By Nkiruka Nnorom
NGX Regulation Limited (NGX RegCo) has charged corporate organisations to adopt sound procedures in reporting their environmental and social impact.
Ms. Tinuade Awe, the Chief Executive Officer, NGX RegCo, made the call during a webinar hosted by Corporate Secretaries International Association (CSIA), with the theme: “Unlocking ESG for Boards from Strategy to Disclosure”, saying that the adoption of Environmental, Social, and Governance (ESG) lens in investment approaches is critical for identification of businesses with forward-looking approach to long-term risk management.
Awe said, “Our world today is facing major sustainability challenges including inequality, over-population, 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 economic, environmental, and social responsibility.
“Historically, sustainability reports cover 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.”