Absa Bank Botswana Managing Director Keabetswe Pheko has called on corporate leaders to integrate Environmental, Social, and Governance (ESG) principles into their business strategies, emphasising that ESG is no longer optional but a crucial factor for business resilience, long-term value creation, and societal impact.
Speaking at the recently held ESG Board and Corporate Roundtable, Pheko highlighted the growing influence of climate change, regulatory developments, and evolving investor expectations on the corporate landscape. She noted that global businesses are placing ESG at the center of decision-making, and Botswana cannot afford to be left behind.
โAs custodians of governance, our responsibility extends beyond financial performance. True ESG leadership is about ensuring resilient and sustainable business models, ethical leadership, regulatory compliance, and a corporate culture that prioritises diversity, equity, and inclusion while addressing climate change and social impact,โ she stated.
Pheko stressed that ESG governance must start at the board level, urging board members to set the tone for ESG integration, enforce accountability, align with stakeholder expectations, and drive innovation. She also called on executives to embed ESG into corporate strategy, risk management, and performance metrics while fostering cross-functional collaboration.
While acknowledging the importance of regulatory compliance, Pheko emphasized that the real value of ESG lies in its potential to drive business growth and innovation. She pointed to the banking sectorโs increasing focus on sustainable finance, with institutions embedding ESG into lending decisions and supporting green initiatives.
Absa Bank Botswana has taken a leadership role in sustainable finance, becoming the first bank in the country to list a sustainable bond on the Botswana Stock Exchange (BSE). The bond, initially valued at P47.4 million in December 2023, received an additional issuance of P32.6 million in February 2024, bringing the total to P80 million under the bankโs Sustainable Finance Issuance Framework.
โThis framework ensures we continue meeting our sustainable finance ambitions. It provides funding for businesses looking to implement climate mitigation and adaptation strategies,โ she said.
Pheko also touched on Absaโs commitment to financial inclusion, revealing that the bank has extended P1.2 billion in funding to small and medium enterprises (SMEs), supporting the Citizen Economic Empowerment Programme (CEEP).
From a governance perspective, she highlighted Absaโs commitment to transparency, noting that the bank is among the few organisations in the country that publish an integrated report evaluating ESG-related performance. Beyond its internal ESG efforts, Absa is actively shaping public policy and regulatory frameworks, positioning itself as a strategic thought leader in sustainable business practices.
โThis is why Absa is part of this dialogue todayโbecause we believe in shaping a sustainable future, not just for our bank, but for Botswana as a whole,โ she said.
Pheko urged corporate leaders to view ESG as a fundamental leadership mandate rather than a passing trend, noting that Botswana is well-positioned to lead in sustainable business practices.
The ESG Board and Corporate Roundtable, organised by SustainaBiz Consulting, brought together business leaders, regulators, and industry experts to discuss the future of ESG governance in Botswana.
SustainaBiz Consulting founder and convenor of the ESG Board and Corporate Roundtable, Onneetse Ndadi, underscored the critical role that boards and executive teams play in embedding ESG into corporate DNA. She emphasized that ESG is not just a compliance exercise but a fundamental driver of long-term value creation, resilience, and ethical leadership.
โThis roundtable is designed not just to discuss ESG principles but to translate them into actionable strategies that enhance governance, risk management, and sustainable business practices,โ Ndadi stated.
She highlighted SustainaBiz Consultingโs pioneering role in ESG capacity building and advisory services, noting that the firm has been at the forefront of industry-first initiatives in Botswana.
โWe are the first company in Botswana to offer HRDC-accredited ESG training programs. We have also pioneered other innovative industry-relevant solutions, such as the 2024 Botswana Diversity, Equity, and Inclusion Training Summit and the game-changing ESG Strategy Bootcamp, which equips practitioners with the competencies to develop ESG strategies and frameworks, integrating them with risk management frameworks and corporate strategies,โ Ndadi highlighted.
