The Central Bank of Nigeria has said there is an urgent need for for robust ESG (Environmental, Social, and Governance) practices in response to global climate challenges as the Financial Institutions Training Centre (FITC) launched its Sustainability & ESG Institute as a hub for industry leaders, academics, policymakers, and changemakers to collaborate on sustainable practices
Speaking at a summit, deputy governor of Financial Systems Stability at the Central Bank of Nigeria (CBN) and Board Chairman of the Financial Institutions Training Center (FITC), Philip Ikeazor, stated the need to focus on advancing ESG practices.
Emphasising recent extreme weather events worldwide, including floods and heatwaves, Ikeazor underscored the critical role of ESG in fostering business resilience, value creation, and economic stability.
The FITC Sustainability & ESG Institute was part of efforts to promote environmental, social, and governance (ESG) principles across Africa. He praised FITC for addressing these issues and highlighted Nigeria’s progress through the Nigerian Sustainable Banking Principles, which aim to manage environmental and social risks, enhance economic stability, and promote effective ESG governance. Despite challenges like data quality and resource limitations, the CBN remains committed to advancing ESG practices.
Managing director and chief executive of the FITC, Chizor Malize, whilst commenting on the institute said “global awareness of ESG issues is growing, and there is an urgent need for organisations to adopt sustainable strategies.
According to her, the Institute will empower organisations to integrate ESG principles through cutting edge research, comprehensive training programs, and impactful initiatives, ensuring long-term value creation for stakeholders.
Malize acknowledged the FITC Board and the Advisory Board members for their contributions to shaping the Institute’s strategies. She emphasised that the success of the Institute will be measured by its tangible impact and the strength of its partnerships.
“The work we do here at the FITC Sustainability and ESG Institute will shape the future of our organisations and contribute to building a more sustainable, equitable, and prosperous world for all” she stated.
Senior Partner at Kenna Partners, Professor Fabian Ajogwu, highlighted the crucial role of governance in ESG. He emphasised integrating ESG discussions into board meetings and strategic planning, ensuring ESG principles are central to decision-making. “Effective governance involves embedding ESG considerations into board meetings and strategy formulation,” said Professor Ajogwu.
He stressed that robust governance practices are vital as companies grow, aligning these practices with the organisation’s purpose and strategic goals. Professor Ajogwu also noted the importance of considering regional contexts in implementing governance practices, acknowledging that local nuances are crucial for sustainable outcomes
