Stakeholders Urged to Collaborate on ESG Regulation
director-general of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama
As Nigeria continues to adopt Environmental Social Governance(ESG) Principles, sectorial regulators, businesses, and stakeholders have been urged to collaborate effectively in the attainment of sustainable development goals.
The director-general of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama stated this during the Regional Training and Capacity Building programme for securities regulatory authorities in Luanda, Angola recently.
ESG principles represent a set of criteria that socially conscious investors and stakeholders use to evaluate a company’s operations and impact on society and the environment.
The SEC DG stated that issuing clear guidelines, building capacity, and monitoring disclosures will ensure that the adoption of ESG principles translates into tangible benefits for the environment, society, and the economy.
“As Nigeria continues to develop economically, integrating ESG principles not only helps mitigate risks but also enhances long-term resilience and contributes to sustainable development goals.
“Through these efforts, Nigeria not only mitigates risks but also positions itself as a responsible and attractive destination for sustainable investments, contributing significantly to the global sustainable development agenda” he stated.
Agama said that ESG considerations in Nigeria are gaining traction as businesses and stakeholders recognize the importance of sustainable practice due to significant environmental challenges, including pollution, deforestation, erosion, flood and waste management issues adding that companies are adopting practices such as renewable energy investments, water conservation, and eco-friendly manufacturing processes to mitigate environmental impact.
“On the Social angle, companies are focusing on community engagement, labor rights, and diversity. Companies are encouraged to promote fair labor practices, support local communities through CSR (Corporate Social Responsibility) initiatives, and inclusive workplaces.
“Governance is crucial for transparency and accountability. Nigerian companies are improving board diversity, enhancing corporate governance structures, and adhering to regulatory requirements to build trust with stakeholders” he stressed.
The SEC DG said ESG initiatives play a crucial role in promoting sustainable development in Africa for several compelling reasons such as Environmental Conservation, Social Impact, Governance and Transparency, Resilience to Climate Change, and Attracting Responsible Investments and Compliance with International Standards.
He stated that, the current landscape of ESG in Africa is evolving rapidly, driven by various factors including regulatory developments, investor demand, and local initiatives and disclosed that challenges to widespread ESG adoption in Africa include: Limited awareness, Capacity constraints and Varying regulatory environments across countries.
Agama however said that, these challenges present opportunities for: Capacity building, Knowledge sharing andCollaboration among stakeholders to drive sustainable development.
The SEC boss said, the Securities and Exchange Commission (SEC), Nigeria issued rules and guidelines that listed companies must follow regarding corporate governance practices, including disclosure requirements related to sustainability and ESG factors.
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