NGX Regulation CEO Tasks Market Stakeholders on Improved Climate-related Financial Disclosure

NGX Regulation Limited has urged all market stakeholders to come up to speed with recent trends in climate disclosure by paying closer attention to climate related financial risks and opportunities in their business operations in line with the recommendations of the Financial Standards Board (FSB) Task Force on Climate-related Financial Disclosures (TCFD).

The Chief Executive Officer, NGX Regulation Limited, Ms. Tinuade Awe stated this during a virtual training on climate disclosure jointly hosted by Nigerian Exchange Limited and NGX Regulation in collaboration with UN Sustainable Stock Exchanges (SSE) Initiative, International Finance Corporation (IFC) and Carbon Disclosure Project (CDP) in Lagos.

Awe noted that the training is timely due to increased pressures from policy makers on climate disclosure from listed companies.

In her opening remarks, she said, “for Nigeria, these policy pressures emanate from the Climate Change Act 2021 which was signed into law by President Muhammadu Buhari in November 2021. This is also consistent with Nigeria’s vision to be a low-carbon, climate-resilient, high growth circular economy that reduces its current level of emissions by 50% by 2050, as captured in the 2050 Long-Term vision for the Nigerian economy which was issued by the Department of Climate Change, Federal Ministry of Environment in November 2021.”

She stated that the world is in a race to rapidly decarbonize, and investors and providers of finance are increasingly interested in how companies are moving towards achieving net-zero emissions. Consequently, companies that do not effectively navigate the climate transition and provide adequate disclosure on climate action may experience increased friction in accessing long-term sustainable capital.