Embrace Sustainability Reporting to Strengthen Long-Term Growth – Deloitte
Insurance companies in Ghana have been strongly encouraged to adopt sustainability reporting standards under the International Financial Reporting Standards (IFRS) Sustainability Disclosure framework in order to remain competitive and resilient in an evolving global business environment.
This call was made by the Partner for Assurance Services at Deloitte Ghana, Dr. Kwabena Situ, during a stakeholder forum organised by the National Insurance Commission (NIC) on Environmental, Social and Governance (ESG) reporting for the insurance industry.
Addressing participants at the event, Dr. Situ stressed that sustainability reporting is no longer optional for businesses seeking long-term relevance and growth. According to him, insurance firms that fail to embrace sustainability disclosure standards risk exposing their businesses to operational and underwriting challenges in the future.
He explained that sustainability reporting under the IFRS framework provides organisations with the opportunity to demonstrate transparency, accountability and their commitment to responsible business practices. This, he noted, is becoming increasingly important to investors, regulators, customers and other stakeholders across the world.
Dr. Situ further stated that adopting sustainability reporting standards can help insurance companies improve risk management, strengthen stakeholder confidence and create long-term value for shareholders and society.
A major focus of his presentation was the importance of conducting materiality assessments. He noted that insurance companies must identify and prioritise the ESG issues that are most relevant to their operations, stakeholders and long-term business strategy.
According to him, firms should not limit their assessment to only financial materiality but must also consider impact materiality as required under the NIC guidelines. He explained that impact materiality focuses on how a company’s operations affect the environment, society and governance structures, rather than only how sustainability issues impact the company financially.
“Per the NIC guidelines, there is the need to do an impact materiality assessment and not just financial materiality assessment. In doing the impact assessment, organisations need to have a clear ESG vision that guides their reporting and sustainability strategy,” he said.
Dr. Situ emphasised that effective ESG reporting must be supported by strong corporate governance structures and leadership commitment. He observed that sustainability initiatives often fail to achieve meaningful results when there is no strategic support from top management and boards of directors.
He explained that companies that successfully integrate ESG principles into their governance systems are more likely to improve decision-making processes, strengthen institutional reputation and build resilience against emerging risks.
The forum also highlighted the growing significance of the new IFRS Sustainability Disclosure Standards, IFRS S1 and IFRS S2, which seek to improve the quality, consistency and comparability of sustainability-related disclosures globally.
Participants at the workshop discussed practical approaches to implementing the standards, including stakeholder engagement, identifying ESG risks and opportunities and aligning sustainability objectives with broader business strategies.
Industry players at the event acknowledged that sustainability reporting is becoming an essential component of modern business operations, particularly in sectors such as insurance where risk assessment and long-term planning are central to operations.
The forum formed part of broader efforts by the National Insurance Commission to promote responsible business practices and strengthen ESG compliance within Ghana’s insurance industry.
