SEC DG Urges Regulators, Stakeholders to Collaborate on ESG
Dr Emomotimi Agama, Director General Securities and Exchange Commission (SEC), has urged sector regulators, businesses, and stakeholders to collaborate effectively in the attainment of sustainable development goals.
In a statement on Sunday, Agama was quoted to have said this at the Regional Training and Capacity Building for securities regulatory authorities, held in Luanda, Angola recently. He explained that this was necessary as Nigeria intensified efforts on the adoption of the Environmental Social Governance (ESG) Principles.
According to him, 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 said.
Agama noted that ESG considerations in Nigeria were gaining traction as businesses and stakeholders recognised the importance of sustainable practice due to significant environmental challenges. According to him, these include: pollution, deforestation, erosion, flood, and waste management issues.
The director general added that companies are adopting practices such as renewable energy investments, water conservation, and eco-friendly manufacturing processes to mitigate environmental impact.
Agama mentioned that from the Social angle, companies are focusing on community engagement, labor rights, and diversity. He encouraged companies to promote fair labor practices and support local communities through Corporate Social Responsibility (CSR) 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 said.
The director-general 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.
He also said that it helps in terms of 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.
According to him, challenges to widespread ESG adoption in Africa include: limited awareness, capacity constraints and varying regulatory environments across countries. Agama further said that these challenges present opportunities for capacity building, knowledge sharing , and collaboration, among stakeholders to drive sustainable development.
He highlighted that SEC Nigeria issued rules and guidelines that listed companies must follow regarding corporate governance practices, including disclosure requirements related to sustainability and ESG factors.
According to him, SEC regulates the Nigerian capital market and plays a pivotal role in setting guidelines for sustainability disclosures. In 2021, SEC approved the guidelines on Sustainability Financial Principles for the Nigerian Capital Market.
“The objectives of the guidelines include stimulating a resilient, competitive, and sustainable capital market, and improving corporate governance practices. The guideline requires public interest/ listed entities to integrate ESG considerations into their operations and decision-making processes to avoid, minimise or offset negative impacts,” he stated.
According to Agama, the guidelines set out five principles for entities in the capital market, which include, ESG considerations, collaborative partnership and capacity building, and financing of priority sectors of the economy.
He also listed human rights, women’s economic empowerment, job creation, financial inclusion, and reporting and disclosures. CBN Meeting: Investment Firms See Up to 100bps Interest Rate Hike
