Considering the devastating impact of climate change and to ensure that they align with the objectives of Environmental, Social, and Governance (ESG) considerations, the director general of the Securities and Exchange Commission (SEC) Mr Lamido Yuguda has urged capital market operators to create ESG compliant products.
Mr Yiguda disclosed this in Lagos, at the workshop on sustainable finance organised by Securities & Exchange Commission, in collaboration with Financial Centre for Sustainability, with the Theme “ESG and Sustainable Finance: The Future of Investment,
He noted that “the world has found itself at a critical juncture where we must urgently consider the devastating impact of climate change, inequality, conflict and insecurity vis-à-vis the need for responsible corporate behaviour to reshape our thoughts and actions around the future of our investment practices, and ensure that they align with ESG considerations”.
“All stakeholders, desirous of a better future for themselves, their businesses and their communities, should fully support every effort to build an economy that encourages sustainable business practices”.
The SEC DG, pointed out that “the revised Nigerian Capital Market Master plan strongly underlines the need to create awareness and actively deploy educational and advocacy campaigns to promote ESG-compliant products. This initiative has been identified to be of high priority, demanding immediate implementation, and this is one of the Securities and Exchange Commission’s principal reasons for organising this workshop, in collaboration with our co-hosts, the Financial Centre for Sustainability (FC4S)”.
He explained that at its core, ”sustainable finance integrates ESG factors into investment decisions, seeking long-term economic and social benefits for both stakeholders and society. It is therefore heartening to witness a growing number of institutional investors and funds embracing various ESG investing approaches in recognition of the potential positive impact on individuals, businesses and society”.
Adding that “at the global level, we are also witnessing an encouraging trend of sustainability-theme funds gaining prominence, especially in developed markets. This is quite significant, as it signposts a rising global adoption of sustainability criteria within the investment community, a situation, we believe, is not unconnected with the strong correlation that has been demonstrated between ESG compliance and financial performance”.
He said “Nigeria has the opportunity to drive positive changes through the focused promotion of ESG and sustainable finance in our financial markets. At the Securities and Exchange Commission, we stand firm in our commitment to champion the promotion of sustainable”
