The Securities and Exchange Commission (SEC), has reiterated the need to facilitate the issuance of green bonds and sustainable investments in Nigeria’s capital market.
The Director-General, SEC, Lamido Yuguda, said this in a statement issued by the Commission in Abuja, yesterday, during an Environmental, Social and Governance (ESG) webinar, themed, ‘Unlocking Value Through ESG Investing,’ organised by the CFA Society Nigeria.
Yuguda said the issuance of green bonds would fast track the financing of solar energy and other environmentally-friendly infrastructure.
Companies will also need to continuously disclose relevant information on their adoption of ESG principles. Such information will be critical for the investing public to make informed decisions about available investment choices and guide their asset allocation.
He noted that beyond the Federal Government and corporate issuers, sub-nationals could also take advantage of the growing appetite for issuance of bonds to finance relevant renewable and clean projects.
The Director-General said that revenue generating projects with reasonable social impact would be financed.
“Companies will also need to continuously disclose relevant information on their adoption of ESG principles. Such information will be critical for the investing public to make informed decisions about available investment choices and guide their asset allocation.
“Another important step in the journey of promoting sustainable investment principles is the development of robust sustainability ratings and indices to track companies’ ESG performance.
“It will also simplify for investors and other stakeholders the process of analysing information disclosed by issuers on sustainable finance,” he explained.
He assured that the Commission is willing to collaborate with the CFA Society on ESG and other relevant issues.
President of the CFA Society, Nigeria, Ibikun Oyedeji, said the webinar was organised in continuation of its mandate of promoting global best practices for the investment industry.
Oyedeji said the engagement would also serve as a stimulus to advocate and promote awareness in the country and Africa for the incorporation of ESG factors in business decisions.
CFA Society Nigeria is a member of CFA Institute, the global association of investment professionals that promotes the highest standards of ethics, education, and professional excellence.
NAN
