NSE Rolls-Out Sustainability Disclosure Guidelines

Must Read

US $10.7m Amsalco Shopping Mall Breaks Ground in Kaduna

The mall dubbed ‘Amsalco Galaxy Mall’ is being constructed at the Murtala Muhammed Square in the heart of Kaduna...

Advancing Economic Growth in Africa; Tony Elumelu Meets with the Presidents of Congo DRC and Rwanda

As the number of African entrepreneurs continues to rise, governments have begun to develop programs and platforms conducive enough...

Performance of all PFAs in Nigeria for July 2019

Have you ever taken time to check out the Returns on Investment (ROI) of the funds in your Retirement...
- Advertisement -
In fulfilment of its desire to champion sustainable capital market practices in Africa, The Nigerian Stock Exchange (The NSE or The Exchange) is pleased to announce that its Sustainability Disclosure Guidelines (the ‘Guidelines’) has been approved by The Securities Exchange Commission (SEC). The Nigerian Stock Exchange recognizes that the promotion of Environmental, Social and Governance (ESG) principles can facilitate more meaningful engagement between investors and listed companies on ESG risks and opportunities. This, in turn, is expected to further deepen the role played by market operators and regulators in leading sustainability policies and regulations. 
 
The Guidelines primarily provide the value proposition for sustainability in the Nigerian context.  It also articulates a step by step approach to integrating sustainability into organisations, indicators that should be considered when providing annual disclosure to The Exchange, and timelines for such disclosures. Whilst developing the Guidelines, The Exchange noted that Issuers may be at varying levels of understanding sustainability disclosure requirements and capacity to comply with the requirements. The Exchange encourages all Issuers to adopt the practice of sustainability reporting.
The Guidelines are available in electronic form at www.nse.com.ng and will be distributed to Issuers who are listed on all the Boards of the Exchange. The Guidelines will become effective on January 1, 2019. 
They will be mandatory for companies listed on the Premium Board of the Exchange and the following reporting compliance timeline shall apply:
S/NYear EndingReporting Time
131 December 2019On or before 30 September 2020
228 February 2020On or before 30 November 2020
331 May 2020On or before 28 February 2021
430 June 2020On or before 31 March 2021
Whilst describing the objectives of the Sustainability Disclosure Guidelines, the Chief Executive Officer of NSE, Mr. Oscar N. Onyema, OON, explained that: “We are supporting the global agenda of green and sustainable finance, which is so critical for Africa. As the first Exchange to list a sovereign green bond in Africa, our issuance of these Guidelines is to further enable investors to ascertain their exposure to ESG risks whilst providing our Issuers with a platform to disclose them along common themes for comparability. We encourage peer exchanges on the continent to continue to enhance information disclosure in their markets as this will help build trust”.
On his part, Mr. Olumide Orojimi, Head, Corporate Communications at The NSE was of the view that: “with continued global participation in our market, a shared framework of ESG principles with multi-stakeholder approach and metrics is imperative. The Guidelines set out recommendations for good practice in thirteen thematic areas under four core principles in ESG reporting. With the launch of these Guidelines, investors can look forward to a consistent approach to ESG reporting from Issuers listed on The NSE”. 
As a member of the United Nations Sustainable Stock Exchanges (SSE) initiative, and the World Federation of Exchanges (WFE), NSE is committed to providing its listed companies with guidance on sustainability reporting and has taken steps to demonstrate its commitment through a number of pre-implementation activities. The first major step was the hosting of the inaugural Nigerian Capital Market Sustainability Conference (NCMSC) in November 2015, which served as a stakeholder engagement session to discuss the business value of the sustainable investment, enhancing corporate transparency and ultimately performance on Environmental, Social and Governance (ESG) issues. The outcomes from the conference and results from relevant assessments aided in the production of the draft Sustainability Disclosure Guidelines (SDG). The NSE also held a Sustainability Reporting Seminar on June 8, 2016, to intimate stakeholders with the Guidelines, the reporting format and template, and the real value proposition of reporting. The draft Guidelines were subsequently taken through The Exchange’s rule-making process, exposed to stakeholders’ comments, and submitted to the Securities and Exchange Commission for approval.
- Advertisement -

Latest News

How Blockchain might change the whole fashion industry – and safeguard the authenticity of your goods

So far you have probably only heard of blockchain in connection with financial transactions and Bitcoins.Well, that should change...

3Line Set To Launch Cutting-Edge Retail Management Solution For SMEs

3Line Card Management, an innovative fintech company is set to launch an integrated retail management payment solution, Visum to the Nigerian market.The innovative payment...

Suntrust Bank Nigeria Celebrates 3rd Year Anniversary

They might not be able to blow their trumpet-like other banks in the country but Suntrust Bank Nigeria, will look back at its 3years...

NSE Donates Food Items, Beverages, Others To Mother Theresa Orphanage

The Nigerian Society of Engineers (NSE) Maitama Branch donated food items, beverages, soaps and toiletries, worth thousands of Naira to children and staff of...

Nigeria’s GDP could easily grow to $1trn by 2023 If we revive these 10 moribund industries

Nigeria’s GDP could easily grow to $1trn by 2023 If we revive these 10 moribund industries(1) Ajaokuta Steel MillNo nation can industrialise without steel....

More Articles Like This