The NGX Regulation Limited (NGX REGCO) says the business world is facing major sustainability challenges including inequality, overpopulation, climate change and several environmental risks, hence the need to adopt sound sustainable reporting procedures by companies.
Chief Executive Officer of NGX REGCO, Tinuade Awe, made the revelation at a virtual event organized by the Corporate Secretaries International Association (CSIA) to explore how businesses and organizations’ can carry out a full 360 approach to market disclosure.
The programme was themed ‘Unlocking ESG for Boards from Strategy to Disclosure’.
Awe 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.
Speaking on the importance of measuring and reporting sustainability performance for companies, the NGX REGCO boss called on corporate bodies to adopt sound procedures in reporting their environmental and social impact.
“By recognising 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,” she said.
“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 economic, environmental, and social responsibility.”
Awe encouraged companies to adopt best practices in their disclosure on ESG issues by ensuring that their sustainability reports capture relevant sustainability disclosures that are relevant to their stakeholders.
In recommending critical disclosures that should be included in a sustainability report, she said, “Historically, sustainability reports address a company’s approach to managing the triple bottom line 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.”
NGX Regulation — a wholly-owned subsidiary of Nigerian Exchange Group (NGX Group) — is responsible for enforcing clients’ listing and trading rules in accordance with global best practices.
