The Independent Uganda: You get the Truth we Pay the Price
COMMENT | ICRA RATING | As the global focus on sustainability and corporate responsibility continues to grow, banking institutions must adapt to meet the evolving expectations of customers, investors, and regulators.
In today’s rapidly changing business landscape by embracing ESG principles, banks can mitigate risks associated with environmental, social, and governance issues that seize opportunities to create positive impact and drive positive change in the financial industry.
Bank of Uganda has recently launched the ESG Framework for the banking industry with a mission “To promote price stability and a sound financial system in support of socio-economic transformation in Uganda.” This change reflects the understanding that “beyond the price and financial stability”, ICRA must support socio-economic transformation with the Bank of Uganda and align with the Uganda National Vision 2040.
ICRA Rating is an independent international credit rating agency that specializes in Credit Rating Reports and ESG Rating Reports. They have a specialized team that’s focused on ESG.
By integrating ESG principles into their operations, banks, NBFIs, and corporates in Uganda can effectively manage risks, enhance their reputation, and attract more investors who are increasingly looking for socially responsible investment opportunities.
Environmental factors such as climate change and resource scarcity are becoming more pressing issues globally, including in Uganda. Social factors help banks evaluate their relationships with stakeholders, including customers, employees, and the communities they serve.
Governance factors ensure that banks operate ethically and transparently, which builds trust among investors and customers.
Moreover, integrating ESG considerations into their business practices can lead to cost savings, improved efficiency, and innovation, ultimately driving sustainable growth. Banks prioritizing ESG factors are better equipped to manage risks, attract investors increasingly looking for socially responsible investments, and enhance their reputation in the market.
ICRA is committed to contributing to the Uganda Financial Ecosystem by collaborating with various associations and financial institutions in Uganda. Via its website www.icraratingug.com ICRA executives can provide valuable insights to help Ugandan banks navigate the process with confidence and expertise.
As a gesture of goodwill, ICRA is offering a free initial assessment to all Banks and other NBFIs.
This assessment will help them to evaluate their ESG gaps and align themselves with international standards.
****
SOURCE: International Credit Rating Agency
