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The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has emphasized the importance of sustainable finance as a means to elevate business operations and client relationships for market intermediaries, including corporate trustees. Dr. Agama urged businesses to adopt more sustainable and climate-friendly solutions.
Speaking at the 2024 Business Luncheon of the Association of Corporate Trustees (ACT) in Lagos, themed ‘Sustainable Finance: The Role of Corporate Trustees,’ Dr. Agama, represented by the Director of Market Development at SEC, Tunde Kamali, highlighted the critical relevance of this year’s theme.
“Our planet faces daunting challenges such as climate change, resource scarcity, social inequality, and economic instability, all of which require a collective effort towards a more sustainable future,” Kamali noted.
He emphasized the crucial role of corporate trustees in sustainable financing, explaining that trustees act as intermediaries between investors and issuers, overseeing assets and ensuring compliance with legal and fiduciary obligations. By integrating Environmental, Social, and Governance (ESG) criteria into investment strategies, trustees can direct capital towards projects that promote sustainability.
“We have a collective responsibility to address the demands of the sustainability market, position ourselves ahead of the green supply curve, and adhere to global standards and frameworks,” Kamali stated. “As intermediaries, issuers, investors, or regulators, we all play a role in facilitating the transition to sustainable and low-carbon economies.”
Dr. Agama highlighted the vast opportunities in sustainable finance, which has the potential to grow into a $2.6 trillion market, benefiting both the planet and creating substantial wealth.
He urged the Association of Corporate Trustees to lead in developing expertise in sustainable finance and creating an informed and accountable investment environment.
At the event, Ms. Patience Oniha, Director-General of the Debt Management Office (DMO), emphasized the protective role of trustees for investors. “As we expect an increase in securities from both the government and private sector, trustees need to provide the required services to ensure investor confidence. The association must build capacity to deliver as these securities enter the market,” Oniha stated.
ACT President Omolola Iyinolakan noted the evolving trend of sustainability over the past decades, encompassing environmental, social, and governance considerations. “Sustainability is not just an imposed concept; it involves policy foundations across sectors striving for harmony between development, environmental preservation, and social equity,” Iyinolakan explained.
In conclusion, the SEC and ACT underscored the importance of sustainable finance as a pathway to addressing global challenges while creating new opportunities for growth and investment.
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