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Sustainable Financing: NGX Underscores Pivotal Role Of ESG Integration

Chief Executive Officer, NGX, Temi Popoola

Nigerian Exchange Limited (NGX) understands the pivotal role that ESG performance plays in ensuring a company’s long-term sustainability.

The Chief Executive Officer, NGX, Popoola, stated this recently at a virtual conference with the theme:  “Empowering Responsible Investing through Data Metrics and Environmental, Social and Governance (ESG) Integration”, jointly organised by Global Reporting Initiative (GRI) Africa and Principles for Responsible Investment (PRI).

In his words: “Fuelled by our commitment to foster the growth of long-term sustainable finance and promote the adoption of sustainable business practices among our listed companies, we unveiled the NGX Sustainability Disclosure Guidelines in 2019, working with Global Reporting Initiative (GRI).

“We have continued our engagement with GRI to promote the adoption of ESG reporting through The NGX Sustainability Disclosure Guidelines”, he added.

Sharing insights on the value of incorporating ESG data metrics for responsible investing, Head of Africa, Signatory Relations, Darron Scorgie, noted that many African investors are now more focused on their objectives for long term returns.

“African investors are recognizing that their journey to a sustainable financial system is going to be a little different from developing markets, and are increasingly inching forward by considering investments in sustainable outcomes alongside their objectives for long-term financial returns.

For his part, Dave Reubzaet, Director, Capital Markets, shared insights on the value of ESG integration for investors and regulators…

“For investors, ESG metrics is key to look at financial materiality and impact, and to put sustainability expectations and data in in the context of emerging markets. In addition, for regulators it is important to align as much as possible with existing sustainability standards, to create a global common language and metrics and to reduce the compliance burden, time and cost”. He said.

Other speakers at the event include Chinua Azubike, CEO, InfraCredit; Temilade Aduroja, Head of Investor Relations, Dangote Cement Plc, and Nicole Martens, Senior Stewardship Professional, Old Mutual Investment among others.

The virtual event was set up in line with the Exchange’s commitment to foster the growth of long-term sustainable finance in the Nigerian capital market.

This is in a bid to help investors, companies, market regulators and practitioners by an opportunity for sharing of experiences and strategies on how investors make sound investment decisions using ESG metrics/data.

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