Micro- finance Institutions under Uganda’s Tier 4 financial sector have been cautioned on funding projects that affect ecosystems.
David Kaweesi the Investment manager Financial Services development at Agricultural Business Initiative (aBi) says that this is the time financial institutions should come in by adding their efforts on environment conservation.
Kaweesi says the financial sector should prepare for a major shift in lending priorities and adopt the Environment, Social, and Governance (ESG) business model.
This move emphasizes climate change concerns, social justice, and ethical business practices to ensure continued growth and resilience.
Kaweesi said this today at the opening of three day training workshop of top leaders of tier 4 microfinance institutions from Ankole and Kigezi Sub regions in Mbarara city organised by Agricultural Business Initiative (aBi) in partnership with The Uganda Institute of Banking and Financial Services (UIBFS).
The adoption of ESG is part of a broader Green Financing Agenda aimed at promoting responsible, inclusive, and environmentally conscious economic development.
He noted that the ESG movement must start with institutions’ leadership and once they understand it, they can cascade this knowledge to their teams and ensure full institutional buy-in.
He said that when leaders of these institutions understand the impact of environmental degradation to the extent of customers’ business, it will help in preserving the environment through doing due diligence in loan assessment.
BYTE…………………..KAWEESI LUG/ENG
