The chief executive of the Nigerian Exchange Regulation Limited, Ms. Tinuade Awe, has urged more businesses to incorporate environmental, social, and governance into their overall business plans in order to draw in sustainable investors.
According to Business Post, she emphasized the significance of listed firms’ ESG reporting being in line with their business goals, data management procedures, and governance practices.
Speaking at a session on ESG Activity Reporting and Sustainable Investing at the Africa Social Impact Summit 2023, hosted by Sterling One Foundation and the United Nations Nigeria in Lagos, she highlighted the need for companies interested in ESG reporting to develop a clear ESG strategy that is in line with their corporate objectives.
She urged these businesses to seek professional advice and consistently track ESG-related data in order to support correct reporting. She claims that this strategy is essential for promoting the early adoption of ESG reporting by NGX-listed companies.
Ms. Awe further stressed that organizations that successfully incorporate ESG reporting into their operational framework are regarded as responsible corporate citizens because they are better able to reduce operational risks, draw sustainable investors, and create long-term value.
She estimates that 50% of NGX-listed businesses have published separate sustainability reports or have fully integrated sustainability reporting into their annual reports.
She emphasized that the use of ESG reporting will improve Nigeria’s reputation and performance on the global ESG stage. She urged businesses to support this program since it will help Nigeria meet its goal of becoming carbon-neutral by 2060.
When asked about possible sanctions for businesses that do not use ESG reporting, Ms. Awe mentioned that NGX has sustainability disclosure requirements that went into force in 2019.
The International Sustainability Standards Board Standards and the shifting nature of international ESG standards, she said, would also be taken into consideration when reviewing these recommendations.
Ms. Awe emphasized the need for strategic engagement between public and private sector stakeholders in Nigeria given the fast-changing global ESG landscape, as this would enable them to embrace their shared responsibility in building a sustainable future.
She pointed out that ESG reporting aligns with well-established guidance frameworks like the Task Force on Climate-related Financial Disclosures recommendations and the recently released International Sustainability Standards Board S1 and S2 standards, in addition to increasing awareness of global trends in climate-related reporting.
