Businesses must adhere to environmental, social, and governance (ESG) norms to prosper, according to the Chartered Institute of Bankers of Nigeria (CIBN).
Given the benefits inherent in ESG norms, the bankers’ association stated that companies hoping to thrive in the long run should make every effort to adhere to them.
Dr. Ken Opara, the President and Council Chairman of CIBN, made this statement in Lagos during the institute’s 2023 Entrepreneurship Development Programme (EDP)/Public Presentation of Practice Licence.
The chief of CIBN stated that to build a sustainable enterprise, businesses must acknowledge that success is not only determined by financial gains but also by the positive impact they make on the environment, society, and corporate governance. He did this while outlining some strategies on how businesses could take advantage of numerous opportunities in the world of ESG.
According to Opara, ESG principles have formed the cornerstone of contemporary business practices, aiding companies in identifying and mitigating social risks that may affect their operations and brand, among other things.
Using some global data, he emphasized that the last four years have seen a 74% increase in ESG reporting requirements, demonstrating the increasing significance of ESG in corporate operations.
According to him, companies that have demonstrated a commitment to upholding ESG norms are more likely to receive priority support from investors and other important stakeholders, giving them a competitive edge.
According to Opara, the program’s goal is to help its professional members become more adept entrepreneurs and provide them with the tools they need to manage their firms profitably.
He continued by saying that, except for financial intermediation services, holders of practice licenses may advise and assist clients in banking, finance, and related areas by publicly displaying their licenses.
During his presentation on the topic of “Building a Sustainable Enterprise: The Role of ESG,” Dr. Bankole Allibay, a guest speaker and consultant for Social Safeguards at the World Bank Group, stressed the importance of measuring ESG while also highlighting its business prospects.
He claims that it enhances competitive advantage, promotes widespread stakeholder participation, protects enterprises’ future, and makes it easier to monitor and evaluate the success of organizations.
According to Allibay, there are financial concerns, supply chain risks, negative public perception, low staff commitment, and investor apathy when it comes to the costs and consequences of not embracing ESG.
