Create environment fund - AGI

The Association of Ghana Industries (AGI) has called for the creation of a specialised fund ‘Environment Fund’ to address the plastic waste menace in the country.

“Such a fund should be available to companies who would establish waste re-cycling factories to access at interest rates of less than 10 percent,” Nana Owusu-Afari, President of AGI made this known in Accra during a Ghana Sustainability conference organised by the Association of Chartered Certified Accountants (ACCA).

In order to protect the environment, government last year announced a 20 percent environmental tax on plastic packaging materials and products, excluding bottled water which already attracts excise duty.

But the plastic manufacturing companies in the country disagreed, and questioned the rational for the 20 percent charge on plastic material into the national tax policy.
The conference, under the theme ‘Accounting for Sustainability’ was aimed at educating businesses and organisations realize the growing importance of sustainability.

Owusu-Afari explained that one of the key drivers of sustainability is the legal and regulatory requirements, unfortunately, institutions in the country have not been strong enough at enforcing the regulations and policies intended to protect the environment and consumers.

He added: “AGI is committed to ensuring that industry implements social and environmental strategies to contribute to the success of businesses that will survive and thrive in the long run.

“Admittedly, the poor ethical standards exhibited by some organisations bring to sharp focus the subject of business sustainability. Every activity that we carry out comes with wider social and environmental costs largely unaccounted for.”

Jamil Ampomah, ACCA Director for sub-Saharan Africa said: “Sustainable development is one of the pressing issues of today, posing significant challenges to society and global business. But in reality, few organizations anywhere are capable of achieving sustainability in the short or medium term.”

Ampomah revealed that more and more stock exchanges are asking for sustainability disclosure as part of their listing requirements, adding that “Sustainability issues and corporate social responsibility are now seen as integral parts of business values and strategy, rather than as an isolated function within a company. Accordingly, companies are recognising the benefits of sustainability reporting.”

He explained that in a landscape that is becoming more concerned about sustainability, companies that manage and reduce their exposure to risks associated with sustainability, whilst embracing a greater level of transparency and accountability will create opportunities that will give them a significant competitive advantage over their rivals.

“At the same time, companies face growing pressures from stakeholders, ranging from investors, regulatory authorities, consumers, employees and NGOs, who demand greater disclosure of business impacts on sustainability,” said Ampomah.

Ampomah added: “The benefits which businesses gain from disclosing more information set against the risks of failing to share that data should enable a business to quickly weigh up why they should produce sustainability reports.”

He said the Johannesburg Stock Exchange (JSE) has, for a number of years, encouraged disclosure through the requirement for listed companies to comply with the King Codes on Corporate Governance that has, since 2002, required integrated sustainability reporting.

As a result, from 2010, the JSE became the first exchange in the world to require listed companies to move towards integrated reporting, where it reports on both financial and non-financial results.

“With that kind of stakeholder driven pressure in Africa – organisations already need to be thinking in terms of best practice – not least because the financial investment community is a powerful driver of sustainability reporting," Ampomah remarked.