67% of capital market controlled by ESG complaint companies – Norrenberger

A new report by Norrenberger Research has shown that 67 per cent capital market operations are controlled by Environmental Social Governance (ESG) compliant companies. The report which was launched in Abuja on Tuesday is tagged: “Nigerian Corporate Sustainability Report,” (NCSR) which is the first of its kind in the country. Speaking on the report, the Group […]

A new report by Norrenberger Research has shown that 67 per cent capital market operations are controlled by Environmental Social Governance (ESG) compliant companies.

The report which was launched in Abuja on Tuesday is tagged: “Nigerian Corporate Sustainability Report,” (NCSR) which is the first of its kind in the country.

Speaking on the report, the Group Managing Director of Norrenberger Financial Group, Mr. Tony Edeh emphasised the critical role sustainability adoption plays in Nigeria’s economic growth and development.

Speaking on the sidelines of the launch, he said, “The Nigerian Corporate Sustainability Report is the first of its kind. Before now, you have patches of information on sustainability and energy reporting. Now, what we’ve done at Norrenberger is to put it in perspective, to pull these elements together into a comprehensive, credible, independent report so that members of the public, both investing public and members of stakeholders, can pick a report and be able to analyze it. Now, the truth is, the verdict is out.

“We found out that companies that are ESG compliant outperform their peers in the market by 28 to 30 percent, as the report has shown. So for us, it’s to create that go-to point where every member of the public can pick up a credible report on sustainability and speak to it, analyze it, digest it, and understand the company that they know.

“Also, 21 companies represent the prime of Nigerian capital markets. You’re talking about Dangote, you’re talking about MTN, you’re talking about BUA, you’re talking about Access Bank, you are talking about GTBank and others. These entities represent the crème of the Nigerian capital market. And so when they say they represent 67 per cent, it is the reality.

“And it tells you, right, that companies in Nigerian capital markets are also ESG compliant. They’re also thinking about ESG. And I can tell you that the remainder, the remainder 33 percent, will become ESG compliant before 2028. They will meet the deadline.”

On what can be done to improve ESG penetration, he said, “The Financial Reporting Council of Nigeria has put a roadmap for it and once that roadmap is followed, at the end of the day, most of the publicly quoted companies in Nigeria will become ESG compliant.”

While delivering his address, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama noted that the NCSR contributes directly to building that credibility.

He added that “SEC’s aspirations for the Nigerian capital market infrastructure for T+1 Sentiment System, which was launched recently and will be effective 1st of June, for a BVN-linked investor registry for broader retail participation to tens of millions of Nigerians, required to build trust, and trust in financial markets is a product of transparency,” he said

He added that “Sustainability is no longer a reputational accessory but a strategic imperative because companies that embed environmental, social, and governance considerations into their core business models, not as a communication exercise, but as a genuine operating philosophy, will find themselves better positioned to attract long-term investors.”

Also in his remarks,  Ibrahim Shelleng,  the Senior Special Assistant to the President of Climate Finance and Stakeholder Engagement stated that given the commitments that Nigeria has to the Paris Agreement and the United Nations, “Nigeria has obligations to reduce, for instance, our emissions by 20% unconditionally. And with that comes the private sector as the private sector has their own obligations within that as well.”

He added, “The framework essentially sets the tone for what is required of the private sector because by law, every corporate entity that has more than 50 employees has to have a sustainability desk. So that has been placed in law.”