A recent survey by audit firm KPMG has revealed that nearly half of the companies listed on the Ghana Stock Exchange (GSE) are not complying with Environmental, Social, and Governance (ESG) reporting requirements. Specifically, 48% of these companies have yet to adopt ESG disclosures, highlighting a significant gap in sustainability practices.
Of the 52% of companies reporting on ESG, most rely on their parent companies’ sustainability reports, accounting for 75% of disclosures, while only 25% produce standalone ESG reports. Industries such as beverages, mobile telecommunications, and oil and gas show full compliance with ESG reporting standards. However, compliance rates remain low in mining and food production, with 67% and 33% of companies in these sectors reporting non-compliance, respectively.
The survey also found that only 45% of listed companies have integrated sustainability into their board responsibilities. Furthermore, less than half adhere to globally recognized reporting frameworks such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB). While 45% of companies include carbon reduction targets in their reports, signaling a growing focus on climate change, only 39% consider biodiversity loss a critical business risk.
To address these shortcomings, the report recommends implementing stricter ESG reporting guidelines, offering incentives for compliance, and investing in capacity-building initiatives. It also calls for enhanced materiality assessments, stronger board-level commitment to sustainability, and more robust stakeholder engagement to ensure ESG integration across all sectors.
This growing emphasis on ESG underscores the importance of aligning corporate strategies with global sustainability goals, particularly as investors and stakeholders increasingly prioritize environmental and social responsibility in business operations.
