FRC Warns Corporate Entities against Falsifying Statements on Sustainability Reporting

*Olowo seeks harmonised sustainability disclosure to boost FDIs, others

*Faber: ISSB standards to expose risks in banks’ portfolios

James Emejo in Abuja

Executive Secretary/Chief Executive, Financial Reporting Council (FRC) of Nigeria, Dr. Rabiu Olowo, yesterday warned corporate and government entities in the country that the council would not tolerate greenwashing in reporting sustainability.
He vowed that the council would leverage the efforts and rich expertise of the Adoption Readiness Working Group (ARWG) on the subject matter to deliver top-notch regulatory supervision in the country’s interests.

Speaking at the opening of the regulatory roundtable to commemorate the visit of the Chairman, International Sustainability Standards Board (ISSB), Mr. Emmanuel Faber and his team to Nigeria, Olowo, said the group had finalised the roadmap document, which would be a tool to mainstream the implementation of sustainability reporting in the country in phases and with assurance and timelines.
He pointed out that though most of the world’s economies are failing to advance the social, environmental, and climate goals set in the 2030 Agenda and the Paris Agreement, Nigeria was taking steady and progressive steps.

He said this is exemplified by the roadmap report for adopting the International Sustainability Standards IFRS S1 and S2 by the FRC and the establishment of the Interministerial Committee on Carbon Market Activation Plan by President Bola Tinubu.
Faber, however said, the ISSB standards would assist banking supervision committees in assessing the risks in banks’ portfolios.
He said, “The International Public Sector Accounting Standards, for government and state entities have also elected to choose our standards to bring climate topics and part of the national accounting systems.”

Also, President, Institute of Chartered Accountants of Nigeria (ICAN), Mr. Innocent Iweka Okwuosa, while commending the FRC for spearheading the adoption of the reproting standards in the country, said, “We have created massive awareness within ICAN and all our members are onboard”.
Nonetheless, the FRC boss said the harmonisation of sustainability disclosure standards globally remained a critical enabler to unlock and align the existing flows of both private and public capital with measurable sustainability outcomes.

This he said, would make better data available and allow for progress in other fields within the “impact transparency” agenda for agents to make informed decisions with full information that evolves from the current paradigm of financial return and risk alone.
He emphasised that “Adequate disclosure is key to investment decisions and our country, Nigeria, urgently needs investments, especially foreign direct investment.”

Olowo said several key regulatory bodies in the country are carrying so many activities and developing policies that have the potency of truncating the progress being made as these silo efforts may be counterproductive.
He said, “There is therefore, the urgent need to create a platform for regulatory roundtable to fashion out a potent mechanism for collaboration and harmonisation of policies to ensure a seamless and effective implementation of sustainability reporting in Nigeria.”
He noted that capital to support investment in the most critical issue areas facing societies was not flowing at the required pace and scale, nor with adequate effectiveness to ensure the delivery of real impact with transparency and integrity where needed the most.

He said, “We are at a pivotal moment; less than a decade away from the date set by the UN to achieve the SDGs, most of the world’s economies are failing to advance the social, environmental, and climate goals set in the 2030 Agenda and the Paris Agreement.
“However, Nigeria could be said to be taking steady and progressive steps as exemplified by the roadmap report for the adoption of the International Sustainability Standards IFRS S1 & S2 by the Financial Reporting Council of Nigeria and the establishment of the Inter-ministerial Committee on Carbon Market Activation Plan by Mr. President.”

Continuing, Olowo said, “The ISSB Standards therefore, represent a significant step forward in promoting a global baseline for transparency, accountability, and comparability in sustainability reporting by harmonising the disparate sustainability standards frameworks serving different markets and differing investors’ appetite for ease of corporate disclosure as part and parcel of general-purpose financial reporting.
“These globally recognised standards provide a comprehensive framework for organizations to assess, measure, and communicate their environmental, social, and governance performance effectively.
“By embracing these standards, we have demonstrated our commitment to support and protect investors’ interest and enhance their confidence by fostering a more resilient and sustainable economy.”
He said Faber’s visit further underscored the importance of sustainability as part of corporate and general-purpose financial reporting in today’s world.
Olowo said, “As we gather here today, we are demonstrating our collective resolve to work together towards addressing the pressing challenges of climate change, environmental degradation, and social inequality.
“The impact of these issues is felt across the globe, affecting communities, ecosystems, and economies. We must take decisive action to mitigate these threats and safeguard the well-being of current and future generations.”