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Why businesses in Nigeria need to take sustainable finance seriously

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Many people will have heard of the UN Sustainable Development Goals. But less well known is the concept of sustainability at the root of these goals. Sustainability has recently become a mantra, a philosophy of sorts.

The contemporary interest in sustainability can be traced to the 1987 Brundtland Commission report, Our Common Future. The commission had been set up to find ways for countries to meet their present economic objectives with less negative impact on the physical environment, society, and the ability of future generations to meet their needs. It first gave rise to the Millennium Development Goals, which have now been replaced by the global sustainable goals.

The literary meaning of sustainability simply suggests longevity or the ability to survive under counteracting pressures. While longevity or resilience are integral, they tend to project a somewhat narrow and limited view of sustainability.

The broader view underlines the value of environmental, social, and economic considerations in decision making. It’s directly linked to a quest for development that doesn’t inhibit or harm future generations. It recognises the nested inter-dependency between the economy, society and the environment.

In other words, the success of the economy is dependent on the viability of society. The success of society on the other hand is also linked to the viability of the natural environment. As such, without the environment there will be no society, and without society, there will be no economy. The three are interwoven.

Evidence suggests a positive relationship between sustainability practice and the global competitiveness of a country. This is very much at the heart of the sustainable goals.

Why sustainability is good for business

There’s significant evidence that sustainability is good for business. A recent study by Harvard and London business schools found that corporations that voluntarily adopt sustainability policies have better organisational processes. They thus perform better when compared to a matched sample of companies that adopted almost none of these policies.

It has also been found that if financial institutions

“integrate sustainability criteria in their risk assessment and decision making procedures, they will strengthen their financial soundness”.

Such institutions also

“improve systemic financial stability and contribute to a more ecologically sustainable, just and peaceful world”.

In sum, sustainability is a quest for effectiveness and efficiency. It’s first and foremost rooted in a commitment to reduce negative impacts and increase positive effects. Positive impacts include low carbon emission, fair employment practices, responsible product promotion and good corporate citizenship practices.

Corporate sustainability is therefore a form of self-regulation driven by the values and philosophy of a business.

But for a long time, Nigerian businesses have treated sustainability as a dispensable philanthropic option. The focus of most businesses has been on survival. As such, the pursuit of sustainability is seen as not necessarily good for business.

No longer an option for Nigeria

Nigerian businesses need to go beyond the piece meal approach of corporate social responsibility. There’s at least one green shoot that suggests this process might be underway.

The Nigerian government is committed to implementing a national sustainability roadmap for the financial sector. Backed by the United Nations Environment Programme Finance Initiative, it requires each member of Nigeria’s Financial Services Regulation Coordinating Committee to develop a sustainable development model. This model is for themselves – as organisations – and the industries they regulate.

The committee brings together all the regulatory agencies. These include banking, insurance, securities, pensions, commodities, taxation and fiscal policy sectors. These will be expected to address the integration of environmental and social risks in investment and lending decisions.

According to the UN programme, Nigeria is arguably the first country to adopt this approach to sustainable finance.

Nigeria, like most African countries, didn’t achieve many of the Millennium goals. This is due to poor governance and the inability of many governments to stimulate sustainable development. The sustainable goals present a new lease of life, which the government of President Buhari has committed to.

What should businesses in Nigeria do?

The full spectrum of the Nigerian financial regulatory community is on board. This means that all sources of finance in Nigeria – borrowings and investments – will soon be required to respect and reflect sustainability principles.

At the moment, the Central Bank of Nigeria expects most large projects to meet these requirements. Agriculture, power, and oil and gas are especially in focus. These projects will be required to demonstrate that they do not cause social and environmental harms, in addition to being profitable.

Banks have been mandated to develop robust social and environmental management systems to guide their lending and investment decisions. In practice, the banks are expected to adopt social and environmental management systems similar to those found in the UK and the Global Alliance for Banking on Values.

Very soon, the sustainable finance approach could be extended to all projects, no matter how small. Finance is the lifeblood of any business. There’s a global appetite to incorporate environmental, social and governance risks in lending and investment decisions.

As long as Nigerian businesses want to thrive locally and globally, they cannot escape the current demands of sustainability. The earlier they understand and embrace it, the better for them.The Conversation

Source:bizcommunity

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Philanthropy

McEnies CEO, Dr Olaosebikan Bags Chieftaincy Title, Gimbia Of Durumi

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McEnies Global Communications CEO, Dr. Omolaraeni Olaosebikan has been honoured with the chieftaincy title, Gimbia of Durumi, (meaning Women Leader) in FCT, Abuja, North Central Nigeria. Dr Olaosebikan recorded this latest feat on Friday, March 22, 2024, during the global commemoration of the United Nations World Water Day, where a solar-powered borehole was donated to the Gudu Community in Abuja by the LG Electronics, a global leader in technology and innovation.

The theme of this year is ‘Water for Peace’, emphasizing the vital significance of water in ensuring the stability and prosperity of human existence. Expressing her joy during a chat with some journalists, the integrated marketing communication expert said:

“A chieftaincy title has been conferred on me this last Friday, March 22, 2024, as, GIMBIA of DURUMI, meaning Women Leader. I am so pleased to announce that I am now Dr. Chief (Ms) Omolaraeni Olaosebikan. It’s a huge privilege for me to have been conferred and honoured with the distinguished title, Gimbia Of Durumi in Abuja”. 

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“Durumi (Gbagi) is a small community in the Northern part of Nigeria that has decided to recognize my tenacity to bring some goodness for the first time into their community through a corporate organization and I assure them that I will not disappoint neither will I disappoint humanity in the journey of life. This worthy honour simultaneously came during the drilling of a solar-powered borehole for the people of Durumi, Gudu. The CSR initiative was part of the well-thought-out programme to celebrate the United Nations World Water Day”.

“I so much love and appreciate everyone who has been part of the feat, particularly the traditional institution in Gudu community, FCT Abuja. I feel so elated to extend my appreciation to the District Head, Garki, Chief Tanko Zekeri, as well as Chief Iya Bawa and others.” She said.

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Corporate Citizenship

World Water Day: LG Donates Solar-powered Borehole to Abuja Community

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LG Electronics, a global leader in technology and innovation, joined the Federal Ministry of Water Resources and Sanitation in the global celebration of the United Nations World Water Day by donating a solar-powered borehole to the Gudu Community in Abuja. The theme of this year is ‘Water for Peace’, emphasizing the vital significance of water in ensuring the stability and prosperity of our world.

In situations where water is limited or contaminated, or where access is unequal or nonexistent, tensions can escalate between communities and nations. It is crucial to proactively tackle water-related issues to prevent conflicts and encourage collaboration for sustainable water management. A series of events took place to celebrate this special day from the Peace walk around FCT to the special press conference with all the relevant partners, international NGOs, Federal Ministries representatives, and private corporations.

Speaking at the commissioning of the solar-powered borehole, the Minister, Prof. Joseph Terlumun Utsev said; “We are extremely happy to celebrate yet another World Water Day with everybody and in particular with the donation of this borehole which is most significant of the celebration. The Gudu Community is grateful for this”.

“All year round we sensitize and celebrate the day to bring attention to one of the leading environmental issues, the scarcity of water.” Water is life, and we cannot even imagine our life without water. Water means a lot to us more than just quenching our thirst, but it plays the role of a vital component of human development; This day provides us an opportunity to think about this issue and how we can make a difference”

The Minister additionally said “Around 2 billion people around the world do not have access to clean and safe drinking water, and approximately 3.6 billion people – 46% of the world’s population – lack adequate sanitation services, according to a new United Nations World Water Development Report released. This is a major contributor to the spread of waterborne diseases such as cholera, typhoid, and diarrhea”

Prof. Utsev added, “In Nigeria, approximately 60 million people lack access to safe water sources, leading to numerous health challenges and impeding socio-economic development.” Hence we need to keep appealing to corporate organizations such as what LG Electronics has done today to provide good drinking water for vulnerable communities like Gudu and all across the country so we can gradually reduce the numbers”

Also at the event, the Managing Director, LG Electronics, Mr. Hyoung Sub Ji thanked the Ministry for the opportunity to collaborate with them to contribute to the community. He said the relevance of LG’s slogan cannot be over-emphasized which is “Life’s Good” With good drinking water people can live and have a good life. This is what has prompted us to do this” he said.

Mr. Ji advised “This year, we at LG are proud to align with the theme of Water for Peace. We urge other corporate organizations to collaborate with relevant institutions in combating the scarcity of clean water, which tragically leads to the premature deaths of vulnerable children and adults nationwide. Together, through partnership and collective action, we can make a significant impact on ensuring access to safe and clean water for all. Let us work hand in hand towards a future where every individual has the basic human right to clean water, promoting health, peace, and prosperity in our communities.”

Giving a thank you speech, the leader of the community, Alhaji Jubril Musa said, “We are very happy for this water as it solves more than half of our challenges. We will ensure we safeguard the borehole to last longer for us in the community. We thank LG Electronics and the Ministry for the gesture”

Present at the celebration are WaterAid, United Nations International Children (UNICEF), Education Fund (UNICEF), UNESCO, Action Against Hunger, Gillmor Engineering Nigeria Limited, FORDMAX Nig. Limited, CGC Nigeria Limited, Food and Agricultural Organization, (FAO), Borehole Drillers Association of Nigeria (BODAN), Nigeria Hydrological Services Agency (NIHSA), and other relevant ministry representatives.

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LG Electronics continues to demonstrate its commitment to environmental sustainability and social responsibility through initiatives like this. Clean and easily accessible water is indispensable for economic growth, public health, and environmental integrity. By giving priority to water as a means for peace, we can strive towards a more balanced and harmonious global community.

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NGOs - SDGs

Laila Bastati on the importance of diversity in shaping Africa’s future

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Laila Bastati, Chief Commercial Officer, APO Group (Source: APO Group)

As we observe International Women’s Month with the theme of ‘Inspire Inclusion,’ it is essential to contemplate the importance of diversity within organizations and its crucial role in shaping a more equitable and inclusive society. This year’s theme calls on us to inspire others to understand and value women’s inclusion, not just for the benefit of women but for the advancement of the African continent. 

Women across Africa face unique challenges, from cultural barriers to limited access to resources and opportunities. However, despite these difficulties, they continue to defy the odds, breaking barriers, and making significant contributions to their communities and economies. As we recognise such achievements, it’s crucial to underline the importance of promoting the role of women in driving more diverse, competitive, and future-looking workspaces.

“At APO Group, we’re proud of our extremely diverse team of professionals from all over the world. The diversity we see in age, gender, locations, backgrounds, and experience all combines to forge a formidable team that brings the best of APO Group to our clients. In an industry that has achieved, in recent years, a good gender balance, we strive to lead by example, leveraging our platform to advocate for broader gender equality and diversity initiatives, aiming to inspire other organizations to follow suit.” said Laila Bastati, Chief Commercial Officer, APO Group.

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“For us, such diversity reflects a leadership that values and promotes the unique perspectives and contributions of women, at all levels of the organisation. It also clearly demonstrates that we’re an organisation that values inclusivity and equality, and that the different voices and ideas of our team reflect a unique understanding of the African markets in which we operate. The result of being firm proponents of an environment in which all contributions are valued, and where collaboration is part of our culture, is that innovation and creativity come naturally.” Laila Bastati Added.

The importance of embracing diversity

Embracing diversity, especially gender diversity, is essential for any organization aiming to create a balanced, fair, and dynamic working environment.There’s no doubt that for any type of organisation, embracing diverse perspectives and expertise, highlighting achievements and success stories, and advocating for equal opportunities and recognition, are all aspects that contribute to a more equitable and inclusive environment where everyone has the chance to succeed based on merit and talent. 

Successful companies intentionally cultivate diverse leadership at all levels. While this may initially appear coincidental, the process of building diverse teams is a deliberate and strategic endeavour that underscores a commitment to creating spaces where women’s leadership and insights drive innovation and strategic decision-making.

What makes a diverse team?

Firstly, promoting diversity in leadership is crucial. Actively recruiting, developing, and promoting the right female candidates into leadership positions ensures women’s perspectives are represented at the decision-making table. Secondly, reviewing and revising policies to ensure they are gender-neutral and promote equal opportunities for all employees is essential. Thirdly, providing equal access to training, mentorship, and career advancement opportunities, with a particular focus on supporting women, is key.

Additionally, creating a supportive work environment and nurturing a culture of inclusion where all employees feel valued, respected, and supported is paramount. Regularly monitoring and evaluating diversity metrics to track progress and identify areas for improvement is also important. Finally, embracing a culture of work meritocracy where individuals are recognised and rewarded based on their skills, contributions, and performance, rather than on gender, race, or other characteristics, completes the foundation of a diverse team.

In the context of this special period of the year, I urge organizations across Africa to recognize and harness the unique strengths women bring to the table, not only to promote gender equity, but to ensure these organizations will continue to have a place in the workspace of tomorrow.

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