Olowo: Sustainability Reporting is Now a Crucial Compliance Issue for Banks and Other Industries – THISDAYLIVE

Financial Reporting Council of Nigeria Holds Workshop on Sustainability Reporting for Financial Institutions in Abuja

Financial institutions in Nigeria are gearing up for a major shift towards sustainability reporting as the impact of climate change looms large. The Executive Secretary/Chief Executive of the Financial Reporting Council (FRC) of Nigeria, Dr. Rabiu Olowo, emphasized the importance of sustainability reporting for banks and other financial institutions at a workshop in Abuja.

Dr. Olowo highlighted that Environmental, Social, and Governance (ESG) principles are no longer just a business decision but a compliance issue that companies must adhere to. The FRC has been proactive in setting standards for sustainability reporting in collaboration with the International Sustainability Standards Board (ISSB).

The workshop focused on implementing ISSB’s sustainability reporting standards, with a phased implementation plan from 2023 to 2030. Dr. Olowo encouraged financial institutions to become early adopters of these standards to demonstrate their commitment to responsible banking and sustainable practices.

Sustainability reporting enables organizations to disclose their ESG performance and impacts, fostering stakeholder trust, cost savings, and improved access to capital. The Central Bank of Nigeria and the Nigerian Exchange Group have introduced guidelines to encourage banks and listed companies to disclose their ESG performance.

Overall, the push towards sustainability reporting in Nigeria reflects a global trend where financial institutions are under increasing pressure to address sustainability issues. By embracing sustainability reporting, financial institutions can not only mitigate risks but also enhance their long-term resilience and reputation.