The Ghana Investment Support Programme (GHISP) has launched a new resource designed as an accessible andpractical tool to help fund managers, transaction advisors and SMEs better meet investors’ requirements.
The growing role of ESG in investment readiness
Environmental, social and governance (ESG) is a framework used to measure a company’s sustainability and societal impact. In Ghana, as elsewhere, ESG has seen increasing relevance as it relates to SME investment readiness, because it helps potential investors understand how a company manages related risks and opportunities.
The challenge that many SMEs face is to fully understand what areas of operation fall under ESG, what compliance measures to implement, and how. What is more, external ESG support may be beyond the financial means for many companies.
A free resource for companies, funds and advisors
The GhISP ESG Toolkit for SMEs addresses these priorities and challenges by offering a practical starting point for companies to assess their ESG maturity levels. It also allows fund managers to quickly assess pipeline companies. Transaction advisors and ESG specialists benefit from an internationally aligned diagnostic framework that improves consistency and quality of ESG advisory services to Ghanaian SMEs.
“I love this tool! It’s one of the simplest, most structured, and practical ESG self-assessment tools I’ve come across. I will definitely use this to assess the ESG maturity levels for our pipeline companies going forward.” Kyerewaa Osei Mensah, Environmental, Social and Impact Manager, GIP Ghana
The Toolkit consists of three vital resources:
1) The Online ESG Health Check: A user-friendly online self-assessment that guides the user through seven key ESG pillars; generates tailored action plans for each pillar; and calculates an overall ESG maturity score. Ideal for SMEs new to ESG or curious about where they stand.
2) The ESG Health Check Tool – Excel version: For an ESG deep-dive, the Excel self-assessment covers the same seven pillars; calculates pillar scores and an overall ESG maturity score; and generates a tailored compliance roadmap. This offline version allows for re-visiting and updating as and when recommended actions are implemented. Best for ESG-experienced SMEs, transaction advisers and fund manager.
3) The Environmental and Social Management System (ESMS) Manual: The accompanying manual template provides the corresponding governance, policy and procedural framework in which the actions identified and prioritised in the Health Check Tool are managed and continuously improved. It provides step-by-step guidance on establishing an ESMS, outlining key governance structures, roles and responsibilities, and reporting frameworks.
The complete ESG Toolkit can be downloaded and accessed on the GhISP website resources page. Links to individual resources:
• Online ESG Health Check: https://ghisp.org/esg-health-check
• Excel ESG Health Check Tool: https://ghisp.org/esg-health-check-tool-download
• ESMS Manual template: https://ghisp.org/esms-manual-word-download
As a package, the ESG Health Check helps find the gaps — the ESMS closes them!
