Climate change adaptation needed to save economy, says minister

The Minister of Industry, Trade and Investment, Adeniyi Adebayo, has described the impacts of climate change as real, saying we must adapt appropriately to protect livelihood and mitigate its impacts on the economy.

He stated this at the Financial Reporting Council of (FRCN) Stakeholder Engagement Session on Mainstreaming Nigeria’s Collaborative Actions on Climate-Related Risks and Disclosures, which took place virtually on Thursday.

The minister said responding to climate change requires integrated and comprehensive strategies to ensure minimal impacts. He said risk management within appropriate contexts is required and full climate change exposures are required from capital market, listed companies.

According to him, full disclosure would help investors to make the right decisions before investing, adding that it is critical the standards of sustainability growth are kept. He said understanding and complying with the related issues would raise the bar of transparency and enhance investors’ ability to make informed decisions.

The Executive Secretary of FRCN, Shuaibu Ahmed, said efforts by all stakeholders are required to raise the bar of corporate governance standards and sustainable growth.

Ahmed stated this at FRCN Stakeholder Engagement Session on Mainstreaming Nigeria’s Collaborative Actions on Climate-Related Risks and Disclosures, which took place virtually on Thursday.

The event was first in series to ensure that Nigeria contributes to global debates on sustainable development. Ahmed recalled that Nigeria contributed immensely to the creation of global financial and accounting standards.

The FRCN boss was delighted with the response of critical stakeholders to the engagement invitation, promising that it would provide an opportunity to share thoughts on underlying issues.

According to him, Nigeria must be at speed with the global move towards the adoption of sustainability guidelines. He observed that Nigeria is not immune to climate-related challenges and risks.

Chief Executive Officer of Nigerian Exchange Regulation Limited, Tinuade Awe, urged all critical stakeholders to prioritise implementing initiatives that positively benefit the environment and combat climate change.

Awe urged all critical stakeholders to prioritise implementing initiatives that positively benefit the environment and combat climate change given Nigeria’s ambitious climate goals to reduce greenhouse gas emissions by 47 per cent by 2030.

She further highlighted the increasing global trend in climate-related disclosure and regulations and encouraged companies to incorporate Environmental, Social and Governance (ESG) factors into their business operations, activities and reporting processes as a critical step to ensuring that they are positioned to align with the rapidly evolving regulations and guidance on sustainability and climate disclosure.

“In Nigeria, the Federal Government has localized the global call by committing to achieving a net-zero economy by 2060 and signing the Climate Change Act 2021 into law. This policy is consistent with Nigeria’s vision to be a low-carbon, climate-resilient, high growth circular economy that reduces its current level of emissions by 50 per cent by 2050, as captured in the 2050 Long-Term vision for the Nigerian economy which was issued by the Department of Climate Change, Federal Ministry of Environment in 2021″, she said.

She noted that NGX Regulation has played several roles to promote sustainability reporting. She said, “At NGX Regulation, we are committed to fostering the adoption of sustainable business practices and disclosure amongst companies listed on Nigerian Exchange Limited. This is evidenced by our leading role in the development and issuance of the NGX Sustainability Disclosure Guidelines in 2019 which has provided support for companies seeking guidance on sustainability reporting practices.