Expert Advises NGX to Make Sustainable Reports Mandatory for All Listed Companies

October 6, 2021
Make Sustainable Reports Mandatory

By Ashemiriogwa Emmanuel

A Partner and Head of Sustainability Services at Africa’s leading professional service firm, PricewaterCooper (PwC) Nigeria, Mrs Rukaiya El-Rufai, has advised the Nigerian Exchange (NGX) Limited to make sustainable reports mandatory for all companies listed on its platform.

At the moment, only firms on its premium board are mandated to adhere to the exchange’s Sustainable Disclosure Guidelines (SDG), a development Mrs El-Rufai faults as she said it is not encouraging in advancing the integration of sustainability into organisations.

Speaking at the eighth edition of the annual PwC Capacity Enhancement Workshop held virtually on Tuesday and monitored by Business Post, the sustainability expert emphasised that extending the SDG to other listed companies would help in the speedy promotion of Environmental, Social and Governance (ESG) principles which will facilitate more meaningful engagement between investors and listed companies on ESG risks and opportunities.

While commenting on some of the standards and framework guiding ESG in Nigeria, she said, “I am so proud of our Central Bank, they were very forward-looking because it was implemented eight years ago and they were leaders on sustainable banking principles.

“Another is the Financial Reporting Council of Nigeria (FRCN) Code of Cooperate Governance, The Securities & Exchange Commission (SEC) Code of Cooperate governance, they all have ESG requirements.

“Also, NGX has a Sustainable Disclosure Guidelines, but they restricted it to premium companies. To be honest, I think that affected the adoption. It would really be great If they extend it to all listed companies because that would help in the ESG fitness of Nigeria.”

The guidelines outline recommendations for good practice in 13 thematic areas under four core principles in ESG reporting of which investors are to look forward towards a consistent approach to ESG reporting from issuers listed on the local stock exchange.

Mrs El-Rufai who spoke extensively at the event on the advocacy of ESG through journalism urged media practitioners across the country to disclose tangible information on the subject as stakeholders are looking for relevant and complete ESG data.

In her closing remark, she also encouraged journalists to stand against the act of greenwashing – a common practice where organisations put forward ecological arguments in order to forge an ecologically responsible image among the public, stressing that the verification of information before publishing is very critical.

She urged reporters to continuously educate the public on climate change and ESG related issues.

Leave a Reply

Facebook Community Accelerator Programme
Previous Story

Nigerians Lead Winners in Facebook Community Accelerator Programme

FGN Savings Bond
Next Story

DMO Cuts Coupon Rates for October FGN Savings Bond

Latest from Economy