CONTEXT 

Ghana’s private sector faces a growing climate challenge. The IPCC and the World Bank have documented the scale of climate exposure facing businesses in sub-Saharan Africa, and Ghana is no exception. Power supply disruptions, drought, flooding, and rising operational costs are not projected future risks; they are present conditions shaping the daily decisions of business owners across the country. 

At the same time, the global and regional policy environment around ESG and climate action is shifting at a fast pace. Thirty-eight jurisdictions now mandate climate disclosure. Sustainable investment has exceeded $35.3 trillion globally, more than a third of all professionally managed assets. Green finance flows are projected to grow from $4.5 trillion to $9 trillion annually by 2030. Businesses that cannot demonstrate credible climate and sustainability practices face growing risk of exclusion from international supply chains, capital markets, and procurement processes that are rapidly formalising ESG requirements. 

Ghana has responded with an increasingly ambitious policy architecture. The country’s Nationally Determined Contributions commit to a 30% reduction in emissions below business-as-usual levels by 2030. The Bank of Ghana’s Sustainable Banking Principles require Tier-1 financial institutions to conduct climate stress testing. The Securities and Exchange Commission’s 2024 ESG Disclosure Guidelines mandate Scope 1 and 2 emissions reporting for listed companies. The Ghana Sustainable Enterprise Certification offers tax rebates of 15–25% for compliant firms. Yet a persistent and well-documented gap separates these national ambitions from the reality facing most businesses, particularly micro and small enterprises, which make up over 90% of Ghana’s business population. An estimated 78% of Ghanaian SMEs lack the technical expertise to conduct basic emissions accounting. Seventeen different ESG reporting templates exist across government ministries. Commercial banks typically require collateral worth 150% of loan amounts, excluding approximately 40% of bankable green projects. Despite $2.1 billion mobilised for climate-related projects in Ghana since 2022, the vast majority has flowed to large firms and listed companies, bypassing the businesses that need it most  

Small and medium-scale enterprises (SMEs) form the backbone of Ghana’s economy; however, they are increasingly exposed to climate-related risks such as power supply disruptions, rising operational costs, flooding, drought, and supply chain instability. These risks affect business continuity, productivity, and long-term growth. As climate impacts intensify, many SMEs remain vulnerable because they often lack the financial resources, technical knowledge, and institutional support needed to adapt effectively (IPCC, 2023; World Bank, 2022).   

PROJECT OBJECTIVES 

Overall goal 

To generate and apply evidence on effective pathways for integrating climate action and ESG frameworks into SMEs in Ghana, and to support businesses to move from climate awareness to sustained, practical climate action through structured capacity building, technical assistance, and climate finance readiness support. 

Specific objectives 

• To examine the key climate-related risks affecting commercial enterprises in Ghana and assess how businesses across different sectors currently respond to these risks. 
• To assess regional variations in business awareness, understanding, and integration of climate change adaptation and ESG principles. 
• To evaluate climate finance readiness support mechanisms and their effectiveness in addressing financial barriers that limit SMEs’ adoption of climate-responsive actions. 
• To assess the climate-action readiness of women-led and youth-led enterprises and identify the factors that enable or constrain their participation. 
• To examine how applied ESG and climate capacity-building interventions influence SMEs’ operational practices, adaptive capacity, and business resilience. 
• To assess the role of embedded technical assistance in supporting SMEs to design, adopt, and implement climate-responsive measures. 
• To generate policy-relevant evidence to inform national and regional strategies aimed at strengthening SME climate resilience, green enterprise development, and ESG integration in Ghana. 

PROJECT ACTIVITIES 

• Conducted a global desktop review on climate action, ESG frameworks, and private sector engagement.  

• Reviewed Ghana's climate policies, ESG landscape, and private sector initiatives.  

• Organized a stakeholder webinar on "The State of ESG in Ghana" to validate findings and gather expert inputs.  

• Developed a structured questionnaire based on the desktop review and stakeholder consultations.  

• Conducted a pilot study involving 36 Young Green Entrepreneurs to test and refine the questionnaire.  

• Administered the survey to GNCCI member businesses across Ghana.  

• Collected responses from 391 businesses representing 11 GNCCI regional chapters.  

• Cleaned, validated, and analysed the survey data using descriptive and inferential statistical techniques.  

• Held a consultative meeting with GNCCI to validate the research findings and obtain stakeholder feedback.  

• Developed a project proposal based on the research findings and identified business needs.  

• Published articles, blogs, and knowledge products to raise awareness on climate action and ESG integration.  

• Prepared the final technical report documenting the methodology, findings, conclusions, recommendations, and future implementation pathways. 

PROJECT OUTPUTS 

• Milestones
  • ICACE Desktop Review (Global Overview)
  • Ghanaian Context Review on Climate Action and ESG
  • Pilot study of Young Green Entrepreneurs in Ghana
  • Webinar on Climate Action and Ghana's Road to Resilience
  • ICACE Desktop Project Assessment tool
  • GNCCI Data Collection
  • GNCCI Data Analysis
  • ICACE Project Proposal
  • ICACE Project Report
• Articles
  • CDKN, GNCCI partner to integrate climate action into business practices
  • Why the Paris Agreement Matters for Ghanaian Businesses
  • How is ESG doing globally? Successes, gaps, and lessons for Africa
  • Origins, evolution, and its surging global influence of ESG
  • ICACE Empowers Ghana’s Private Sector to Integrate Climate Action and ESG for Resilient Growth
  • Understanding the National Determined Contributions (NDCs) and National Adaptation Plans (NAPs), and their Implications for the Private Sector
  • The ICACE Project: Strengthening Business Resilience Through Climate Action and ESG in Ghana

CONTACT

For more information, please contact: 

Prince Ansah, CDKN Ghana Country Engagement Lead: prince@southsouthnorth.org or on LinkedIn: https://www.linkedin.com/in/prince-ansah/

Valerie Kplorm Nutakor, CDKN Ghana Country Programme Coordinator: valerie@southsouthnorth.org or on LinkedIn: https://www.linkedin.com/in/valerie-kplorm-aku-nutakor-21-/