Awe Urges Corporate Firms to Adopt Sound Sustainability Reporting

By Aduragbemi Omiyale

Corporate organisations operating in the country have been charged by the chief executive of the Nigerian Exchange (NGX) Regulation Limited, Ms Tinuade Awe, to adopt sound sustainability reporting as it would help investment decisions of investors.

At an event held on Tuesday themed Unlocking ESG for Boards from Strategy to Disclosure, Ms Awe said investors have the right to know the impact of businesses on the environment, especially at a time people are conscious of it.

She encouraged companies to adopt best practices in their disclosure on Environmental, Social, and Governance (ESG) issues by ensuring that their sustainability reports capture relevant sustainability disclosures that are relevant to their stakeholders.

“Our world today is facing major sustainability challenges including inequality, overpopulation, climate change, and several environmental risks. By recognizing that capital allocation makes a real impact on the environment and society at large, investors can reap sustainable long-term investment decisions through investments in ESG-themed investments.

“Furthermore, adopting an ESG-lens in our approach to investment is critical for investors to identify businesses that implement a forward-looking approach to managing long-term risks and leveraging opportunities that ensure long-term ensure economic, environmental, and social responsibility,” the NGX Regulation CEO said at the webinar hosted by Corporate Secretaries International Association (CSIA).

The organisation put hosted the gathering to explore how businesses and organisations can carry a full 360 approach to ESG, from integrating into business strategies to complying with regulations and standards.

In recommending critical disclosures that should be included in a sustainability report, Ms Awe said, “historically, sustainability reports cover the address a company’s approach to managing the Triple Bottom Line (TBL) of people, profit and planet.”

“However, disclosures in sustainability reports have evolved over the years to address the needs of a wide array of stakeholders. In publishing their sustainability reports, companies should consider a number of relevant disclosures including materiality, sustainability risks, and opportunities as well as a detailed explanation of how companies are addressing the risks and levering the opportunities.

“In addition, a sustainability report should include disclosures on how sustainability is governed by the Board, Executive Management, and designated officers responsible for managing the organisation’s impact footprint,” she added.