NGX Charges Companies on Full Disclosure of Business Impacts 

The Nigeria Exchange Limited (NGX) says organisations must present full reports about their environmental and social impacts. 

Speaking at a webinar session organised by the Corporate Secretaries International Association on how businesses and organisations could carry a “full 360 approach to market disclosure, the Chief Executive Officer, NGX Regulation Limited, Ms Tinuade Awe said “Our world today is facing major sustainability challenges including inequality, overpopulation, climate change, and several environmental risks.

Discussing the importance of measuring and reporting sustainability performance for companies she said: “By recognising that capital allocation makes a real impact on the environment and society at large, investors can reap sustainable long-term investment decisions through investments in ESG-themed investments.

“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,” she said. 

Awe encouraged companies to adopt best practices in their disclosure on ESG issues by ensuring that their sustainability reports capture relevant sustainability disclosures that are relevant to their stakeholders.

“Historically, sustainability reports address a company’s approach to managing the triple bottom line 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, she said in respect to critical disclosures that should be included in a sustainability report. 

“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.

She added that 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.

The programme was themed, ‘Unlocking ESG for boards from strategy to disclosure’.