Adopt environmental, social and governance factors in power sector

Companies world over are making significant strides in embracing Environmental, Social, and Governance (ESG) principles in their operations in recent years, with a focus on sustainability at the forefront.

This shift towards ESG has been driven by the recognition that companies that prioritise ESG factors are more likely to be resilient, sustainable, and better equipped to meet the needs of society in which they operate without compromising the future generation to meet theirs.

Firstly, ESG-focused companies are more likely to be seen as responsible and trustworthy by customers, investors, and other stakeholders.

Secondly, companies that prioritise ESG factors are more likely to be sustainable in the long-term, as they are better equipped to manage risks and adapt to changing market conditions.

ESG practices can help to drive innovation and improve business performance, leading to increased competitiveness and profitability.

The electricity sector in Uganda is making significant progress in embracing ESG principles, by prioritising sustainability, social responsibility, and good governance, In the electricity sector, electricity distribution company Umeme Limited has set the pace in adoption and embedding of ESG principles in its operations.

The utility is positioning itself for long-term success and helping to drive positive change in the sector. The adoption of ESG practices by Umeme Limited will go a long way in strengthening its business relationships with key stakeholders like customers, public, investors and partners.

 Umeme has made a commitment to sustainability and has taken steps to integrate ESG principles into its operations and reporting. In line with the Global Reporting Initiative (GRI) standards, aligned to the energy sector we are streamlining our operations to ensure that we quantify our impact but also provide an in-depth analysis of this impact on the environment, society, and economy.

  With a dedicated ESG Board Committee in place --the  Utility now boosts of a fully pledged  ESG function to support the development and execution of the ESG strategy, recognising that sustainability is critical to the long-term success of the company and the sector as a whole.

The power distributor’s ESG efforts are focused on three main pillars: environmental sustainability, social responsibility, and good governance. Environment sustainability – climate change, biodiversity, Green House Gas Emissions, Social Responsibility- Human Capital eg Health and Safety of Staff and Public, Inclusion and Diversity, Community Shared Value,etc.

Good Governance -Ethics and Integrity, Anticorruption and Bribery, Executive pay, Tax transparency, among others.

For example, Umeme has set a target to reduce its carbon emissions by 10 percent by 2025 and has made significant investments in renewable energy sources, including adopting electric bikes and forklifts in our fleet. Additionally, the company has implemented community based initiatives to support communities and promote sustainable development, such as community and school safety awareness programmes, tree growing through Its U Green Campaign, formation of School Safety Clubs ,Employee Community Initiatives in the areas we operate.

In conclusion, the journey towards a sustainability in the electricity sector in Uganda is an important step towards creating a sustainable future. 

We have joined companies that are leading the way in promoting ESG principles and setting an example for others to follow. By quantifying its impact, Umeme is able to make meaningful changes and contribute to a more sustainable future for all.

Isaac Katewanga, Head ESG and Sustainability – Umeme Limited