Why corporate leadership can no longer be silent on sustainability

For those who grew up in the 1990s, around the politics of the day and the economy, buzzwords like global warming, climate change, and the ozone layer – even chlorofluorocarbons (CFCs) – began popping up. Today, the global spotlight shines even brighter on climate action.

In Ghana, we find ourselves at a pivotal moment, having to confront the pressing reality of environmental sustainability. Beyond being a challenge for governments or civil society, it is a call to action for corporate leaders.

For too long, CEOs and business executives have left this all-important matter to the politicians and scientists. However, there is great untapped potential in the corporate world to ignite Ghana’s sustainability revolution. As leaders, we have the power and the responsibility to effect change.

Ghana’s Unique Opportunity

Sustainability has become a top priority for policymakers and business leaders alike. Around the world, countries are making bold strides toward a greener future. The European Union’s Green Deal has sustainability at its heart, while in the United States, the Inflation Reduction Act includes policies that probably make up the country’s most significant action on clean energy and climate change. Closer to home, Kenya is emerging as a leader in renewable energy, with over 85% of its electricity coming from renewable sources.

Ghana has the potential to be a leader in Africa in sustainable innovation. With a growing middle class, vast natural resources, and a youthful, tech-savvy population, we are well-positioned to shape a new era of environmentally conscious business practices. Yet, despite these advantages, we lag behind in integrating sustainability into our corporate strategies.

The Business Case for Sustainability

The perception that sustainability is a burden to business is outdated. In fact, studies globally show that companies that prioritise environmental, social, and governance (ESG) practices are not only more resilient but also more profitable in the long term.

For instance, Unilever’s Sustainable Living Plan, which aimed to decouple growth from environmental impact, resulted in a 300% increase in its stock price over a decade. Ghanaian companies can and must replicate these successes by embracing sustainable operations and aligning with global goals. This is because companies that fail to address sustainability risks not only face reputational damage but also huge financial consequences.

The influence the media has contributed to environmental awareness means that in today’s market, consumers are increasingly demanding environmentally responsible products, and investors are funnelling capital into green businesses. Ghanaian firms that proactively adopt sustainable practices can tap into these growing markets and secure their place in the future economy.

A Paradigm Shift in Ghana

Ghana has already laid the groundwork for sustainable growth. Initiatives like the Renewable Energy Master Plan ($5.6 billion invested between 2019 and 2030) and the Ghana Green Climate Fund ($128.2 million total financing) have set ambitious targets for the energy and industrial sectors.

One glaring area for corporate intervention is waste management. Ghana generates over 1 million metric tonnes of plastic waste annually, with only 5% being recycled. This is an environmental disaster but is also a missed business opportunity. Companies can invest in innovative waste-to-energy solutions, recycling technologies, and circular economy models to turn waste into resources.

Additionally, the agriculture sector, which contributes about 20% of Ghana’s GDP and employs over 40% of the population, is ripe for sustainable transformation. Adopting climate-smart agriculture practices will mitigate the effects of climate change while boosting yields and improve food security. Nestlé’s work with cocoa farmers to improve sustainable sourcing and reduce deforestation is an excellent model for other agribusinesses to follow.

The Role of the Corporate Sector in Ghana’s Sustainability Revolution

As Ghana’s business community, we must ask ourselves tough questions: How can we reduce our carbon footprint? How can we shift to renewable energy sources? How can we create value while protecting the environment for future generations?

The answers lie in collaboration. Ghanaian CEOs must work alongside policymakers, civil society, and academia to drive systemic change. This national discourse on sustainability will ensure that Ghanaian businesses remain competitive in the global economy.

Sustainability cannot be an afterthought or relegated to corporate social responsibility (CSR) departments. It must be embedded in the core of business strategy. As corporate leaders, we must lead by example and ensure that sustainability isn’t just theorised in our core values and operational strategies but rather in action by walking the talk. This means rethinking supply chains, investing in clean technologies, fostering innovation, and deploying CEO/corporate activism causes like sustainability living, carpooling and the likes.

Tullow Ghana, as an example, has partnered with the Ghana Forestry Commission to implement a programme that will deliver certified carbon offsets in line with their 2030 Net Zero roadmap. This is commendable.

Ghanaian companies must lead the way in decarbonizing industries such as construction, manufacturing, and transportation. The transition to renewable energy is crucial. With our abundant sunshine and wind, there is no reason why we cannot emulate South Africa’s rapid growth in renewables. It is critical that the private sector takes leadership in scaling up these efforts, especially through public-private partnerships that leverage both investment and expertise.

A Future-Ready Ghana

As corporate leaders, the choices we make today will shape the Ghana of tomorrow. The time for corporate dormancy on sustainability is over. The consequences of our collective failure to address these challenges are too severe to ignore.

As Kofi Annan famously stated, “Twenty-five years ago people could be excused for not knowing much, or doing much, about climate change. Now we have no excuse.” It is therefore binding upon us, corporate leaders, to step up and take bold proactive actions by embedding sustainability into the DNA of our businesses, we can ensure that our economic growth does not come at the expense of the environment or future generations. The global market is moving towards a greener future, and Ghana cannot afford to be left behind.

The time for action is now!

The writer is an International Communications Consultant with over a decade of experience in integrated marketing communications across diverse sectors, including technology, banking, fintech, mining, natural resources, FMCG, insurance, and aviation.

Skilled in developing and executing strategic communications plans, building impactful partnerships, managing media relations, and nurturing key stakeholder relationships. Highly proficient in issue and crisis management, as well as in crafting effective social and digital marketing strategies.