The Director-General of the Securities and Exchange Commission, Emomotimi Agama, has called on corporate trustees to evolve beyond their traditional role as intermediaries and position themselves for opportunities in sustainable finance.
In a statement made available to PUNCH Online on Monday, Agama urged trustees to extend their responsibilities beyond intermediary roles, particularly in the realm of sustainable finance, where they could significantly influence positive change and act as guardians of sustainability.
He stated this recently at the 2024 Business luncheon of the Association of Corporate Trustees in Lagos, with the theme ‘Sustainable finance: The role of corporate trustees’.
“This year’s theme ‘Sustainable finance: the role of the corporate trustees ‘ is very pertinent because our planet faces very daunting challenges, climate change, resource scarcity, social inequality and economic instability are in all demand for a collective effort towards a sustainable future for all of us.
“I encourage you to go beyond the traditional role of intermediaries, especially in the area of sustainable finance. As a responsible steward of nature you have a significant influence in shaping the landscape to positive change and raise the hope as trustees acting as guidance and gatekeepers of sustainability,” he said.
The Head of Agusto Consulting Limited, Jimi Ogbobine, added that sustainable finance encompasses investment decisions that not only seek financial returns but also consider the environmental, social, and governance impacts of investments.
According to Ogbobine, sustainable financing involves allocating capital to businesses addressing environmental degradation and climate change while promoting Corporate Social Responsibility through mechanisms such as Green Bonds.
He outlined several challenges facing sustainable finance, including market inefficiencies, lack of incentives, limited access to finance, policy and regulatory gaps, greenwashing, market fragmentation, and information asymmetry.
Those obstacles, he noted, needed to be addressed to fully realise the potential of sustainable finance and its benefits for society and the environment.
“Additionally, sustainable financing is the allocation of capital funds to businesses aimed at addressing environmental degradation and climate change while fostering Corporate Social Responsibility (CSR). This can be achieved through the issuance of Green Bonds,” he declared.
The President of Associate Corporate Trustees, Omolola Iyinolakan, noted the untapped potential of the green bond market in Nigeria, estimating that the country had not yet issued green bonds worth up to N500bn.
Iyinolakan stressed the urgency of embracing sustainable finance to address the depletion of natural resources and the growing global consciousness towards sustainability.
“I don’t think we have done up to N500bn in green bonds in Nigeria because the world is evolving and the world is also depleting natural resources because of globalization and people are becoming more and more conscious of the need to embrace sustainability finance,” he stated.