Monday, December 6

SEC to facilitate sustained green investments in capital market


The Securities and Exchange Commission (SEC) has maintained that it would sustain its plans to facilitate the issuance of green bonds and sustainable investments in the country’s capital market. Green investing seeks to support business practices that have a favourable impact on the natural environment.

SEC in a statement said that this was disclosed by the Director-General of SEC, Mr. Lamido Yuguda, on Thursday in Abuja, during the Environmental, Social and Governance (ESG) webinar themed, ‘Unlocking Value through ESG Investing organised by the CFA Society Nigeria.’

According to NAN, Yuguda said the issuance of the green bond would go a long way to assist in financing solar energy and other environmental-friendly infrastructure.

What the Director-General of SEC is saying

Yuguda pointed out that aside from the Federal Government and corporate organizations, other tiers of government could also take advantage of the growing appetite for the issuance of bonds to finance relevant environment-friendly projects.

The SEC boss explained, “Companies will also need to continuously disclose relevant information on their adoption of ESG principles. Such information will be critical for investing public to make informed decisions about available investment choices and guide their asset allocation.

“Another important step in the journey of promoting sustainable investment principles is the development of robust sustainability ratings and indices to track companies’ ESG performance. 

”It will also simplify for investors and other stakeholders the process of analysing information disclosed by issuers on sustainable finance.’’

He appealed to issuers, governments and corporates, regulators, exchanges and other stakeholders to collaborate more to develop and issue necessary instruments to attract additional foreign capital into the country adding that the Commission would be willing to collaborate with the Society on Environmental, Social, and (Corporate) Governance (ESG) and other relevant issues. 

President of the CFA Society, Nigeria, Ibikun Oyedeji, said the webinar was organised in continuation of the society’s mandate of promoting global best practices for the investment industry and the engagement would also serve as a stimulus to advocate and promote awareness in the country and Africa for the incorporation of environmental, social and government factors in business decisions.

What you should know

Green funds refer to mutual funds and other ethical investment products that promote socially and environmentally responsible business practices. For example, they can invest in renewable energy projects while avoiding companies with harmful societal impacts.

Often grouped together with socially responsible investing (SRI) or ESG criteria, green investments focus on companies or projects committed to the conservation of natural resources, pollution reduction, or other environmentally-conscious business practices. Green investments may fit under the umbrella of SRI, but they are more specific.



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