ACCA leaders urge Nigeria, others to adopt sustainability principles

Stakeholders at the Association of Chartered Certified Accountants (ACCA) have charged Nigerian and other African governments to be more aggressive in integrating environmental, social and governance (ESG) principles for sustainable development guidelines, saying the public sector must take a leadership role in this regard.

In a keynote address, Chief Executive of the Institute for Sustainability Africa, Rodney Ndamba, said governments of African countries must integrate ESG into all procurement processes and investment decisions.

He noted that “ESG policy failures continue to haunt many countries despite the continent being rich in natural resources” just as poverty and inequality have continued to fuel conflicts and war.

“According to my research, the African Union does not have an investment protocol incorporating ESG and the same is the Economic Community of West Africa States (ECOWAS), the East African Community (EAC) and the Southern African Development Community (SADC). Africa has been lagging behind in adopting Voluntary

Sustainability Standards,” Ndamba said, adding that integrating ESG in the public sector is a window of opportunity for sustainable development in Africa.

For the transition to happen, the keynote speaker said, there is a need for a mindset shift that ESG/sustainability is not for the private sector alone but for also the public sector. He added that a strong collaboration between public and private sectors is vital while laws and regulations making ESG/sustainability reporting will be a defining moment in Africa.

The speaker also spoke intensively on how the governments could leverage fiscal tools, including incentives to support the transition, noting: “The public sector should ensure ESG/sustainability governance structures are in place (sustainability steering committee, sustainability management teams and sustainability champions), integrate ESG into national policies, performance appraisal, risk management, national budgets and procurement practices.

“Governments in Africa should facilitate multi-stakeholder participation in voluntary sustainability/ESG standards implementation by partnering with the private sector and partnerships for the goals (PAOs). It should include ESG/sustainability conditions in trade agreements.”

Speaking on related issues, ACCA Director for Africa, Jamil Ampomah, noted the importance of public value in all investment decisions the African governments are partly involved in. He added that the role of public accountants is key in maximising public value in both public and private sector projects.

Chief Executive of the Association, Helen Brand, also acknowledged the relevance of professional accountants to maximising the benefits of the public good. She said professionalism in accounting was much more important in protecting public trust as corruption in public sectors is endemic and almost inevitable.

According to her, ACCA is committed to the efficiency and development of the public sector in Africa and building “infrastructure that works”.

At the panel, experts across the continent examined the prospects and constraints of developing an accounting profession that meets the peculiarity of Africa. They also deliberated on issues around sustainability and public sector growth.