CIBN seeks compliance with ESG standards for success

The Chartered Institute of Bankers of Nigeria (CIBN) has stressed the need for businesses to comply with environmental, social and governance (ESG) standards to succeed.

The bankers’ body said that businesses that wished to succeed in the long run must do everything in their power to comply with ESG standards given the inherent benefits.

President/Chairman of Council, CIBN, Dr Ken Opara, said this at the institute’s 2023 edition of the Entrepreneurship Development Programme (EDP)/Public Presentation of Practice Licence, in Lagos.

While highlighting some strategies on how businesses could take advantage of numerous opportunities in the world of ESG, the CIBN chief said in building a sustainable enterprise, businesses must recognise that success is not measured solely by financial gains but also by the positive impact they make on the environment, society and corporate governance.

Opara said ESG principles have become the bedrock of modern business practices, which among other things, have helped businesses identify and manage social risks that could impact their operations and reputation.

Giving some global statistics, he stressed that ESG reporting mandates have grown by 74 per cent in the last four years, indicating the growing importance of ESG in business operations.

“It also gives businesses a competitive advantage, this is because investors and other key stakeholders are more likely to prioritise support for organisations that have displayed a commitment towards maintaining ESG standards,” he said.

The entrepreneurship programme, Opara said is aimed at sharpening the entrepreneurial skills of its professional members and empowering them to successfully run their businesses.

He added that the public presentation of the practice license enables the holders to consult and render services in banking, finance and allied matters to clients except for financial intermediation services.

Speaking on the theme, ‘Building a Sustainable Enterprise: The Role of ESG’, Guest Speaker and Consultant, Social Safeguards, World Bank Group, Dr Bankole Allibay, while highlighting the business opportunities in ESG, he emphasised why businesses should measure ESG.

According to him, it helps to track and assess businesses’ progress, encourages broad participation of stakeholders, improves competitive advantage and safeguards businesses’ future, among others.

On the risks and cost of not adopting ESG, Allibay said it leads to financial risks, bad public reputation, low employee commitment, investors’ apathy and supply chain risks.