Corporate leaders and policy experts have urged Ugandan businesses to begin preparing for mandatory Environmental, Social and Governance (ESG) reporting requirements that will take effect for financial institutions in January 2027.
The call was made during the second annual East Africa ESG Summit hosted by Capital One Group (COG) on June 11, 2026.
Held virtually under the theme, “ESG as the Capital of Sustainability: From Commitment to Delivery”, the summit brought together board members, chief financial officers, operations directors, public relations professionals and policymakers from across the region.
The discussions came at a crucial time following confirmation that the Bank of Uganda will introduce mandatory ESG reporting guidelines for all financial institutions from January 2027.
The new framework is expected to transform sustainability reporting from a voluntary corporate responsibility initiative into a regulatory requirement.
Experts at the summit said the changes will require financial institutions to go beyond traditional financial reporting by incorporating climate risks, social impact and corporate governance considerations into their decision-making processes.
Because banks and other lenders control access to capital, participants noted that the new requirements will also affect businesses seeking financing.
Agricultural exporters, manufacturers and small and medium-sized enterprises (SMEs) could face stricter lending conditions if they fail to provide verifiable sustainability information.
Businesses that do not meet ESG expectations may face higher borrowing costs or struggle to access credit altogether.
The development reflects a wider trend across Africa, where governments and regulators are increasingly introducing sustainability reporting requirements.
South Africa, Zimbabwe, Egypt and Tunisia already require sustainability disclosures for listed and public entities. Ghana and Nigeria have adopted International Sustainability Standards Board (ISSB) standards, while Nigeria plans to extend compliance requirements to large companies by 2028.
In East Africa, Tanzania introduced mandatory climate-related disclosures in 2025, while Kenya began its first mandatory ESG reporting cycle for Public Interest Entities in January 2026.
Elvis Moenga, Manager for Standards and Technical Services at the Institute of Certified Public Accountants of Kenya (ICPAK), said businesses should not delay preparations.
“With mandatory reporting for Public Interest Entities starting in 2027, companies cannot afford to wait,” Moenga said.
He explained that guidance issued jointly by ICPAK and the Nairobi Securities Exchange requires listed companies to carry out Sustainability Reporting Readiness Assessments.
These assessments evaluate existing data systems, governance structures and resource gaps against key ESG pillars, including governance, strategy, risk management, and performance metrics.
According to organisers, the summit was designed to help corporate leaders understand the practical implications of ESG compliance and sustainability reporting.
Paul Mwirigi Muriungi, Managing Director and Head of Strategy at COG EA Ltd, said ESG has become a business necessity rather than a public relations exercise.
“ESG is no longer a matter of corporate goodwill or public relations. It is a prerequisite for accessing capital, winning contracts, attracting investors, remaining competitive and remaining relevant,” Muriungi said.
He added that many organisations still misunderstand the concept of ESG despite the approaching regulatory changes.
“The question is no longer whether ESG reporting will become mandatory. The question is whether Ugandan businesses will use the remaining transition period to prepare,” he said.
The summit also addressed concerns about greenwashing, where companies make misleading claims about their environmental or social performance.
Participants emphasised the need for transparency and accurate reporting to ensure businesses can withstand both regulatory scrutiny and public accountability.
Ernest Ssekisonge, Managing Director of Kasi Insight, urged stakeholders to develop sustainability frameworks that reflect local realities.
“We cannot simply adopt Western ESG frameworks and apply them directly here. The operating environment is different. Businesses, policymakers and practitioners must work together to create ESG frameworks that address Uganda’s unique circumstances and needs,” Ssekisonge said.
Participants received practical guidance on data collection, governance reforms and sustainability reporting systems that can help organisations remain competitive and creditworthy under the new regulatory environment.
The summit, which focuses on ESG awareness, education and practical implementation, was initially planned as a physical event. However, organisers shifted it online because of Ebola-related concerns that affected travel arrangements for speakers from Uganda and Kenya.
Despite the change, organisers described the event as successful, attracting more than 70 participants, most of whom were professionals working in ESG-related fields.
The event was supported by Radio One FM 90, Kasi Insight and ICPAK.
Organisers also announced that the winners of the ESG Awards will be unveiled on July 16 during a private engagement involving partners and sponsors.
In addition, the newly established ESG Club is expected to sustain discussions on sustainability through regular engagements and knowledge-sharing activities throughout the year, beyond the annual summit.
