Financial analysts urged to integrate ESG principles into analysis and decision-making

By Buertey Francis BORYOR

The Vice Chancellor of Ghana Communication Technology University (GCTU), Professor Emmanuel Ohene Afoakwa has urged Ghana’s financial analysts to incorporate environmental, social, and governance (ESG) considerations into their analysis and decision-making.

In a keynote speech read on his behalf at the 2024 Annual Conference of the Chartered Institute of Financial and Investment Analysts, Ghana (CIFIAG), in Accra, Mr. Afoakwa said, by integrating environmental considerations into financial analysis, financial analysts can contribute to data-driven insights that allow for smarter and more sustainable financial decisions.

“Doing this will ensure that environmental, social, and governance factors are considered alongside traditional financial metrics,” he added.

Also, he emphasised the impactful role financial analysts play in addressing some of the country’s most pressing environmental issues.

By evaluating the economic costs and benefits of implementing green policies, he said that they help businesses align their operations with sustainable practices that are both environmentally and economically sound.

“You play key role in balancing the need for economic development with environmental stewardship, ensuring that growth does not come at the expense of the environment.

“By identifying environmental risk, you help to protect the investments from the damaging effects of climate change and resource depletions. Your experience and expertise promote collaboration among stakeholders and ensure that diverse perspectives are considered in decision making,” he added.

Furthermore, the Vice Chancellor, who was also the event’s guest speaker, challenged the analysts to use their expertise to guide businesses, the government, and organizations towards solutions that not only promote economic growth but also protect and preserve the environment for future generations.

He added that with accurate, up-to-date information, financial analysts can better evaluate risks and opportunities, ensuring that environmental considerations are factored into every financial decision made.

Moreover, he said by ensuring transparent environmental reporting and financial disclosure, the analysts help create a system where businesses are held responsible for their environmental impact and are encouraged to adopt sustainable practices.

The President of CIFIAG, Dr. Daniel Amateye Anim-Prempeh, in an interview with the Business and Financial Times (B&FT) after the event said, the institute, during the year under review contributed immensely to the country’s economic development by providing expert advice and consultancy services to businesses, government agencies, and individuals.

Additionally, he said that, it had provided educational training, research, and CPD program through face to face and online platforms to enhance the skills of financial analysts and investment professionals.

“CIFIAG also entered into partnership agreement with GCTU to promote both professional and academic programs for our students to enhance their professional skills to cope with the changing job trend in Ghana,” he also said.

Furthermore, the financial Analyst cited economic growth, inflation, interest rates, financial inclusion, digitization, regulatory framework as well investment opportunities, as current trends in the country’s financial landscape requiring the Institutes attention.

He was grateful to CIFIAG Council and the secretariat for the wonderful works done during the year under review.

Meanwhile, Registrar of CIFIAG, Dr. Isaac Ntiamoah, in keynote address at the ceremony stressed that, the financial and investments analysts’ key role is to educate the public and investors to have confident in the country’s institutions in transacting official business.

“The recent daylight robbery in Adabraka, where a gold dealers lost an amount totaling GHC7.5million to the robbers, may have highlighted the need for our expertise,” he added.

Mr. Ntiamoah, while advising the Ghana Revenue Authority (G.R.A) to ensure mandatory reporting of gold transactions, and offer tax incentives for its sales, urged the PMMC and BoG to regulate the precious mineral’s trade, to ensure financial inclusion to generate revenue to support the country’s economy.

The event, themed, ‘The role of Analysts in trending environmental issues: Ghana in Focus’, also witnessed the induction ceremony of CIFIAG’s 41 newly registered members- the 9th cohort into the institute.

CIFIAG members who excelled in their respective fields of work were also recognised at the event. Among the award recipients was Dr. Anim-Prempeh, President of CIFIAG, who was honoured for his excellence in Financial and Economic Policy Analysis in 2024.

Also, Prof Emmanuel Ohene Afoakwa was the recipient of the Visionary Academic Leadership Award for this year. All other awardees were respectively recognised according to their work.

The Chief Executive Officer (CEO) of CIFIAG in a welcome speech on his behalf, also said the Institute stands as a Pan African beacon, empowering professionals dedicated to propelling economic growth through expert financial and investment advisory services.

Additionally, he urged the inductees to embrace, their responsibilities, strive for excellence and work to make the Institute a pride of place.

The 2024 Annual Conference and Induction Ceremony also featured a panel discussion, on the role of Financial Analysts in Sustainability, Environmental, Social and Governance (SESG) reporting.

About CIFIAG

Chartered Institute of Financial and Investment Analysts is a Pan African Finance and Investment Professional body whose members champions the African investment, economic and development growth by providing expert investment and Finance advisory services to the indigenous African businesses who have the zeal to work and change the economic destiny.

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