At the Financial Institutions Training Centre (FITC) Sustainability ESG Summit 2024, Olufemi Shobanjo, Chief Executive Officer of NGX Regulation (NGX RegCo), highlighted the pressing need for a unified ESG regulatory body.
Shobanjo, at the summit with the theme, ‘From Vision to Action – Leading with Sustainability and ESG: Building a Sustainable Future and Green Finance,’ said such an entity is crucial to streamline and enforce compliance across industries.
During the panel discussion, Shobanjo praised the FITC Board and management, particularly Mr Phillip Ikeazor and Mrs Chizor Malize, for their pioneering launch of the ESG Sustainability Institute. The initiative, he said, has created a vital platform for advancing and discussing sustainability practices.
Shobanjo also shared a compelling case study of EcoTech Solutions, a local company that successfully embraced sustainability. Facing increasing environmental and social pressures, EcoTech implemented comprehensive ESG practices. The outcomes were striking reduced costs, enhanced brand reputation and substantial growth in profitability. This transformation exemplifies how many companies are integrating ESG into their core strategies.
Addressing the regulatory landscape, Shobanjo noted that Nigeria’s existing laws, such as the Climate Change Act and the Federal Competition and Consumer Protection Act, offer a solid framework for tackling environmental and social issues.
However, despite these advancements, challenges persist. While the financial services sector has made strides with initiatives like the Nigerian Sustainable Banking Principles, other sectors are lagging.
Shobanjo emphasised the importance of establishing a unified ESG regulatory body to ensure consistent compliance across all industries and align with national and global ESG standards. He argued that this approach would enhance transparency and accountability, positioning Nigeria as a leader in global ESG performance.
He also discussed the role of innovative technologies in sustainable finance. With the introduction of NGX Invest, NGX RegCo’s new digital platform, the organisation is advancing paperless subscriptions and making green finance more accessible.
Technologies such as blockchain, big data, and fintech are also revolutionising sustainable finance by improving transparency, optimising investment decisions and broadening access to green investments.
“I urge everyone to integrate sustainability into their business strategies. By adopting ESG principles and leveraging innovative technologies, companies can drive significant change and contribute to a sustainable future. Commitment to these practices is essential for fostering a resilient and prosperous economy,” Shobanjo said.
He reaffirmed NGX RegCo’s dedication to promoting a responsible and sustainable market environment. While the path ahead is challenging, Shobanjo is optimistic that working together, sustainable future for all can be built.
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