The Securities and Exchange Commission (SEC) has adopted the Nigerian Sustainable Finance Principles (NSFP) developed by the Financial Services Regulation Coordinating Committee (FSRCC) for the capital market.
In a statement, SEC stated that the objectives of its guidelines on NSFP are to stimulate a resilient, competitive and sustainable market that promotes development and improves the quality of life for all while boosting corporate governance practices to ensure that the participants in the market operate in a transparent and sustainable manner
According to the Commission, the guidelines will also nurture an environment that facilitates job creation and diversity, women empowerment, human rights protection, access to affordable capital market products by the economically less privileged and contribute to efforts aimed at reducing global warming and other environmental footprints resulting from our activities and those of our stakeholders.
The Commission said the guidelines and approach are principles based and, therefore, do not prescribe specific implementation requirements but, however, noted that these principles should be applied by each regulated entity in a manner that fits individual mandates, core values, and enterprise risk management framework.
SEC noted that reporting enhances companies’ accountability for the effects of their social impacts which in turn fosters social responsibility in organisations and therefore enhances trust, facilitating shared values on which to build a more cohesive society, adding: “Consequently, regulated entities must report regularly on the extent to which they apply these principles. Consequently, the adoption of financial sustainability principles and its reporting are vital steps towards achieving a sustainable global economy.”