Assessing the implementation of ESG (environmental, social, governance) practices at BRAC Uganda bank ltd

Abstract

Uganda Bank Ltd. While ESG has become a central framework for assessing organizational sustainability and accountability in the banking sector, gaps often exist between stated ESG commitments and their actual implementation at the operational level. This research sought to assess the extent to which ESG practices are implemented at BRAC Uganda Bank Ltd, challenges and enablers affecting implementation, and to generate practical recommendations for strengthening ESG integration. The study adopted a quantitative, descriptive cross-sectional research design, using a structured, self-administered questionnaire as the sole data collection instrument. A sample of 60 respondents was drawn using stratified random sampling, proportionally allocated across the four stakeholder strata, with majority of the sample concentrated among operational staff and customers who directly experience and implement ESG practices. The questionnaire measured ESG implementation across environmental, social and governance dimensions using 5-point Likert scales, alongside questions capturing perceived implementation challenges, enablers and respondents' overall assessment of ESG integration. Data analyzed using SPSS, employing descriptive statistics and reliability testing (Cronbach's Alpha) to ensure the validity and consistency of findings. The findings revealed that the bank has made considerable progress in integrating ESG principles into its operational and strategic activities. The findings further revealed the challenges related to limited benchmarking of ESG practices against industry peers, inadequate recognition of community relationships as a driver of ESG performance, inconsistent visibility of leadership commitment, and the need for stronger integration of ESG considerations into organizational systems and decision-making processes.The study concluded that BRAC Uganda Bank Ltd. has made considerable progress in integrating ESG practices within its organizational operations. The bank’s ESG implementation is reflected through its social mission, responsible financial services, governance structures, stakeholder engagement, and efforts to incorporate sustainability considerations into decision-making processes. The study recommended that BRAC Uganda Bank Ltd. establish stronger ESG governance structures by creating a dedicated ESG or sustainability unit responsible for coordinating, monitoring, and reporting ESG activities.