NGX Regulation Limited (NGX RegCo), has harped on the need for corporate bodies to adopt sound procedures in their reporting on their environmental and social impact.
The Chief Executive Officer, NGX RegCo, Ms. Tinuade Awe, gave the charge yesterday during a webinar hosted by Corporate Secretaries International Association (CSIA), themed, “Unlocking ESG for Boards from Strategy to Disclosure.”
Discussions are meant to explore how businesses and organisations can carry a full 360 approach to Environmental, Social, and Governance (ESG), from integrating into business strategies, complying with regulations and standards.
Reiterating the importance of measuring and reporting sustainability performance for companies, Awe said: “Our world today is facing major sustainability challenges including inequality, overpopulation, 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 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.
Awe also encouraged companies to adopt best practices in their disclosure on ESG issues by ensuring that their sustainability reports capture sustainability disclosures that are relevant to their stakeholders.
Recommending critical disclosures that should be included in a sustainability report, she said: “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.”