Seek experts’ guidance on ESG reporting, NGX RegCo urge companies

By Chinwendu Obienyi

NGX Regulation Limited (NGX RegCo) has urged companies to seek expert guidance and systematically monitor ESG-related data to facilitate accurate reporting.

This, it said, was pivotal in encouraging prompt adoption of ESG reporting among NGX-listed firms.

Its Chief Executive Officer, Tinu Awe, conveyed this perspective during a Roundtable themed; ESG Activity Reporting and Sustainable Investing, at the Africa Social Impact Summit 2023, hosted by Sterling One Foundation and the United Nations Nigeria in Lagos recently.

Explaining how companies can integrate ESG factors into their financial reporting, Awe noted that businesses aiming to engage in ESG reporting must establish a clear ESG strategy that aligns with their business goals.

According to her, this approach is pivotal in encouraging prompt adoption of ESG reporting among NGX-listed firms. Furthermore, Awe emphasized that companies that successfully integrate ESG reporting into their operational framework are considered responsible corporate citizens, as such companies are better equipped to mitigate operational risks, attract sustainable investors, and generate long-term value.

She revealed that approximately 50 per cent of listed companies on NGX have fully integrated sustainability reporting into their annual reports or have released dedicated standalone reports while pointing out that the practice of ESG reporting will enhance Nigeria’s global standing in terms of ESG performance and reputation.

She urged corporate entities to embrace this initiative, as it would contribute to Nigeria’s aspiration of achieving carbon neutrality by 2060.

Responding to questions about potential penalties for companies that fail to adopt ESG reporting, Ms. Awe noted that NGX has sustainability disclosure guidelines that became effective in 2019. However, she indicated that these guidelines would be reviewed in accordance with the emerging International Sustainability Standards Board (ISSB) Standards, alongside the evolving landscape of global ESG expectations.