of GDP and trade credit, seeking loans
their growth and develop- employment. These dynamic from friends and relatives, and
ment. To address this issue, the enterprises operate across exploring informal networks
Ghana Alternative Market diverse sectors such as manu- for financial assistance. While
(GAX) was established as an facturing, retail, agriculture, these avenues may provide
avenue for SMEs. The estab- construction, and marketing. temporary relief, they may not
lishment of the GAX aimed to However, despite their impor- always offer the stability and
provide SMEs and startups, tance, SMEs often encounter resources required for sustain-
who typically failed to meet obstacles when it comes to able growth.
the criteria of the primary accessing financial resources,
stock exchange, with an leaving them with limited
opportunity to be listed and options.
access equity financing. THE NEED FOR ALTERNA-
Traditional banks, for instance, TIVE FINANCING OPTIONS
Despite its potential, the GAX tend to offer short-term loans
has not been successful in that come with high interest In response to the financing
attracting SMEs to list, with rates and stringent collateral challenges faced by small and
only six companies listed since requirements. These condi- medium-sized enterprises
its inception. This article aims tions make it challenging for (SMEs), governments and
to explore the prevailing SMEs to fulfill their funding financial institutions across
factors that hinder SMEs needs through conventional the globe have established
listing on the GAX and propose banking channels. While alternative avenues for raising
potential solutions to encour- microfinance institutions capital, including the creation
age more SMEs to participate. provide some support, their of SME exchanges. These
financing options are often specialized exchanges cater
insufficient to meet the capi- specifically to the needs of
tal requirements of SMEs. smaller companies, offering

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 23

them a platform to access
funding and support their
through SME exchanges helps
to level the playing field for
Equity financ-
growth aspirations. Through small businesses, enabling ing, offered
these exchanges, SMEs can them to compete with larger
obtain the necessary capital companies in the market. through SME
to expand their operations,
drive innovation, and invest in While SME exchanges have
exchanges,
technology and research. demonstrated success in presents vari-
developed economies, their
Equity financing, offered impact in developing econo- ous benefits
through SME exchanges,
presents various benefits like;
mies, such as Ghana, has been
relatively limited. However, like; a valuable
a valuable opportunity for
SMEs to overcome the limita-
the need for such platforms
remains, as they hold the
opportunity for
tions associated with bank potential to bridge the financ- SMEs to over-
financing. Unlike bank loans, ing gap for SMEs and contrib-
equity financing does not ute to their overall economic come the lim-
require collateral and offers
longer-term funding solu-
growth. Continued efforts to
foster the development and
itations associ-
tions. SMEs that obtain equity effectiveness of SME exchang- ated with bank
financing are guaranteed es in developing economies
funding that is not tied to can unlock opportunities for financing.
immediate repayment obliga- SMEs to access equity capital
tions, providing more flexibili- and fuel their expansion and
ty in their financial manage- development. tal. The GAX aims to support
ment. Additionally, these plat- SMEs that do not meet the
forms serve as a springboard requirements of the main
for greater visibility and expo- stock exchange to access
sure for listed firms. This THE GHANA ALTERNATIVE financing and grow their busi-
increased visibility allows MARKET (GAX) nesses.The GAX sets a modest
investors to identify and seize minimum capital require-
opportunities to invest in The GAX was established in ment of GH¢250,000 for SMEs
emerging SMEs that show 2013 to cater specifically to seeking to list on the
significant growth potential In SMEs and provide them with a exchange, without mandating
a nutshell, equity financing platform to raise equity capi- a prerequisite for a well-estab-
lished history of profitability
even though they are required
to present financial state-
ments.As a result, SMEs with
lower capital thresholds and
varying profitability levels can
consider listing on the GAX,
providing them with access to
a broader investor base,
increased visibility, and the
potential for further growth
through equity financing.

Additionally, to ensure the

quality and success of listings
on the GAX, the exchange
mandates that SMEs have a
sponsoring broker who direct-
ly or indirectly underwrites a
minimum of 20% of the offer.
This requirement acts as a
safeguard against unsuccess-
ful or inadequate listings on
the GAX.By imposing this
underwriting obligation, the
GAX encourages SMEs to have

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 24

 commitment to the develop-
ment of the GAX, their efforts
to attract SMEs to list have
been passive. LDMs play a
crucial role in guiding and
facilitating SMEs through the
listing process, but their
involvement has been limited.

4. Alternative Funding
Sources: SMEs currently rely
on alternative funding sources
such as personal savings,
trade credit, and loans. These
sources with the exception of
banks, provide immediate
access to funds and do not
require SMEs to give up own-
ership or comply with the
listing requirements of the
GAX. As a result, SMEs may be
reluctant to switch from these
familiar funding sources to
a financial intermediary, typi- of 50 SMEs, 21 brokers, and the GAX.
cally a sponsoring broker, who three already listed SMEs on
assumes a certain level of the GAX, shed light on various 5. Limited Education
financial responsibility and influential factors impacting and Information: SMEs high-
risk. This ensures that there is the decision-making process lighted the need for more
a commitment from the of SMEs regarding GAX listing. information and education
broker to support the listing about the GAX from relevant
and provide confidence to Among these factors are: stakeholders. Increased
potential investors. awareness and understand-
1. Limited Awareness ing of the benefits and
The underwriting require- and Knowledge: More than requirements of listing on the
ment serves multiple purpos- half of the surveyed SMEs had GAX would make it a more
es. Firstly, it helps to maintain some awareness of the GAX's attractive option for SMEs.
the credibility and reputation existence, but their knowl-
of the GAX by minimizing the edge of its benefits and listing Aside the above survey con-
likelihood of poorly prepared requirements was limited. ducted, one significant chal-
or financially weak compa- This lack of awareness and lenge that arises is the readi-
nies entering the market. information hinders SMEs ness of SMEs to meet the
Secondly, it provides a level of from considering the GAX as a requirements for listing on the
assurance to investors that viable option for financing GAX. Many SMEs face difficul-
there is a professional inter- their businesses. ties in fulfilling the necessary
mediary involved in the listing criteria due to various factors,
process, enhancing confi- 2. Difficulty Accessing such as a lack of proper
dence in the offering. Stock Market Operators and record-keeping, inadequate
Information: SMEs reported board structures, absence of a
difficulties in accessing stock comprehensive marketing
market operators, such as plan, and insufficient organi-
brokers, and obtaining stock zational structure.Without
FACTORS HINDERING SME market information. This lack proper record-keeping prac-
LISTING ON THE GAX of access and information tices, SMEs may struggle to
further limits their under- demonstrate their financial
Numerous research studies standing of the listing process stability, growth potential, and
have been conducted to and the benefits of listing on compliance with regulatory
explore the determinants of the GAX. standards.
SMEs opting for listing on the
Ghana Alternative Market 3. Passive Efforts by Additionally, the absence of a
(GAX). One particular survey Licensed Dealing Members well-structured and compe-
conducted based on a sample (LDMs):While LDMs showed tent board of directors poses a

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 25

challenge. SMEs often lack GAX can create a compelling their attractiveness to inves-
experienced board members incentive for SMEs to consider tors, improves their chances of
who can provide strategic listing on the exchange.By successful listing, and contrib-
guidance, governance over- offering a more accommodat- utes to their long-term
sight, and decision-making ing listing framework, the GAX growth and sustainability in
expertise. This deficiency can positions itself as a supportive the capital market.
raise concerns among poten- platform for SMEs.
tial investors, as a strong and
capable board is crucial for Targeted capacity-building
sound corporate governance programs can be introduced CONCLUSION
and long-term sustainability. to educate and support SMEs
in maintaining proper The Ghana Alternative Market
Furthermore, the lack of a record-keeping practices and (GAX) has the potential to
comprehensive marketing financial management as well support SMEs in accessing
plan is also a common issue. as generally educating and equity financing and fueling
SMEs may not have a clear keeping them well informed their growth. However, the
strategy to promote their about the GAX. prevailing factors identified in
products or services, reach this study need to be
target markets, and differenti- Initiatives can be undertaken addressed to encourage more
ate themselves from competi- to assist SMEs in strengthen- SMEs to participate in the
tors. This can limit their ability ing their board structures. This GAX. It is quite evident that
to attract investors and gener- can involve providing guid- the finding shave important
ate market interest, reducing ance on board composition, implications for SMEs, policy-
the potential success of their recruiting qualified directors, makers, and stakeholders in
listing.Without well-defined and offering training the Ghanaian economy. SMEs
structures and processes, programs to enhance their need to be made aware of the
SMEs may struggle to demon- governance capabilities. alternative financing options
strate their ability to scale, available to them, including
effectively manage resources, Support can be provided to the GAX. Policymakers, such
and mitigate potential risks. help SMEs develop robust as the Ghana Stock Exchange,
marketing plans. This may Securities and Exchange
include access to marketing Commission, and SME-related
experts or mentorship organizations, should develop
POTENTIAL SOLUTIONS TO programs that assist SMEs in accommodating frameworks
THE LIMITATIONS formulating effective strate- and initiatives to support
gies to promote their prod- SMEs in accessing funding
By recognizing the obstacles ucts or services and attract through the GAX. By providing
that hinder SMEs from listing potential investors. Also, SMEs SMEs with the necessary
on the GAX, we can develop can be provided with resourc- support and education, the
effective solutions to address es to improve organizational GAX can become a viable
these challenges. Both SMEs structures and processes option for SMEs seeking
and the GSE can implement within SMEs. This can involve long-term financing and
practices and make adjust- offering training programs on growth opportunities.
ments to facilitate the listing human resource manage-
process. Here are potential ment, operational efficiency,
approaches to tackling these and risk mitigation strategies.
issues:
By implementing these solu-
By introducing more flexible tions, SMEs can enhance their
listing rules and easing com- readiness for listing on the
pliance requirements, the GAX. This, in turn, increases

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 26

GUIDELINES FOR GREEN BONDS IN
GHANA

In an era marked by growing have gained traction as a 1. Enhanced Reputation

environmental concerns, compelling financial instru- as an ESG-Compliant Com-
traditional approaches to ment. Green bonds not only pany: By issuing sustainable
finance are being reevaluated. provide attractive investment bonds, companies demon-
Integrating environmental, options but also bring strate their commitment to
social, and governance (ESG) substantial environmental environmental, social, and
factors into investment deci- and societal benefits. governance (ESG) principles,
sions, is a step being taken by thereby enhancing their
financial institutions to active- This write-up aims to discuss reputation as responsible and
ly contribute to mitigating Ghana’s effort in implement- sustainable entities. This can
climate change. This initiative ing green bond guidelines, attract socially conscious
is termed ‘green finance’. At understanding the obstacles investors, customers, and
the forefront of this green preventing issuers from partners, leading to improved
finance movement are green coming to market, and also brand image and stakeholder
bonds, which aim at raising the benefits of green bonds trust.
funds through the issuance of generally.
bonds to finance green initia- 2. Access to a New
tives. Source of Sustainable
Finance: Green bonds provide
Considering our sovereign BENEFITS OF ISSUING issuers with access to a dedi-
debt distress, a well-estab- GREEN BONDS cated pool of capital specifi-
lished and active green bond cally interested in funding
market in Ghana will serve the Issuing green bonds offers environmentally friendly and
country well. Globally, inves- benefits for both issuers and socially responsible projects.
tors have begun recognizing investors, fostering a win-win This opens up new avenues
the importance of integrating scenario for all parties for financing, diversifying
ESG considerations into their involved. funding sources, and reduc-
investment strategies. This ing reliance on conventional
shift in investor sentiment has debt instruments.
given rise to the remarkable
growth of green bonds, which BENEFITS FOR ISSUERS: 3. Attraction of Strong

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 27

Investor Demand: The grow-
ing demand for sustainable
Capital Towards Climate
Change Solutions and Social Ghana is still
investments translates into
increased interest from inves-
Impact Projects:
bonds offer investors the
Green
in its early
tors in green bonds. This
heightened investor demand
opportunity to actively direct
their capital towards climate stages of
can lead to oversubscription,
where the demand for bonds
change mitigation, renewable
energy projects, sustainable adopting
exceeds the available supply,
and potentially result in more
infrastructure, and other
initiatives with positive envi- green financ-
favorable pricing and condi-
tions for issuers.
ronmental and social impacts.
This enables investors to align ing and inte-
their investment choices with
their values and contribute to grating same
the transition to a more
sustainable economy. into the
BENEFITS FOR INVESTORS:
system.
1. Potential for
Enhanced Risk Management
and Financial Returns: GHANA’S GREEN BOND
Investing in green bonds can GUIDELINES
contribute to enhanced risk
management by considering As the deadline for achieving Economy, such as the Environ-
environmental and social the Sustainable Development mental Fiscal Reform Policy,
factors that may impact Goals (SDGs) draws near, the the National Climate Change
long-term financial perfor- Ghanaian government is Policy, the National Climate
mance. By integrating actively looking at ways to Change Adaptation Strategy,
sustainability considerations finance the SDGs, one of and the National Climate
into investment deci- which is the use of green Change Master Plan. However,
sion-making, investors can bonds. currently, the country has
potentially identify and avoid introduced guidelines for
companies with high ESG Ghana is still in its early stages green bonds and sustainable
risks, leading to more resilient of adopting green financing investments in line with its
portfolios and potentially and integrating same into the commitment towards sustain-
improved financial returns. system. Various initiatives able development. These
have been introduced in the guidelines aim to provide a
2. Opportunity to Direct past to support Ghana's Green framework for issuers and
investors to support projects
that have positive environ-
mental and social impacts
while generating financial
returns. Some eligible activi-
ties and projects in Ghana
include but are not limited to;
Renewable Energy (at least
1,270 MW of energy projects:
solar, PV, wind, hydropower),
Pollution Prevention & Control
(waste collection and dispos-
al), Green Buildings - Green
mortgages & Green loans for
developers, Terrestrial &
Aquatic Biodiversity Conserva-
tion, Sustainable Water &
Wastewater Management
(water treatment plants &
water and sewage infrastruc-
ture) and projects related to
gender equality (women
empowerment).

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 28

The Ghana Stock Exchange that the proceeds raised from these instruments, enabling
(GSE) and the Securities and these bonds are utilized for investors to actively partici-
Exchange Commission (SEC) environmentally friendly proj- pate in sustainable financing
have jointly introduced a set of ects and initiatives. The guide- and contribute to the coun-
guidelines known as the lines also emphasize the try's environmental objectives.
Ghana Fixed Income Market importance of adherence to
(GFIM) Rules. These rules internationally recognized It is important to note that the
apply generally to bonds, standards and principles, such specifics of Green and
however, they also incorporate as the Green Bond Principles Sustainable Bonds are subject
a clear framework for the (GBP) established by the to change or further refine-
listing and trading of green International Capital Market ment. Therefore, interested
and sustainable bonds on the Association (ICMA). By align- parties are encouraged to
GSE. The introduction of these ing with these global best refer to the latest guidelines
rules signifies a significant practices, Ghana aims to and consult with the GSE and
step towards promoting and enhance investor confidence SEC for the most up-to-date
supporting environmentally and attract a diverse range of and accurate information.
conscious and sustainable investors who prioritize
financing in Ghana's capital sustainable investments.
market. By establishing a
well-defined framework, the The introduction of the GFIM
GSE and SEC aim to encour- Rules underscores the com- PROCESS OF ISSUING A
age both domestic and inter- mitment of the GSE and SEC GREEN BOND IN GHANA
national issuers to participate to promoting sustainable
in the green and sustainable finance and supporting the The GSE operates the Ghana
bond market in Ghana. The transition towards a greener Fixed Income Market (GFIM),
good news is that green economy in Ghana. These which focuses on the trading
bonds are open to all interest- rules provide issuers with a of fixed-income securities
ed investors. clear roadmap for tapping such as bonds. Established in
into the growing demand for 2015, the GFIM provides a plat-
Under the Rules, issuers seek- green and sustainable invest- form for entities seeking capi-
ing to list their green and ments while ensuring trans- tal and investors seeking
sustainable bonds on the GSE parency and accountability in investment opportunities in
will need to comply with the use of funds.By facilitating the debt market.
specific requirements related the listing and trading of
to transparency, reporting, green and sustainable bonds, To be admitted to the Ghana
and the use of proceeds. the GSE aims to create a Fixed Income Market (GFIM),
These requirements ensure vibrant and liquid market for issuers other than the Govern-
ment of Ghana or the Bank of
Ghana (BoG) must submit an
application along with
supporting documents. These
documents should include a
prospectus or placement doc-
ument, if applicable.The
specific documents required
for the application will be
determined in consultation
with the GFIM. If an issuer is
seeking admission through a
public offer, they must also
submit a copy of their offer
prospectus to the Securities
and Exchange Commission
(SEC) for approval unless
exempted by law. However, it
is important to note that
approval by the SEC does not
guarantee admission to the
GFIM. The GFIM will assess the
application for admission and
supporting documents inde-

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 29

pendently. determining mark-to-market Addressing these obstacles
valuations. primarily requires increasing
If an issuer is seeking to have awareness and understand-
security admitted on the GFIM One notable challenge in the ing of green financing. Public
by introduction, they must file Ghanaian market is the limit- awareness campaigns, work-
a prospectus or a statement in ed number of market players shops, and educational initia-
lieu of a prospectus for who have successfully identi- tives targeting issuers, inves-
approval by the SEC. After SEC fied a comprehensive list of tors, and the general public
approval, the issuer must pub- eligible projects for green can help.
lish the prospectus unless bonds. This is primarily due to
exempted by the SEC from the distinctive nature of green
filing one. bonds as a financial instru-
ment and the relatively
modest technical capabilities CONCLUSION
of the market at present. How-
ever, it is crucial to acknowl- With the creation of rules for
SOME OBSTACLES IN THE edge that there exists signifi- green bonds, Ghana has taken
ISSUANCE OF GREEN BONDS cant untapped potential a significant step in promot-
IN GHANA among various issuers, wait- ing sustainable finance and
ing to be explored and addressing social and environ-
The issuance of green bonds harnessed for sustainable mental challenges. Investors
in Ghana encounters several investments. and issuers can participate in
obstacles stemming from the the growing sustainable bond
characteristics of the debt Furthermore, while many market via the Ghana Fixed
capital market and the limited stakeholders in Ghana are Income Market and the
presence of corporate issuers. familiar with the concept of Ghana Stock Exchange. By
This situation results in a green bonds, there remains a implementing these sugges-
relatively low demand for notable proportion who lack tions, investors will assist in
non-sovereign issuances, the necessary understanding achieving positive social and
including green bonds, or expertise to conduct a com- environmental outcomes,
among the investor commu- prehensive assessment of the assist issuers in demonstrat-
nity. However, it is worth suitability and applicability of ing their commitment to
noting that there are emerg- green bonds in their own sustainability, and create new
ing indications of a changing business operations or for avenues for funding. Ghana
landscape in this regard. Addi- their clients. This knowledge could accelerate its transition
tionally, the secondary bond gap hinders the broader to a more sustainable and
market in Ghana has its limita- adoption and implementa- ecologically aware future by
tions, which poses challenges tion of green bonds as a using sustainable investment
when it comes to accurately financing tool for sustainable techniques.
projects in the country.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 30

LABOUR AND EMPLOYMENT
UPDATE

06
31
TALENT-AS-A-SERVICE: AN EMERGING
TALENT MANAGEMENT SOLUTION
In response to the current repository platforms. By strated in the ability to engage
global economic crisis, com- design, TaaS solutions are the talents on a need basis with
panies have been under pres- database of individuals who no complex recruitment and
sure to innovate to survive. possess special skills that termination processes includ-
Today, in the survival pack of companies may hire on a ing associated costs. TaaS
many companies are cost-cut- need basis to deliver on allows companies to manage
ting measures ranging from special assignments. their hiring cost by saving on
raw material sourcing, and benefits and allowances, tools,
cost of production, to human It is a model that enables busi- logistics, and working space in
resources-related costs nesses to harness specialized some cases.
among others. skills and top-tier talent within
the market without the com- TaaS also presents a business
One such innovation helping plexities typically associated opportunity for recruitment
companies to manage their with hiring and managing and staff outsourcing agen-
human resource needs and such high-caliber talent. cies to serve as intermediaries
ensure talent availability is between skilled persons and
“Talent-as-a-Service”. This new Some justifications making companies by providing man-
business model is promoting the model worthy of patron- agement services required
new ways of recruiting, age range from cost, scarcity through such platforms.
deploying, and exiting talents. of specific demanded talent,
and short-term need for some Ultimately, Talent-as-a-Service
specialized talents, among may also serve to support
others. Thus, for businesses business continuity planning
faced with special talent where contingency human
TALENT-AS -A-SERVICE needs but with limited resource needs could be met
(TaaS) AND ITS BENEFITS resources for engaging such to prevent disruption to oper-
talents on a full-time basis, ations at the loss of critical
The “Talent-as-a-Service” TaaS provides a window of talent.
(TaaS) model is the practice opportunity to meet such
where companies hire the human resource demands.
services of “special talents” on CONSIDERATIONS FOR ITS
demand by using digital Its cost-efficiency is demon- ADOPTION

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 32

While TaaS has great potential ensure the engagement of ment documentation.
to revolutionize talent man- quality resources for the value
agement processes, its adop- of money. 5. Meet Payment Obli-
tion cannot be wholesale gations: Money serves as a
without proper assessment 3. Clarify Goals and Out- key motivator to skilled
and some of the consider- come: To maximize time and persons. Companies expect-
ations are discussed below: derive the full benefit within ing to derive the best from
the engagement period, com- this service must fulfil agreed
1. Prior Preparations: panies must determine with payment obligations. Delays
The TaaS talent uses are deter- clear outcomes the objectives in honoring these obligations
minable by time and there- for the service. This provides may affect the meeting of
fore, companies must prepare clarity of focus for all parties deadlines and, in some cases,
adequately to derive the full while enabling the manage- the quality and quantity of
benefits of talents for their ment of work progress easy outcomes.
engagement. Prior prepara- and effective. By so doing,
tions will enable the engaged determining whether or not 6. Short to Long-Term
skilled persons to tackle an outcome is or has been Contract: For long-term plan-
objectives head-on and deliv- achieved during or at the end ning purposes companies
er results within the engage- of an agreed period may may consider short to
ment period. become straightforward. long-term contracts with
engaged talents. This
2. Be prepared to pay 4. Deal Swiftly with arrangement may serve to
Market Premium: Persons Incompetence: Even though support business continuity
sourced through TaaS solu- TaaS promises to deliver value planning where contingency
tions have “special skills” and for money companies engag- skill needs could always be
therefore, come at a premium. ing talent services through available for use by the com-
When demands for specific this platform must act to pany and prevent disruption
skill sets are high, companies swiftly correct any act of to operations at the loss of
cannot afford to pay anything incompetence by an engaged critical talent.
less than the market premium skilled person. To address this,
for the services. Companies companies must, as a matter
intending to leverage this of urgency, define clear disen-
service, therefore, must gagement procedures and
provide corresponding bud- processes in their engage- CONCLUSION
getary considerations to
“Talent as-a-service” talent
management solution is
emerging strongly and
providing a readily available
market for independent
skilled workers to sell their
expertise and be engaged. It is
also offering companies the
opportunity to outsource their
talent management process
and bridge the talent gaps of
skilled workers.

The “Talent as-a-service”

model of talent management
may be a game-changer for
the talent challenge, as well
as, providing win-win solu-
tions to all potential players in
that economy. Therefore,
companies must carefully
assess its uses and benefits
going forward.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 33

TRADE, TAX AND DISPUTE
UPDATES

07
34
ASSESSING OPPORTUNITIES FOR SME
AND ENTREPRENEURS UNDER AfCFTA
The African Continental Free Agenda 2063. incredible opportunities
Trade Area (AfCFTA) Agree- under the AfCFTA Agreement
ment is regarded as the lead- Also, the Agreement seeks to and make the most out of
ing and most important flag- eliminate trade barriers, boost these opportunities to grow
ship project under the African intra-Africa trade, and contrib- their businesses beyond the
Union’s Agenda 2063 to trans- ute to establishing regional borders of Ghana in 2024.
form the continent of Africa value chains that enable
into a global powerhouse. investment and job creation As part of its commitment to
as well as build long-term accelerate the growth of busi-
The World Bank reports that sustainable growth and nesses and trade under the
the Agreement has the poten- increased economic develop- AfCFTA framework, the Secre-
tial to create the largest free ment across various sectors of tariat has put in place several
trade area in the worldwith 1.3 the African market. measures to promote free
billion people across 55 coun- trade within the African
tries and a combined gross The AfCFTA initiative signed market including the AfCFTA
domestic product (GDP) up to by 54 African Union e-tariff Book, which is a digital
valued at US$3.4 trillion, with member states no doubt platform to ensure that tariff
the potential to lift 30 million presents considerable oppor- concession schedules are
out of extreme poverty. tunities for businesses across easily accessible to trade and
Among its stated objectives the African market for the customs authorities; a
include the opportunity tocre- trade in goods and services Non-Tariff Barriers (NTBs) –
ate a single market for goods which could be leveraged by which is intended to help
and services facilitated by the the multifaceted initiatives remove trade barriers by
free movement of persons under the agreement includ- allowing traders to report any
and goods across borders to ing the removal of trade barri- challenges they face in
deepen the economic inte- ers and facilitation of the free moving goods and services
gration of the African conti- movement of goods and within the African market.
nent and accordingly services across the African
promote the Pan-African continent. Entrepreneurs and Also, the Pan-African
vision of achieving an inte- small business owners in Payment and Settlement
grated, prosperous, and Ghana can therefore take System (PAPSS), which is a
peaceful Africa contained in advantage of some of the centralized Financial Market

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 35

has been rolled out to help 1. Firstly, the AfCFTA
secure real-time payments for initiative has created the Therefore, SMEs and business
goods and services across the opportunity for enhanced owners must prioritize devel-
continent. access to a larger market. As oping products and designing
Therefore, in this write-up, I noted earlier, the overall man- services that exceed the
shall endeavor to highlight date of the AfCFTA is to create required standards under
how entrepreneurs and small a single continental market AfCFTA and compete in the
business owners can leverage with a population of about 1.3 expanded market.
these initiatives. This is partic- billion people and a combined
ularly important because of GDP of approximately US$ 3.4 2. Secondly, AfCFTA has
the commanding hold that trillion. To achieve this, the created the opportunity for
SMEs have on African econo- elimination of trade barriers the free movement of goods
mies. The Economic Commis- and boosting intra-Africa and services. This is intended
sion for Africa has previously trade have become a key to create a visa-free zone
reported that SMEs account priority for governments. In within the AfCFTA countries to
for about 85% of employment particular, governments allow for easy movement of
and contribute about 35% to across the continent are goods and services. This
GDP in Africa. The World Bank aiming to advance trade in means that not only has
has also underscored the value-added production access to new markets been
growing importance of SMEs across all service sectors of the created, but also the opportu-
and estimates that SMEs African economy. In the nity to trade in goods and
represent about 90% of busi- process, a common market for services in other African mar-
nesses and more than 50% of the free movement of goods kets has significantly been
employment worldwide with and services will be created made easier with the commit-
the formal SME sector contrib- leading to an increase in new ment to enable the free
uting up to 40% of national market opportunities that movement of goods and
income (GDP) in emerging meet the criteria under the services within the common
economies. Agreement. A common market. Ghanaian businesses
market no doubt will create a can therefore expect to bene-
large market for Ghanaian fit from the free movement of
businesses which means the goods and services and must
opportunity to build strong leverage this to ship their
SOME OPPORTUNITIES FOR standards and offer competi- products across the common
SMEs UNDER AfCFTA tive products and services in area.
the free trade area.
3. Thirdly, AfCFTA has
created the opportunity for
partnership and collaboration
across the continent. This
opportunity has the potential
to create new partnerships in
production, marketing, sales,
distribution, and customer
service among others.There-
fore, for Ghanaian businesses
that cannot be in every
AfCFTA market directly, there
is the opportunity to partner
with other businesses in
chosen markets to scale up
and meet the needs of a
larger, more diverse, and
wider market. Businesses in
2024 must begin exploring
partnership opportunities
that leveragecomplementary
and unique business proposi-
tions to drive the AfCFTA
agenda.

4. Fourthly, AfCFTA has

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 36

created the potential for access to foreign markets but Its protocol has deliberate
increased access to funding also permits businesses in mechanisms to promote open
and investment for SMEs. The other jurisdictions to have market access, free move-
introduction and adoption of equal and unfettered access ment of goods and services,
the AfCFTA has opened the to the Ghanaian market. reduce trade tariffs, and
African market to a wide Therefore, there is the need to enhance the infrastructure for
range of economic interests in reposition Ghanaian business- the transport of both humans
various areas across the global es and build relevant capacity and goods. Given the
economy. With the assurance to meet the standardization pronounced role of the SME
of a ready market, the wider and certification require- sector in the Ghanaian econo-
investor community is now ments under the AfCFTA my and its contribution to job
very much aware of the protocol so as not to be disad- creation, it is expected that
potential of the new markets vantaged. Most importantly, the sector will take full advan-
and Ghanaian businesses the competition from other tage of the opportunities
should find it relatively easier businesses and jurisdictions created under AfCFTA to
to attract investors to invest in should also be seen as an enhance the prospect for
their products and services opportunity to continue to growth and business sustain-
that seek to take full advan- innovate to remain competi- ability, particularly across new
tage of the enlarged market tive in the wider market. markets within the continent.
and the free movement of Some of these opportunities
goods and services. This goal have been discussed above.
should be aggressively However, for Ghanaian busi-
pursued in 2024 to draw in nesses to take full advantage
additional funding and CONCLUSION of these enormous opportuni-
remain in operation during ties, there is the need to
the difficult economic times. AfCFTA represents by far the address the funding and
single most audacious plan knowledge gap that contin-
5. Fifthly, there is the for a continental free trade ues to plague Ghanaian busi-
opportunity for healthy com- commitment, globally. With a nesses. We also need to edu-
petition that leads to better, market size of more than a cate Ghanaian businesses on
and quality products and billion individuals, the AfCFTA the modalities for trading
services. With the increase in market remains the largest under AfCFTA to promote
market access and free move- free trade area in the world, compliance with the legal and
ment of goods and services, not just in terms of the regulatory compliance
Ghanaian businesses and number of people but also the regimes including the tax
entrepreneurs need to be potential volume of trade and implications of cross-border
aware of the fact that the tradable goods and services. trading and dispute settle-
agreement not only allows ment mechanism under the
Ghanaian businesses to trade protocol.
across borders and have

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 37

TRENDS AND INNOVATIONS

08

38
CIRCULAR ECONOMY: LEVERAGING
TECHNOLOGY FOR A SUSTAINABLE
FUTURE

The concept of a circular progression of the circular ience. This economic frame-
economy has gained consid- economy. Innovative technol- work focuses on preserving
erable significance in recent ogies are revolutionizing the the maximum value and use
times as countries globally way we design, manufacture, of products, parts, and materi-
confront the issues of distribute, and consume prod- als by minimizing waste and
resource depletion, environ- ucts, thereby making circular encouraging practices such as
mental deterioration, and the practices more feasible and reuse, repair, recycling, and
cascading impacts of climate scalable. Particularly, a com- the utilization of renewable
change. A circular economy prehensive understanding of a resources.
aims to transform our conven- business’s supply chain can
tional linear “take-make-dis- help mitigate environmental Therefore, the primary objec-
pose” model by emphasizing harm while enhancing profit- tive of the circular economy is
the significance of resource ability and competitiveness to optimize the use of avail-
regeneration, waste reduc- able material resources by
tion, and the promotion of . implementing three key prin-
sustainable practices. ciples: reduce, reuse, and recy-
THE CIRCULAR ECONOMY cle.
Unlike other economic
models that prioritize
economic factors over social
and environmental aspects, A. UNDERSTANDING THE
the circular economy CONCEPT OF CIRCULAR B. KEY PRINCIPLES OF
represents an important ECONOMY CIRCULAR ECONOMY
advancement that benefits
both businesses and consum- The circular economy, a grow- 1. Durability and Lon-
ers. ing trend in sustainability, gevity in Circular Economy:
aims to balance economic Central to the circular econo-
In this context, technology development, societal inclu- my lies the art of designing
plays a crucial role in the sion, and environmental resil- and building products for the

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 39

long term. This involves the throughout the entire life “take-make-dispose”
creation of goods that are not cycle of a product. This approach by introducing
only robust but also easily includes responsible sourcing innovative models such as
repairable, upgradable, and of materials, efficient manu- product-as-a-service, where
modular, thereby extending facturing processes, and the customers pay for the use of a
their life cycle and reducing implementation of reverse product rather than owning it.
the need for constant replace- logistics for the recovery and This shift incentivizes busi-
ment. Designing for durability recycling of products at the nesses to design products for
is not just about preserving end of their life. Circular durability and ease of mainte-
resources, but also about min- supply chains champion nance, aligning their success
imizing the environmental closed-loop systems, where with the longevity and perfor-
footprint associated with materials are continuously mance of their offerings.
frequent disposal. recycled and reintroduced
into the production process.
2. The Triple R
Approach: The circular econo- 4. Building Collabora-
my adopts the triple R tive Consumption: The circu- TECHNOLOGICAL INNOVA-
approach – Reduce, Reuse, lar economy promotes collab- TIONS DRIVING CIRCULAR
and Recycle – as the strategy orative consumption models ECONOMY
for resource management. such as sharing, renting, or
While reduction is about mini- leasing products instead of In the pursuit of a circular
mizing the consumption of outright ownership to mini- economy, technological
raw materials and energy mize waste and efficiently use breakthroughs are key in
during the production resources. This approach transforming conventional
process, reuse extends the life curbs the demand for new methods of production, con-
of products by refurbishing or products, promotes the sumption, and waste man-
repurposing them, whereas efficient use of existing agement. These advance-
recycling ensures that materi- resources, and minimizes ments pave the way for a
als are reincorporated into the waste. Collaborative con- more sustainable and
production cycle, thus miti- sumption is facilitated by digi- resource-efficient model that
gating the environmental tal platforms and technology, encompasses the entire prod-
impact of waste. enabling easy access to uct lifecycle. Here are some
shared resources. notable innovations and tech-
3. Fostering Circular nologies that are driving the
Supply Chains: Circular 5. Innovating Business circular economy:
supply chains are all about Models: Circular business
optimizing resource use models disrupt the traditional a. Artificial Intelligence for
Resource Maximization:
Artificial Intelligence (AI) plays
a crucial role in enhancing
resource management within
the context of the circular
economy. Machine learning
algorithms have the ability to
process large volumes of data
to identify patterns in con-
sumption, production, and
waste generation. This
data-driven approach allows
for more precise forecasting,
which in turn enables busi-
nesses to optimize their inven-
tory, reduce overproduction,
and minimize resource deple-
tion. Through pattern analysis
of data, machine learning
algorithms can provide
insights that help businesses
make more informed deci-
sions about resource alloca-
tion. This not only helps to

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 40

reduce waste and overpro- ty and authenticity. On the mizes waste generation but
duction but also contributes blockchain, every stage of the also optimizes the use of
to the sustainability of the supply chain from gathering resources.
circular economy by ensuring to processing to ultimate use
resources are used in the can be documented. This
most efficient manner possi- lowers the possibility of
ble. unlawful dumping and other
environmentally damaging CONCLUSION
b. Internet of Things (IoT) activities by guaranteeing
and Smart Products: The that the origin and manage- The circular economy, fueled
integration of the Internet of ment of items are understood. by technological advance-
Things (IoT) into product For instance, the technology ments, signifies a transforma-
design results in the creation can be employed by waste tive shift towards a future that
of smart, interconnected management companies or is more sustainable and
devices. These devices can industries to track and robust. As companies and
collect and analyze data validate the proper disposal of societies progressively adopt
throughout their entire lifecy- recyclables and garbage. It circular principles, the incor-
cle. This capability facilitates can also ensure that materials poration of innovative tech-
the real-time monitoring of are disposed of, recycled, and nologies will be crucial in max-
usage patterns, allowing for sorted appropriately in accor- imizing resource utilization,
predictive maintenance and dance with laws and environ- minimizing waste, and foster-
the efficient management of mental requirements. More- ing a more sustainable and
resources. over, businesses and organiza- fair global economy. The con-
tions advocating for a circular tinuous collaboration among
In essence, Smart products, as economy can utilize block- the private sector, govern-
a result of this integration, are chain technology to monitor mental bodies, and technolo-
able to contribute to the the life cycle of resources and gy innovators is vital to expe-
circular economy through the goods, ensuring their efficient dite the implementation of
extension of the lifespan of reuse, remanufacturing, or circular practices and ensure a
products by identifying recycling. harmonious equilibrium
potential issues before they between economic develop-
become serious problems, Innovative Materials and ment and environmental
thereby reducing downtime. Manufacturing Techniques: preservation.
Also, they can enable more Advancements in the field of
efficient recycling procedures materials science and manu-
by providing valuable data facturing techniques are
about the product’s composi- changing the way we
tion and condition. In the case approach product design and
of smart bins, they are manufacturing. These
equipped with sensors and advancements, which include
data analytics that can moni- the development of bio-based
tor and detect the fill level materials, the application of
and send alerts when they 3D printing technologies, and
need to be emptied. This the exploration of nanotech-
helps optimize waste collec- nology, are enabling the
tion routes, reducing fuel con- production of products that
sumption and emissions. are not only more durable and
recyclable but also have a
Ultimately, these generated reduced impact on the envi-
products are not only more ronment. By choosing to
efficient and reliable, but they utilize these materials in their
also contribute to sustainabili- production processes, indus-
ty by promoting circularity in tries are making a conscious
product lifecycles. decision to support the princi-
ples of a circular economy -
c. Blockchain for Transpar- where products are designed
ent and Traceable Supply and manufactured with their
Chains: Blockchain technolo- entire lifecycle in mind, from
gy boosts transparency and the sourcing of raw materials
traceability in supply chains, to the end of their useful life.
tackling issues of responsibili- This approach not only mini-

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 41

2024 BUSINESS TRENDS TO WATCH
OUT FOR
In the ever-changing land- Artificial Intelligence (AI), tivity and efficiency. Accord-
scape of the business world, expected to be one of the ing to Goldman Sachs, there's
staying at the forefront is standout technological potential for generative AI to
more than just an advan- advancements. Projections by boost global gross domestic
tage—it is a necessity. As we American technological product by 7 percent in the
gaze into the future, 2024 will research and consulting firm next decade, exerting a
stand out to be a year defined Gartner, hint that AI contribu- substantial influence on both
by transformation, adaptation, tion will reach 10 percent of all business and society.
and innovation. data generation by 2025,
setting the stage for substan- 2. Sustainable business
While global economic chal- tial growth from this year. technologies and practices:
lenges may present sizable In 2024, another significant
hurdles, the compelling forces Significant strides have trend will revolve around the
of technology and societal already been witnessed, with advancement of sustainable
shifts will also be too impact- OpenAI’s launch of ChatGPT in technologies and business
ful to be disregarded. the latter part of 2022. The practices such as clean, green,
generative AI landscape has and climate technologies.
Therefore, this article seeks to since experienced a surge in Gartner identifies sustainable
predict the top ten most nota- investor interest, fueled by technologies as crucial strate-
ble business trends every robust earnings from notable gic trends, forming a digital
organization should be poised companies such as Nvidia. framework that contributes
to adopt. Throughout 2023, tech giants to Environmental, Social, and
concentrating on generative Governance (ESG) outcomes.
AI have consistently outper-
formed the broader market. Gartner predicts that by 2027,
25 percent of Chief Informa-
TOP 10 TRENDS BUSINESSES Therefore, there is a need for tion Officers’ compensation
MUST PAY ATTENTION TO businesses to stay abreast will be tied to the impact of
with generative AI’s transfor- sustainable technologies
1. Generative AI: This mative potential and pursue adopted by businesses.
year, there is keen anticipation investments to leverage its full Equally, the Harvard Business
for the leaps in generative benefits for increased produc- Review emphasizes the

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 42

immense economic opportu- brands like Nike providing
nity, estimating a $12 trillion custom shoes in a myriad of While global
potential, even with achieve-
ment in just a few of the 60
styles and colors exemplify
this trend. As this continues,
economic chal-
identified areas, such as food businesses, regardless of size, lenges may pres-
and agriculture, cities, energy
and materials, and health and
are expected to adopt person-
alized solutions to foster
ent sizable hur-
wellbeing. deeper connections with their dles, the com-
customer base.
Key sectors including garbage pelling forces of
recycling, electric vehicles,
sustainable construction for
4. The data economy: In
the upcoming years, business-
technology and
homes and businesses, green es will recognize the growing societal shifts
energy, agricultural technolo-
gy, and carbon capture will
significance of data as a valu-
able asset. More companies
will also be too
witness strong investor inter- will be expected to enhance impactful to be
est in 2024. their operations and refine
customer offerings through a disregarded.
3. P e r s o n a l i z a - strategic approach to their
tion-at-scale: The rise of data. This preparation will
personalization on a large propel them toward the next
scale is fueled by customer phase - capitalizing on their become more accessible,
preferences, with studies indi- datasets to explore fresh busi- smaller companies in various
cating a growing inclination ness opportunities. niche sectors are likely to
toward companies dedicated adopt this trend.
to environmental sustainabili- An example of companies
ty. Simultaneously, the expan- pioneering this shift is John 5. The skills solution:
sion of the green economy Deere, which has innovatively The skills shortage has been a
reveals that eco-friendly sold data from its recurring topic in recent years
approaches can contribute to sensor-equipped farm equip- and companies’ response to
overall business success. ment to farmers, providing this challenge has included
valuable insights for produc- shifts in hiring practices,
Instances like L’Oréal creating tivity improvement. As focusing on candidates with
tailored cosmetics based on large-scale data collection relevant experiences and skills
individual skin types and and AI-driven analytics rather than traditional qualifi-
cations like education or age.
This approach will persist as a
prominent trend in 2024.

Moreover, there will be ongo-

ing efforts to invest in training
and upskilling, with a specific
emphasis on disruptive tech-
nologies like generative AI
and skills crucial in an AI-driv-
en economy.

6. Automation: In 2024,
the field of industrial automa-
tion is poised for increased
growth and advancement,
fueled by the convergence of
technologies like the Internet
of Things (IoT), edge comput-
ing, AI, Machine Learning, and
5G/6G. Businesses should
therefore be ready to consider
the adoption of new and
emerging trends such as an
increase in predictive mainte-
nance, real-time monitoring,

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 43

interconnected shop floors, appointing Chief Experience the youngest cohort in the
automated inventory control, Officers to embed these prin- workforce, emerging as a
and the application of AI algo- ciples into their overall busi- dominant force. Businesses
rithms for logistics optimiza- ness strategies. are expected to tailor their
tion and demand forecasting. approaches to cater to the
8. Health and Wellness: distinct preferences and
The incorporation of artificial The emphasis on health and values of this generation, plac-
intelligence, robotics, opti- well-being in the workplace is ing a strong emphasis on
mized logistics, streamlined gaining traction, signaling a diversity, inclusivity, and social
transportation, and workflow change in corporate focus responsibility.
automation will not only towards a more comprehen-
reduce timelines but also sive approach to employee To effectively attract and
lower costs. The introduction health, despite a slight dip in retain the tech-savvy and
of innovative technologies in growth. socially conscious Gen Z
supply chain management, demographic, organizations
such as the adoption of paper- CircleCare, a US-based com- will need to embrace strate-
less transportation docu- pany, contributes to this trend gies that resonate with their
ments, will further expedite by providing a platform that unique outlook on the work-
the movement of goods and motivates employees to adopt place and society.
contribute to cost savings. healthier lifestyles through
gamification and rewards.
These technological advance- Meanwhile, Trickle, a
ments are set to empower UK-based startup, is revolu-
industrial companies, allowing tionizing employee engage-
them to reach new heights in ment with its platform, CONCLUSION
terms of performance, capturing real-time experi-
efficiency, and competitive- ences and suggestions, and In a world fraught with uncer-
ness within the global market. fostering a culture of open- tainty, the key lies in cultivat-
It's foreseeable that in the year ness and collaborative prob- ing resilience in the face of
2024, the landscape of supply lem-solving. cybersecurity risks, economic
chain management will recessions, environmental
undergo a transformative These innovative approaches adversities, or challenges
hyper-automation revolution. are reshaping workplace posed by disruptive competi-
culture, highlighting the tors, among others.
7. The customer experi- significance of mental and
ence revolution: Visualize a physical well-being as integral The year 2024 promises to be
graph tracking your custom- factors in employee satisfac- a year of dynamic change and
ers' feelings at each point of tion and productivity. innovation. To thrive in this
interaction with your compa- landscape, businesses must
ny, products, or services – that 9. Remote selling and adapt and embrace these ten
is the essence of the new virtual events: The lasting key trends. It’s not just about
customer experience influence of the pandemic on surviving – it is about thriving
demands. how businesses engage with in a future filled with possibili-
their customers endures, and ties.
While companies traditionally in 2024, the significance of
based their business models virtual events and remote
on superior quality or value, selling will remain integral to
the focus in 2024 should be on marketing strategies.
making every interaction and
experience evoke a positive Companies are anticipated to
response from the customer. continue leveraging these
This should involve personal- approaches, utilizing online
ized marketing that caters to conferences, virtual product
customer needs promptly, launches, and remote partici-
ensures timely deliveries, pation in trade shows to effec-
promotes seamless setup and tively connect with global
installation, and drives effec- audiences and drive sales.
tive issue or complaint resolu-
tions. 10. The influence of Gen-
eration Z: This year, the spot-
Many companies are now light will be on Generation Z,

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 44

INSIGHTS

09
45
BEFORE BREAKING GROUNDS -
CHECKLIST FOR CONSTRUCTION
ACTIVITIES IN GHANA

Embarking on a construction only in support of evidence of an unseen force at work: “Reg-

project in Ghana can be an ownership of land and not a ulation”. Like an invisible hand
exciting endeavor, brimming permit to commence con- guiding the process, construc-
with opportunities to create struction activity without tion activities are enabled by a
one’s dream property or compliance with regulations web of rules and standards to
investment for the future. in force at a particular time. ensure the safety, sustainabili-
However, the journey from the ty, and quality of construction
vision to reality commences This article therefore intends works.
with compliance with an to provide a checklist to mea-
imperative list of well-estab- sure compliance with laws From skyscrapers to humble
lished and regulated frame- and ensure construction proj- homes, the construction
works. ects do not only come to industry operates under a
fruition but do so instrict watchful eye of regulation,
Ghana's regulatory regimes adherence to best practices driven by the imperative to
including compliance with and regulatory demands in protect lives, preserve the
zoning regulations, environ- Ghana. environment, and simply
mental factors, and building beautify and promote the
permits among others, orderly development of our
provide standards for the communities. And under-
commencement of any con- standing the legal framework
struction activity. Every phase REGULATORY LANDSCAPE is essential for both developers
of a construction undertaking FOR CONSTRUCTION IN and individuals looking to
demands meticulous plan- GHANA build.
ning, a keen understanding of
local laws, and unwavering In the ever-changing con- Regulating the construction
attention to detail to safe- struction sector where tower- industry involves adherence to
guard the project's viability. ing structures reach for the various standards and regula-
sky and fascinating infrastruc- tions and in Ghana, several key
The fact of land acquisition is ture shapes our cities, there is regulatory bodies oversee this

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 46

sector including the Town and
Country Planning Depart-
ment (TCPD), Ghana Stan-
dards Authority (GSA), the
Environmental Protection
Agency (EPA), Metropolitan,
Municipal, and District
Assemblies (MMDAs), Nation-
al Building Regulations, Build-
ing and Road Research Insti-
tute (BRRI).

By effectively coordinating
and enforcing these regula-
tions, these regulatory bodies
contribute ultimately to a
robust and thriving construc-
tion industry.

THINGS TO DO BEFORE
BREAKING GROUND: BUILD-
ING CONSTRUCTION CHECK-
LIST

There are several important project aligns with their needs 4) Architectural draw-
tasks and considerations to and expectations. ings: Architectural drawings
address before breaking are visual representations that
ground to commence a build- 3) Structural drawings: communicate the design
ing project. Here are the top Structural drawings should be intent and technical details of
ten (10) key ones: done in the pre-construction a building or structure. They
phase as they are crucial for include plans, elevations,
1) Conduct a thorough ensuring the safety, compli- sections, and details, created
site assessment: A compre- ance, and coordination of a using computer-aided design
hensive site assessment building project. These draw- software. These drawings
includes evaluating the site's ings encompass detailed facilitate communication
geological conditions, topog- plans and specifications that among stakeholders, aid in
raphy, soil quality, and any outline the design and place- obtaining permits, guide con-
potential environmental ment of load-bearing struction, and serve as a valu-
impacts. This assessment will elements, such as beams, able record for future refer-
help you determine if any site columns, walls, and founda- ence. Architectural drawings
preparation or mitigation tions. They also incorporate combine technical precision
measures are necessary. calculations for structural and artistic representation to
integrity, including factors like ensure a shared understand-
2) Engage with local live loads, dead loads, wind ing of the design, assist in the
communities and stakehold- loads, seismic requirements, construction process, and
ers: For individuals primarily and fire protection measures. document the building's
interested in utilizing the By following these drawings, historical and architectural
property for investment construction professionals significance.
purposes, it is advisable to can ensure the structural
prioritize the establishment of stability of the building com- 5) Building permit:
constructive connections with plies with local building codes, There is a common miscon-
local communities and stake- coordinate the integration of ception that acquiring a build-
holders. This can be achieved different components, plan ing permit grants you the
by actively engaging in con- construction activities and unrestricted right to put up
sultations and discussions to estimate costs accurately, and any structure on your land. In
understand their concerns, facilitate effective communi- essence, the belief is that
proactively address potential cation among project stake- obtaining a building permit is
issues, and ensure that the holders. all that is required for con-

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 47

struction. This prevalent
misconception needs to be
obtained, it does not grant
complete freedom to proceed Every phase of a
addressed. In Ghana, a build- with construction without construction un-
ing permit is a vital compo- further involvement from the
nent of the construction District Planning Authority. dertaking de-
process, serving as official
authorization from the appro-
The permit holder must regu-
larly notify the Authority of the
mands meticu-
priate regulatory body to com- intention to commence work lous planning, a
mence building activities. The
essence of a building permit
and provide regular updates
on the various stages of con- keen under-
lies in its role as a safeguard, struction. Each stage, such as standing of local
ensuring that construction foundation work or roofing,
projects meet prescribed stan- must be inspected and laws, and un-
dards and adhere to relevant
regulations.
approved by the Authority
before proceeding to the next.
wavering atten-
tion to detail to
6) Fire report: A Fire
The issuance of a building
permit signifies that the Report is essential before con- safeguard the
proposed construction plans struction to ensure compli- project's viabili-
have been thoroughly ance with fire safety regula-
reviewed and evaluated by the tions, protect life and property, ty.
responsible authority. This and prioritize worker safety.
evaluation takes into account The report assesses and
factors such as structural addresses fire safety compli- ties, and property damage
integrity, compliance with ance, including the installa- due to fires.
building codes, adherence to tion of fire protection systems
zoning regulations, and con- and emergency exits, and 7) Environmental
sideration of environmental evaluates risks to the con- permit: This permit evaluates
impact. By obtaining a build- struction site and neighboring potential environmental
ing permit, builders and prop- properties. By incorporating impacts, such as pollution and
erty owners demonstrate their fire safety measures early on, waste management, and
commitment to responsible the Fire Report helps create a ensures compliance with
construction practices and safe and secure environment environmental regulations. By
their willingness to comply for occupants, workers, and obtaining an Environmental
with legal requirements. nearby structures, reducing Permit, construction projects
the potential for injuries, fatali- can minimize harm to the
Once a building permit is environment, comply with
laws, engage stakeholders,
promote sustainability, and
maintain environmental qual-
ity throughout the construc-
tion process.

8) Hire qualified project

team: Assemble a team of
professionals, including archi-
tects, engineers, contractors,
and consultants, who are
experienced in the construc-
tion industry. These profes-
sionals bring their specialized
skills and experience to the
table, contributing to the
effective execution of the proj-
ect. Their collective knowl-
edge enables seamless coor-
dination, efficient prob-
lem-solving, and adherence to
local regulations and building
codes. By investing in a skilled
project team, investors can

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 48

maximize project outcomes, Workers must be made aware and proper disposal of con-
minimize risks, and achieve of the importance of taking struction debris, to minimize
timely and high-quality con- health and safety precautions their environmental footprint.
struction results. seriously to mitigate potential By implementing these and
risks and ensure a safe work- other sustainable initiatives,
9) Ensure your project ing environment. construction companies can
team adheres to health and help mitigate the environ-
safety measures: It is crucial 10) Implement sustain- mental impact of their activi-
to prioritize the health and able initiatives: Currently, the ties and contribute to a more
safety of both workers and the conversation of going green sustainable and eco-friendly
surrounding community has shifted to green construc- construction industry.
when undertaking any con- tion. In response to the envi-
struction project. Often, the ronmental concerns
importance of this require- surrounding construction
ment is overlooked, but it is materials, there is a growing
essential to consider that the emphasis on sustainable CONCLUSION
risks have future consequenc- initiatives within the industry.
es. An employer or main con- It has been observed that con- Before one begins a construc-
tractor can be held responsi- struction materials signifi- tion activity in Ghana, a
ble for the actions or negli- cantly contribute to environ- prelude to breaking ground
gence of their employees or mental degradation. As a involves understanding the
subcontractors. This liability result, there is a call for con- various best practices and
arises when the actions occur struction companies to adopt regulatory undertakings. It is
within the scope of their green practices and imple- an epic journey that demands
employment or while carrying ment sustainable initiatives in an understanding of the laws,
out work on behalf of the their operations. For example, regulations, best practices
employer. To mitigate vicari- construction companies can and permits that wield their
ous liability risks, it is essential incorporate green building mighty influence over every
to recruit a competent work- practices by using environ- facet of construction. Those
force and provide them with mentally friendly materials who desire to embark on this
appropriate work tools and such as recycled or low-im- odyssey must cross treacher-
adequate supervision and pact materials in their proj- ous legal waters, lest they
training. ects. provoke the penalties and
disputes that lie in wait.
Picture a scenario where They can also prioritize energy
workers are seen working efficiency by installing ener- Embracing the wisdom of
without proper safety gear, gy-saving systems, such as qualified professionals, erect-
such as helmets. This will not solar panels or efficient insula- ing fortresses of safety, and
only put their personal tion. Implementing water championing sustainable
well-being at risk but also conservation measures, such initiatives, can rise above the
jeopardize the overall safety of as rainwater harvesting challenges and shape a celes-
the construction site. Without systems or low-flow plumbing tial landscape where con-
adequate head protection, fixtures, can also contribute to struction thrives, leaving an
workers are vulnerable to sustainability. Additionally, indelible mark upon the realm
serious head injuries in the construction companies can of construction in Ghana. And
event of accidents or falling adopt waste management the recommended checklist
objects. strategies, such as recycling items in this article are a must.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 49

THE SUSTAINABILITY CONVERSATION:
WHAT YOU NEED TO KNOW

The concept of sustainability understanding of the emerg- At the core of environmental

is not new. It has been around ing demands of sustainability sustainability is the demand
for a while and only became must be amplified. for the conservation of
widespread after the Brundt- resources involves using them
land Report from the United Therefore, this write-up seeks efficiently to minimize waste
Nations’ World Commission to demystify the core con- and reduce depletion. It
on Environment and Develop- cepts underlying sustainabili- encourages practices such as
ment in 1987. ty and its emerging demands recycling, using renewable
energy sources, and the
From a development implementation of energy-ef-
perspective, the report . ficient technologies to con-
defined “sustainable develop- serve water and reduce pollu-
ment” as development that THE CORE CONCEPTS OF tion while protecting the
“meets the needs of the pres- SUSTAINABILITY ecosystem or biodiversity.
ent generation without com- Further, it seeks to protect life
promising the ability of future The three central core con- on Earth as preserving diverse
generations to meet their cepts under the sustainability ecosystems ensures the
own needs” and has since umbrella today are Environ- balance of species and habi-
been predominantly about mental, Economic, and Social tats – essentials for the health
the environment. Sustainability: of the planet.

Today, the conversation about 1. Environmental Sus- Various environmentalists

sustainability has been broad- tainability: This was the earli- have coined several principles
ened to include economic est consideration of sustain- to guide the understanding of
and social considerations and ability. Its main goal remains environmental sustainability.
how businesses are managed. to promote the preservation Some of these include:
Equally, both public and of natural resources and its
private entities are being held ecosystem – by sustaining a) Intergenerational
to a high standard of compli- them since they are indeed equity: this principle relates to
ance. This means that efforts finite. the notion that every genera-
to build an appreciation and

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 50

 ability: Economic sustainabili-
ty focuses on the ability of an
economy to support current
and future needs while main-
taining the environmental and
social well-being of the com-
munity. It involves managing
economic activities in ways
that do not deplete resources
or destroy the ecosystem. It
also focuses on the natural
resource base that provides
physical inputs, both renew-
able and exhaustible into the
production process.

It does not only refer to the

activities of a nation but of
businesses. It demonstrates a
relationship between compa-
nies and matters related to the
social and environmental
aspects. Businesses play a
huge role in the discussion of
tion must act in a manner that c) Waste reduction: this economic sustainability.
promotes the conservation of principle ensures that the Sustaining economic growth
the resource for the next gen- amount of waste generated is over the long term necessi-
eration and every generation minimized. Borne from this tates the preservation of natu-
has equitable access to natu- principle is what is commonly ral and human resources,
ral resources. To promote known as the 3Rs; reduce, making economic sustainabil-
intergenerational equity, pres- reuse, and recycle - approach- ity crucial for businesses. Pres-
ent generations are obligated es that are popularly used ently, companies cannot
to take certain actions such as among people and compa- afford to compromise the
the selection of raw materials nies. The reduction approach environment or community
in an environmentally respon- focuses on eliminating or min- welfare in pursuit of economic
sible way. imizing the overall generation expansion, as this ultimately
of waste by minimizing the disrupts the fundamental con-
b) Social equity: this use of resources, the reuse text within which the business
principle ensures fairness and approach is used to minimize functions.
inclusivity in environmental the generation of waste by
benefits across different social finding a second purpose for Economic sustainability prac-
groups within a community or intended wasteto extend its tices include:
society. It emphasizes lifespan, and the recycling
addressing environmental approach involves the process a) The management of
issues in a way that considers of changing the intended resources to efficiently mini-
and promotes the well-being waste to create new materials mize environmental impact
and rights of all individuals, while helping conserve the while promoting the use of
particularly those who are use of raw materials. renewable resources,
marginalized or vulnerable. It b) Assessing the environ-
involves ensuring that envi- Environmental sustainability mental consequences of
ronmental policies and is essential for the well-being economic actions and estab-
actions enhance the overall of both the planet and its lishing goals aimed at shaping
health and well-being of com- inhabitants. By adopting a more habitable future.
munities, particularly those responsible practices such as c) Forming policies that
most affected by environmen- renewable energy sources steer clear of short-term bene-
tal challenges. And includes and sustainable agriculture fits that could jeopardize
addressing issues such as practices, and promoting con- future economic stability or
access to clean water, reduc- servation efforts, a sustainable the health of the environment.
ing exposure to pollutants, future can be created. d) Transitioning to clean
and improving living condi- energy such as solar, wind, and
tions. 2. Economic Sustain- hydroelectric power which will

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 51

Today, the including education, health-
care, housing, and adequate
weather events like hurri-
canes, droughts, floods, and
conversation social support. wildfires leading to severe
economic and social impacts
about sustain- In essence, the principles of and effects on ecosystems,
social sustainability serve as a leading to shifts in plant and
ability has compass guiding communi- animal ranges, disruptions in
been broad- ties towards fostering inclu-
sive, equitable, and thriving
natural habitats, and threats
to biodiversity.
ened to in- societies, where the well-be-
ing and dignity of every indi- B. Digital Carbon Foot-
clude econom- vidual are upheld, fostering a
sense of belonging and unity
print: A digital carbon foot-
print represents the green-
ic and social among its members. house gas (GHG) emissions
generated by digital technolo-
considerations gy resources, devices, tools,
and how busi- and platforms. This encom-
passes emissions from manu-
nesses are SOME
TERMS
SUSTAINABILITY facturing devices and equip-
ment, the energy necessary to
managed. A. Climate Change: The
operate them, data transmis-
sion, and the power con-
United Nations defines sumed by servers and data
climate change as long-term centers. Globally, digital tech-
not only reduce the carbon shifts in temperatures and nologies account for 3.7% of
footprint but promote innova- weather patterns. The contin- GHG emissions, with video
tion and economic opportuni- uous change to the climate is streaming standing out as a
ties. mainly driven by increased significant contributor. To
human emissions of green- decrease emissions in our
3. Social Sustainability: house gases that have a wide- daily digital activities, strate-
Environmental sustainability spread negative impact on gies include limiting stream-
can be said to be a stepping the environment. Some nega- ing, extending the lifespan of
stone for the development of tive impacts include extreme devices, and opting for ener-
social sustainability. Social
sustainability generally relies
on certain principles some of
which include; quality of life,
equality, diversity, access to
key services, social cohesion,
social responsibility and
justice, community develop-
ment and well-being, product
responsibility, community
resilience, and cultural com-
petence. These guiding princi-
ples serve as pillars underpin-
ning a society's capacity to
thrive harmoniously, promot-
ing well-being and inclusivity
among its members. It advo-
cates for equal opportunities,
regardless of social back-
ground, ethnicity, or gender,
aiming to create a level play-
ing field that fosters fairness
and empowerment for all.

One critical aspect of social

sustainability is that it revolves
around ensuring universal
access to essential services,

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 52

gy-efficient technology. ties within the organization's the progression of products at
jurisdiction, like stationary every stage of their voyage
C. Net Zero: Net zero combustion (e.g., fuels, heat- across the supply chain. This
refers to the balance between ing sources), and the creation practice revolves around
the greenhouse gases (GHG) of CO2 during cement manu- recognizing and gathering
emissions introduced into the facturing or chemical process- data within the supply chain
atmosphere and the subse- es. and disseminating this infor-
quent removal of these GHGs. mation to both internal and
Essentially, it is attained when F. Scope 2 emissions: external stakeholders. It allows
the quantity of GHG emissions Scope 2 emissions encompass consumers to make informed
released matches the amount the indirect release of green- decisions about the products
removed from the atmo- house gases (GHGs) arising they purchase, encourages
sphere. This principle plays a from the procurement of ethical and sustainable prac-
pivotal role in combating energy, like electricity, steam, tices, and helps companies
climate change by aiming to heat, and cooling, acquired mitigate risks associated with
curb the escalation of Earth's from utility providers. Essen- their supply chains.
temperature beyond a critical tially, they represent all GHG
point, thus averting potential- emissions discharged into the
ly drastic climate consequenc- atmosphere due to the utiliza-
es. This balance can be tion of purchased energy.
achieved through various Among various sources, elec- CONCLUSION
means, including carbon tricity often stands as the
removal technologies, refor- primary contributor to Scope 2 At its core, sustainability is a
estation, afforestation, and emissions for most organiza- collective commitment—an
other natural or artificial tions. Reporting these emis- acknowledgment that the
methods aimed at absorbing sions is obligatory for many decisions we make today have
or offsetting emissions. The entities, playing a vital role in lasting repercussions for
pledge to reach net zero comprehending and con- future generations. It urges us
implies the aim to minimize trolling a company's ecologi- to act as stewards of our envi-
carbon footprint and offset cal footprint. ronment, taking into account
remaining emissions. not only the immediate gains
G. Scope 3 emissions: but also the long-term conse-
D. Greenwashing: Green- Scope 3 emissions represent quences of our actions. It chal-
washing is when a company the indirect environmental lenges businesses to innovate,
allocates more resources and impacts stemming from an not only for profitability but
effort to portray itself as envi- organization's actions, yet also for the well-being of com-
ronmentally conscious rather these emissions are not direct- munities and the planet.
than genuinely reducing its ly under the organization's
environmental footprint by ownership or control. They Sustainability regulations are
engaging in deceptive mar- pose considerable challenges important for sustainable
keting tactics. This misleading in terms of measurement, development and growth. The
strategy allows companies to monitoring, and reporting due more nations delay in passing
overstate their environmental to their diverse range of sourc- important regulations; more
friendliness, ultimately sabo- es. These sources encompass damage will have occurred on
taging genuine endeavours to purchased goods and services, Earth. Understanding what
diminish emissions and tackle capital goods, upstream and sustainability means and its
the climate emergency. By downstream transportation terms is essential in today’s
employing misleading mar- and distribution, business world for companies and indi-
keting and presenting inaccu- travel, employee commuting, viduals. It enables both com-
rate claims about the sustain- leased assets, waste generat- panies and individuals to
ability of their products or ed during operations, and actively engage in discussions
practices, they partake in the investments. and play a meaningful role in
act of deceiving consumers contributing to societal
about environmental benefits. H. Supply Chain Trans- well-being.
parency: Supply chain trans-
E. Scope 1 emissions:- parency entails establishing
Scope 1 emissions refer to the an environment of ongoing
direct release of pollutants enhancement within a com-
from sources controlled or pany and throughout value
owned by an entity. These chains to offer verifiable,
emissions occur due to activi- data-centric details regarding

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 53

SUSTAINABLE OFFICE MANAGEMENT
PRACTICES FOR 2024
Effective office management feedback. Creating open lines all team members have access
entails monitoring and maxi- of communication such as to documented copies of
mizing a range of administra- making use of digital chan- crucial policies, processes, and
tive responsibilities, staff, and nels, holding frequent team information such as a Human
resources to maintain a meetings, providing clear Resource Handbook, and
productive workspace. For a information, and encouraging establishing procedures for
company to achieve its goals, an atmosphere in which routinely providing and
effective resource allocation, suggestions and grievances receiving will help the team to
streamlined workflow, trans- may be openly shared are grow and improve. Effective
parent communication, and ways of achieving a great work and unambiguous communi-
the development of a positive culture. An open-door policy, cation is the cornerstone of
working culture must be high for instance, can be put in any prosperous workplace.
on the agenda. These tech- place to promote an atmo-
niques are essential for sphere in which staff mem- 2. Agile Workspace
long-term success in the com- bers are at ease to approach Design and Ergonomics: This
plex modern workplace. This supervisors or fellow workers places a strong emphasis on
article seeks to explore a thor- with queries or grievances. adaptability, flexibility, and
ough analysis of simple, yet Hosting departmental meet- teamwork to support a range
effective tactics that business- ings, get-togethers, of work styles and tasks. The
es may use to boost output, one-on-one conversations to physical environment has a
create a positive work atmo- go over updates, achieve- significant impact on the
sphere, and encourage teams ments, and difficulties, and work experience. Consider
to reach their best outcomes use of digital channels such as implementing agile work-
in 2024. mail, instant messaging, and space designs that accommo-
video conferencing just to date a variety of work styles,
1. Clear Communication mention a few can foster from flexible work arrange-
Channels: In the workplace, effective communication in ments such as open areas for
having clear channels of com- the working environment teamwork, quiet areas for con-
munication means creating which in turn, will reduce centration, and spaces for
effective ways for team mem- misunderstandings and meetings or group discus-
bers and departments to promote a collaborative atmo- sions. Ergonomic furniture
share ideas, information, and sphere for work. Also, ensuring and adjustable work stations

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 54

improve employee well-being streamlining workflow and workflow automation technol-
and comfort by lowering the minimizing mental switching. ogies. Real-Time communica-
risk of weariness and increas- Here, all related jobs are tion, video conferencing, and
ing overall productivity. An grouped and attended to collaboration amongst on-site
agile workplace fosters inno- accordingly. Making use of or remote teams are made
vation, collaboration, and task management applica- easier by tools like Slack,
employee well-being. Provid- tions such as calendars, Microsoft Teams, or Zoom,
ing easy access to technology reminders, etc. which serve as which enhances teamwork
such as charging stations, trackers to facilitate efficient and connectivity. Project
multiple screen setups, and task organization. Routinely processes for instance are
wireless connectivity supports evaluating progress, and streamlined by platforms like
seamless workflow. Also, to modifying priorities helps to Asana, Trello, or Jira, which
improve mood, reduce stress, maintain alignment with makes it possible to assign
and increase productivity, objectives and evolving tasks, monitor progress, and
natural elements such as demands. Putting these tech- set deadlines for increased
natural light, plants, and niques into practice, will not efficiency and organization. To
outdoor views should be inte- only increase individual save time and reduce errors
grated into the workspace, production but also contrib- such as repetitions, adopt
and admonishing team mem- ute to the team's overall automation tools and soft-
bers on the need and respect efficiency. Encourage employ- ware such as Zapier, IFTTT, or
for each other’s space plays a ees to manage their time custom scripts. Furthermore,
critical role in ensuring effectively. Efficient time to enhance collaboration,
productivity on all angles. management boosts produc- provide easy access to shared
tivity while decreasing stress. files, and ensure data security,
3. Time Management cloud computing services
and Prioritization Tech- 4. Harnessing the Power such as Google Workspace,
niques: Time is a limited of Technology: Take advan- Microsoft 365 or Dropbox can
resource, and understanding tage of modern technologies be adopted. In dealing with
its management is critical to to automate repetitive jobs data analysis, tools such as
productivity. Setting priorities and optimize workflows. There Google Analytics and Tableau
and managing one’s time well are several ways to improve help in making informed deci-
is essential for staying produc- task completion speed, mini- sions, identifying trends, and
tive at work. Encourage mize errors, and eliminate improving strategies for
employees to use time-track- human labor, including proj- better business outcomes.
ing tools, and efficiently priori- ect management tools, Technology adoption mini-
tize jobs. Grouping tasks collaboration platforms, and
according to significance and
urgency so that attention is
directed towards what really
matters. For instance, the
ABCDE method can be con-
sidered, to efficiently manage
time, where A represents the
most important and E, the
least important. Moreover,
setting up specified time
blocks for certain projects or
kinds of work reduces distrac-
tions and improves focus.
Setting SMART Goals also
facilitates the establishment
of precise targets and
provides direction and con-
centration. Another technique
to adopt is the “POMODORO”
technique which entails work-
ing for a predetermined
amount of time and taking a
brief rest. “BATCHING TASKS”
is another technique that
improves efficiency by

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 55

 new situations.

8. Wellness Initiatives for

Employee Well-Being: Office
management requires an
understanding of employees'
entire well-being. Introducing
wellness initiatives such as
health screenings, therapies,
mindful pauses, and walking
meetings just to mention a
few, that focus on work-life
balance, mental health, and
physical health boosts the
work output of workers. In the
sense that, motivated and
well-rested workers are more
likely to make a good impact
in the workplace.

mizes errors, expedites task Managers can enhance team

completion, and decreases members' sense of responsi-
physical labor. bility, develop new skills, and CONCLUSION
maximize productivity by
5. Empowerment and carefully allocating assign- Implementing these practices
Development: Employees ments based on individual collectively contributes to a
must be given the chance to competence. Assigning tasks well-managed and thriving
grow professionally and to the appropriate people workplace. Each practice
acquire new skills by investing deliberately and thoughtfully addresses specific aspects of
in their empowerment. Giving is known as Thought Task office management, fostering
them the freedom, power, Delegation and it improves a holistic approach that
and tools to decide for them- the working environment in enhances overall productivity,
selves and accept responsibili- several ways. Allocating collaboration, and employee
ty for their job encourages responsibilities according to satisfaction. By combining
accountability and opportuni- the right individuals not only strategic communication,
ty for skill development. enhances production but also thoughtful workspace design,
Providing workshops, semi- fosters a sense of accountabil- time management tech-
nars, training, and initiatives to ity and skill enhancement niques, technological integra-
cultivate fresh proficiencies or within the workforce. tion, employee empower-
hone current ones. Promote ment, continuous improve-
an environment that values 7. Continuous Improve- ment, and a focus on well-be-
ongoing education, coaching, ment Mindset: Encouraging a ing, organizations can create
and acknowledgment. Recog- culture of ongoing develop- an environment that not only
nizing the achievements of ment where employees are at optimizes efficiency but also
team members either by all times admonished and cultivates a positive, innova-
verbal praise, awarding prizes pushed to have a growth tive, and resilient workplace
or other forms of recognition mindset and not remain culture.
encourages them to perform static. Evaluating office proce-
well and maintain engage- dures regularly, getting staff
ment. Employees who feel input, and making necessary
empowered not only contrib- adjustments considering new
ute more efficiently to the information, aids in the
success of the company but growth of the organization
are also more engaged. and its individuals. Continu-
ous improvement as a way of
6. Thoughtful Task Dele- thinking guarantees flexibility
gation: Effective delegation is and reactivity to changing
an art that involves under- obstacles. This way of thinking
standing team members' makes sure the company
strengths and weaknesses. stays flexible and adaptable to

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 56

INDUSTRY SPOTLIGHT

10

57
GUINNESS GHANA LAUNCHES ECO-
FRIENDLY TRANSPARENT MALTA
GUINNESS BOTTLE IN SUSTAINABILITY
PUSH
Guinness Ghana Breweries She pointed out the need to commitment to reducing
PLC, the leading beverage consider the entire supply plastic pollution.
company in Ghana, has chain, from sourcing raw
unveiled a new clear bottle for materials to delivering the Shifting toward packaging
Malta Guinness, the country's final product, to design a that is renewable and widely
most popular malt brand. This more sustainable approach. recyclable is a central focus,
innovative bottle is made up with the brand's transition to
of 30% recycled material and Guinness Ghana has under- 100% recycled plastic project-
aligns with Guinness Ghana's taken significant efforts to ed to save over 890 tons of
commitment to achieving reduce its environmental new virgin plastic annually,
zero waste to landfill through- impact and tackle plastic significantly reducing the
out its operations and supply waste and pollution, in line carbon footprint.
chain. with its 10-year global
program, "Society 2030: Spirit Sylvia Owusu-Ankomah,
Felicite Nson, Managing of Progress." The introduction Corporate Relations Director,
Director of Guinness Ghana, of these clear bottles highlighted the brand's
emphasized the importance represents a significant stride responsible approach to using
of sustainability, affordability, toward more sustainable high-quality raw materials to
and safe packaging within the packaging solutions and a maintain the authentic taste
company's business model.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 58

of their products. The move to plastic cleanup and aware- a landmark partnership with
produce Malta Guinness plas- ness initiative in Agbog- “Coliba Ghana”. This collabora-
tic bottles from 30% recycled bloshie in the Greater Accra tion aimed to establish ten
material underscores their Region. The campaign plastic bottle buy-back
dedication to making positive centered on community centers in Accra and Kumasi.
contributions to the environ- involvement and marked a
ment. significant step taken by this The primary goal was to
acclaimed malt brand to collect used plastic bottles
Guinness Ghana has consis- champion the cause of plastic from consumers, thus stimu-
tently demonstrated itself as a sustainability. lating higher collection and
pioneer in the Ghanaian recycling rates and contribut-
corporate landscape, champi- Their efforts included driving ing to a cleaner environment.
oning sustainability within its conversations around plastic
business operations. Their pollution and taking tangible Also in 2022, the listed compa-
extensive track record actions to address this press- ny, with its commitment to
includes numerous past ing issue. Recognizing that becoming sustainable by
sustainability initiatives and most consumer plastic pack- design and using only recycla-
campaigns. aging is often disposed of ble materials totally phased
For instance, last year in after single use, leading to out and ended production of
August 2022, Malta Guinness environmental concerns, Orijin Bitters in plastic sachet
spearheaded a nationwide Guinness Ghana entered into bags.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 59

PAST EVENTS

11

60
THE INSTITUTE OF STATISTICAL, SOCIAL
AND ECONOMIC RESEARCH (ISSER)
CONFERENCE ON CLIMATE FINANCE

The ISSER at the University of oration and discussions on Focus was directed towards
Ghana hosted an international critical actions required to the collaboration between the
conference centered around drive Africa's transition toward public and private sector
the theme "Climate Finance a greener and more prosper- which was emphasized as a
for Sustainable Energy Transi- ous future. factor contributing to the
tions in Africa" to foster collab- growth of sustainable energy
transitions.

signaling a decisive shift from

fossil fuels toward greater
utilization of renewable
energy resources.

UNITED NATIONS CLIMATE Another significant outcome

of the conference was the
CHANGE CONFERENCE (COP 28) establishment of a loss and
damage fund aimed at
addressing the repercussions
of climate-related disasters,
COP28 stands as the global drew over 70,000 delegates,
including floods, droughts,
nexus for multilateral deci- consisting of business leaders,
and similar events. This fund
sion-making on climate youth representatives, climate
is designed to provide finan-
change. This conference, scientists, and diverse stake-
cial support for recovery and
hosted in Dubai, United Arab holders. Among the pivotal
restoration efforts in affected
Emirates from November discussions, the conference
regions.
30th to December 12th, 2023, culminated in an agreement

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 61

UPCOMING EVENTS

11

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 62

INTERNATIONAL CONFERENCE ON ENVIRONMENT,
SOCIAL GOVERNANCE AND SUSTAINABLE
DEVELOPMENT OF AFRICA (ICESDA 2024)

The Green Communities pathways to transform our (AFCFTA) that will highlight
International in partnership world into a sustainable and issues such as Sustainable
with ACeBI, Chamber of livable place. trade and investment
Agribusiness Ghana and systems in Africa, Sustainable
other partners set to organize The conference is positioned resource mobilization, wealth
the first-ever international to bring business leaders, creation and management in
conference on Environment, political leaders, church and Africa, Sustainable policies,
Social, Governance and traditional leaders, academ- and regulations of the Africa
Sustainable development of ics, ESG and CSR practitioners Free Trade Area and among
Africa at the Kwame Nkru- both locally and globally with others.
mah University of Science specifics to Africa at a
and Technology, KNUST, one-stop-shop to discuss the Among others, the confer-
Kumasi on the 26th-29th of contributions of corporate ence is by far the largest
March 2024. organizations in delivering international gathering in
sustainable development Africa on the ESG/CSR
The conference is with the goals and more. agenda, bringing together
theme: “Enhancing Environ- over 600 business executives,
ment, Social Governance and There would be impressive, political leaders, academics,
Sustainability (ESG) for and educational topics for traditional and religious
Africa’s development”. discussion on ESG/CSR and leaders, and policymakers,
The main aim is geared sustainability of the Africa think thanks to expanding
towards bringing together Continental Free Trade Area their knowledge of new
scholars, ESG practitioners, research findings and innova-
and decision-makers in tions so that they can apply to
Ghana, Africa, and around the improve business decisions
globe to discuss innovative and strategic initiatives.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 63

AFRICA’S GREEN ECONOMY SUMMIT
Africa's Green Economy and business executives, all around four key pillars of the
Summit, 21-23 February 2024 under one roof with African green economy, which repre-
in Cape Town, South Africa, is governments, cities, and sent the cornerstones of
a platform that unites the policy-makers. sustainable development.
global investor community, These pillars are green trans-
project owners, and business The theme of the second port, renewable energy, waste
executives, all under one roof edition of Africa’s Green Econ- management, and water
with African governments, omy Summit is “Mobilizing services. Each of these sectors
cities, and policy-makers. Investments for Green plays a critical role in shaping a
Growth”. This theme under- greener and more prosperous
It is a groundbreaking event scores the urgent need for Africa.
that connects people and increased investments in
organizations, fostering green initiatives across the By promoting the four key
knowledge sharing and African continent. The pillars of the green economy,
collaboration, and steering summit aims to catalyze these this summit sets the stage for
the continent towards a investments and create an Africa to leapfrog into a future
sustainable future. This environment where green where environmental con-
summit is a platform that projects can flourish. sciousness and economic
unites the global investor progress go hand in hand,
community, project owners, The conference program of creating a brighter and more
this summit is structured sustainable future for all.

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 64

2024 AFRICA PROSPERITY DIALOGUES

Heads of institutions, captains between the continent’s able and replicable and are
of industry, and leaders of the private sector and govern- ready for financing and imple-
international community say ments to promote the imple- mentation to significantly
they are geared up for the mentation of the AfCFTA.Ex- enhance trade and invest-
second edition of the Africa ploring the theme “The ment among African nations.
Prosperity Dialogues African Continental Free
(APD2024), which will take Trade Area (AfCFTA): From The 2024 edition of the Africa
place in Ghana from Thursday Ambition to Action, Delivering Prosperity Dialogues is being
25 to Saturday 27 January Prosperity through Continen- organized by the Africa Pros-
2024. tal Trade”, APD2023 aligned perity Network in collabora-
seamlessly with the AU Sum- tion with the African Conti-
The APD will be hosted by mit’s overarching theme. nental Free Trade Area
President Akufo-Addo under (AfCFTA) Secretariat, situated
the theme “Delivering Pros- Building on the success of in Accra.
perity in Africa: Produce, Add APD2023, APD2024 offers an
Value, Trade”, and will take invaluable opportunity to The other partners are the
place at Peduase Lodge in the engage the private and public United Nations Development
Aburi Hills. sectors, development finance Programme (UNDP) Africa,
Institutions, influential African Development Bank
The first edition of the APD in thought leaders, civil society (AfDB), African Export-Import
2023 resulted in the unani- actors, and youth organiza- Bank (Afreximbank), United
mous adoption of the Action tions in the process of syncing Nations Economic Forum for
Compact by the 36th Ordinary Africa’s economic priorities. Africa (UNECA), Africa Busi-
Session of the African Union in ness Council (AfBC),
February 2023. Africa-America Institute (AAI),
The Dialogues will also show- Arab Bank for Economic
This groundbreaking initiative case flagship projects and Development in Africa
forged a crucial partnership initiatives that are both scal- (BADEA), Africa Soft Power
and Ghana Investment
Promotion Centre (GIPC).

THE GHANA BUSINESS SUSTAINABILITY REPORT - Q4, 2023 65

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