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  • BAT Nigeria partners ESG Forum on sustainability

    BAT Nigeria partners ESG Forum on sustainability

    To champion  sustainability, BAT Nigeria is partnering with the 2024 Pan Africa Private Sector ESG Forum.

    The partnership is  aimed at driving conversations around sustainability and specifically tackling climate change.

    The Forum serves as a premier platform uniting private and public sector leaders across Africa to discuss and advance ESG practices by fostering dialogue among industry experts, policymakers, and sustainability advocates.

    Managing Director, BAT West and Central Africa,Yarub Al-Bahrani, said: “Sustainability is not just a tagline for us, it is front and center of everything we do at BAT.

    “For us at BAT Nigeria, we believe that through collaboration and shared knowledge, we can create impactful solutions that address the pressing challenges of our time, paving the way for a more equitable and environmentally responsible future for Nigeria and Africa as a whole.”

    He explained Africa’s Private Sector is at a critical juncture, with the continent experiencing rapid industrialisation and economic expansion. As such, the conversation surrounding Environmental, Social, and Governance (ESG) principles is becoming increasingly relevant.

    He said: “Companies are more so, recognising their crucial role in contributing to sustainability and understand that sustainable practices are essential for long-term profitability and social responsibility.

    “Businesses in Nigeria are aligning their operations with various sustainability frameworks and goals, such as the Paris Agreement on Climate Change and the United Nations Sustainable Development Goals (SDGs).

    “By so doing, organisations aim to contribute to a more sustainable economic landscape that prioritises environmental stewardship, social equity, and sound governance practices.”

    According to Al-Bahrani, BAT Nigeria exemplifies this evolution in ESG commitment through a robust sustainability agenda which is anchored on ambitious ESG goals and targets.

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    “For example, from an environmental perspective, the Company aims to achieve net zero Green House Gas emissions by 2050 and has made significant strides in reducing its carbon footprint through the installation of a solar power plant at its state-of-the-art factory in Ibadan, Oyo State,” he stated.

    “This plant generates 3,800kwh daily, and 1,350,000kwh per year and contributes to a reduction in carbon emissions by approximately 600 tons annually. The factory has also maintained its track record of zero waste sent to landfill since 2020.”

    Beyond its environmental initiatives, he noted that the organisation is dedicated to fostering diversity and inclusion.

    “To this end, the company has implemented comprehensive policies and programs promoting gender equality and opportunities for underrepresented groups. As part of this, the Company has a clear goal to achieve 40 per cent female representation in senior leadership positions by 2025 and their success is evident: as of the third quarter of 2024, 43 per cent of senior leadership positions are held by women.

    The MD emphasised that BAT Nigeria’s leadership in sustainability and collaboration with the ESG Forum exemplify the core principle of SDG 17: Partnerships for the Goals.

    “Through tangible action, BAT Nigeria is setting a compelling example for organisations across Africa, driving for a sustainable future,” he added.

  • Regulators, stakeholders urged to collaborate on ESG

    Regulators, stakeholders urged to collaborate on ESG

    As Nigeria continues on the adoption of environmental social governance (ESG) principles, sector regulators, businesses, and stakeholders have been urged to collaborate effectively in the attainment of sustainable development goals.

    Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama stated this during the Regional Training and Capacity Building programme for securities regulatory authorities in Luanda, Angola recently.

    ESG principles represent a set of criteria that socially conscious investors and stakeholders use to evaluate a company’s operations and impact on society and the environment

    The SEC DG stated that issuing clear guidelines, building capacity, and monitoring disclosures will ensure that the adoption of ESG principles translates into tangible benefits for the environment, society, and the economy.

     “As Nigeria continues to develop economically, integrating ESG principles not only helps mitigate risks but also enhances long-term resilience and contributes to sustainable development goals.

     “Through these efforts, Nigeria not only mitigates risks but also positions itself as a responsible and attractive destination for sustainable investments, contributing significantly to the global sustainable development agenda” he stated.

    Agama said that ESG considerations in Nigeria are gaining traction as businesses and stakeholders recognize the importance of sustainable practice due to significant environmental challenges, including pollution, deforestation, erosion, flood and waste management issues adding that companies are adopting practices such as renewable energy investments, water conservation, and eco-friendly manufacturing processes to mitigate environmental impact.

    “On the Social angle, companies are focusing on community engagement, labor rights, and diversity. Companies are encouraged to promote fair labor practices, support local communities through CSR (Corporate Social Responsibility) initiatives, and inclusive workplaces.

    “Governance is crucial for transparency and accountability. Nigerian companies are improving board diversity, enhancing corporate governance structures, and adhering to regulatory requirements to build trust with stakeholders” he stated.

    The SEC DG said ESG initiatives play a crucial role in promoting sustainable development in Africa for several compelling reasons such as Environmental Conservation, Social Impact, Governance and Transparency, Resilience to Climate Change, and Attracting Responsible Investments and Compliance with International Standards.

    He stated that the current landscape of ESG in Africa is evolving rapidly, driven by various factors including regulatory developments, investor demand, and local initiatives and disclosed that challenges to widespread ESG adoption in Africa include: Limited awareness, Capacity constraints and Varying regulatory environments across countries.

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    Agama however said that, these challenges present opportunities for: Capacity building, Knowledge sharing andCollaboration among stakeholders to drive sustainable development.  

    The SEC Boss said that the Securities and Exchange Commission (SEC), Nigeria issued rules and guidelines that listed companies must follow regarding corporate governance practices, including disclosure requirements related to sustainability and ESG factors.

    According to him, “The SEC regulates the Nigerian capital market and plays a pivotal role in setting guidelines for sustainability disclosures. In 2021, SEC approved the Guidelines on Sustainability Financial Principles for the Nigerian Capital Market. The objectives of the guidelines include to stimulate a resilient, competitive and sustainable capital market, and to improve corporate governance practices.

     “The guideline requires public interest/ listed entities to integrate ESG considerations into their operations and decision-making processes to avoid, minimize or offset negative impacts.

     “The Guidelines set out 5 Principles for entities in the capital market: Environmental, Social, and Governance (ESG) Considerations, Collaborative Partnership and Capacity Building, Financing of priority sectors of the economy, Human rights, women’s economic empowerment, job creation, and financial inclusion and Reporting and Disclosures” he said.