SEC Urges Sustained Green Investments In Capital Market

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    The Securities and Exchange Commission (SEC) has reiterated the need to facilitate the issuance of green and sustainable instruments in the Nigerian capital market.

    It said such issuances will go a long way to assist in financing solar energy and other environmentally friendly infrastructure.

    Director General of the SEC, Mr. Lamido Yuguda stated this during the Environmental, Social and Governance Roundtable with the theme: ‘Unlocking Value Through ESG Investing organized by the CFA Society Nigeria,’ on Thursday.

    Yuguda said that beyond the Federal Government and corporate issuers, sub-nationals can also take advantage of the growing appetite to issue bonds to finance relevant environment-friendly projects, especially those that are revenue generating and with reasonable social impact.

    He said: “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.

    “This will further assist ESG conscious investors in making their investment choices. It will also simplify for investors and other stakeholders the process of analyzing information disclosed by issuers on sustainable finance.”

    According to the SEC boss, given the global interest in ESG and the quantum of finance available to corporates and countries adopting the relevant principles, Nigerian issuers, governments and corporates, regulators, exchanges and other key stakeholders need to collaborate more to develop and issue necessary instruments to attract additional foreign capital into the country.

    Yuguda said that as Securities regulators, whose core mandate is to ensure investor protection, by maintaining fair, efficient and transparent markets and reducing systemic risks, the Commission believes this role can further be harnessed through sustainable finance; and pledged to continue to strongly support the adoption of ESG principles and collaborate with relevant stakeholders to drive sustainable finance initiatives.

    In her address, President of the CFA Society Nigeria, Ibikun Oyedeji said the Webinar was organized in continuation of the Association’s mandate of promoting global best practices for the investment industry, and to serve as a stimulus to advocate and promote awareness in Nigeria and Africa as a whole for the incorporation environmental, social and government factors in business decisions and product development.

    Oyedeji stated that the Webinar also provides an opportunity to accelerate the progress and demonstrate the purpose through responsible investing and aimed at equipping the practitioners and other stakeholders within our community with the right tools to navigate this evolving terrain.

     

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