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FRC advises banks and others to implement voluntary sustainability reporting

The Monetary Reporting Council has referred to as on all monetary establishments within the nation to voluntarily implement sustainability reporting rules earlier than they turn into obligatory.

Sustainability reporting is the follow by which organizations disclose their environmental, social and governance efficiency and the impacts of a corporation’s day-to-day actions.

The FRC additionally mentioned that Nigeria has emerged as a frontrunner in monetary greatest practices because the nation is now a reference level for different African international locations searching for to enhance their monetary techniques.

The Government Secretary of the Council, Rabiu Olowo, said this throughout the sensible capability constructing workshops held in Abuja on Wednesday geared toward selling sustainability reporting amongst monetary establishments.

The occasion was organised by the FRC in collaboration with the Nigeria Built-in Reporting Committee to deepen the acceptance of the coverage, leveraging the worldwide framework.

Olowo famous in his speech that two banks within the nation have indicated that they need to be the primary to undertake this strategy, whereas urging others to comply with swimsuit.

This initiative, he mentioned, underscores the significance of built-in reporting that mixes monetary and sustainability efficiency, materiality assessments centered on key environmental, social and governance points, stakeholder engagement, efficiency indicators and targets, and assurance and verification to make sure accuracy.

He mentioned the reporting is a disclosure of how “actions are being taken within the current primarily based on choices obtainable sooner or later”.

“Based mostly on the efforts of FRC and all stakeholders, Nigeria has turn into a benchmark for greatest practices and a sought-after associate to assist different African international locations on this journey. We’re delighted to see that now we have two banks among the many monetary establishments which might be early adopters. We subsequently look ahead to getting extra individuals on the practice this yr and never ready for the obligatory yr.”

In keeping with him, this achievement was attainable due to the joint efforts of FRC and all different stakeholders.

“For monetary establishments, sustainability reporting is crucial because it allows them to reveal their dedication to accountable banking ideas, sustainable practices, danger administration and sustainable monetary alternatives.”

“The looming unfavorable affect of local weather change requires everybody to take motion, and so it isn’t only a enterprise resolution or a nice-to-have, but it surely turns into a compliance challenge, which each and every enterprise is anticipated to fulfill by means of cultural behaviour. Sustainability is subsequently central to human existence,” the FRC boss added.

Olowo added that the workshop is designed to arrange monetary establishments to excel in sustainability reporting earlier than it turns into obligatory. The proactive strategy is anticipated to carry quite a few advantages to organizations, together with elevated stakeholder confidence, price financial savings by means of the transition to renewable power, tax financial savings by means of capital allowance exemptions, improved popularity, higher decision-making, danger administration, regulatory compliance, entry to capital, elevated worker engagement, innovation and alternatives for sustainable progress.

“Sustainability reporting is crucial for accountable banking and finance. We urge all stakeholders to embrace this follow, utilizing world frameworks and native tips, to reveal their dedication to a sustainable future for Nigeria and the world.”

The FRC chief additional defined that the adoption of greatest practices in sustainability reporting is just not solely meant to enhance transparency and belief, but additionally to drive steady enchancment and contribute to a extra sustainable future for varied establishments.

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