Nigerian Exchange Group Sustainability Disclosure Guidelines

The Nigerian Exchange Group recognizes that the promotion of Environmental, Social and Governance (ESG) principles can facilitate more meaningful engagement between investors and listed companies on ESG related risks and opportunities. In line with this, the Exchange unveiled its Sustainability Disclosure Guidelines on Tuesday, March 19, 2019. The Guidelines articulates a step by step approach to integrating sustainability into business operations and activities, and details indicators that should be considered when providing annual disclosure to The Exchange. The Exchange encourages all Issuers to adopt the practice of sustainability reporting.

Publishing reports in accordance with the Disclosure Guidelines, has commenced.

Facts Behind the Sustainability Report

Styled after the flagship Facts Behind the Listing and Facts Behind the Figures event series, Facts Behind the Sustainability Report (FBSR) is designed to further promote the adoption of sustainable business practices and impact reporting by creating a platform for key capital market stakeholders to engage with reporting organisations on their ESG disclosures.

Partnership with Luxembourg Stock Exchange to promote Green Bonds

The Exchange on Wednesday, 9 October, 2019 signed a Memorandum of Understanding (MoU) with the Luxembourg Stock Exchange (LuxSE) to promote cross-listing and trading of green bonds in Nigeria and Luxembourg. The MoU further establishes an agreement for the two exchanges to collaborate with a view to sharing best practices and organising joint initiatives in their respective markets.

This collaboration reinforces the Exchange’s drive to foster the growth of sustainable finance in Nigeria, a journey commenced as far back as 2016 to develop the inaugural Federal Government Sovereign Green Bond, in partnership with the Federal Ministry of Environment, Federal Ministry of Finance and the Debt Management Office.

Green bond issuers can enjoy the benefit of increased visibility through the cross listing of their securities in Nigeria and Luxembourg.

Building Capacity for Sustainable Business

The Nigerian Exchange Group hosts trainings and workshops on sustainability and reporting to raise awareness on the inherent economic opportunities and social impact in collaboration with the X-Academy.

NGX Net-Zero Programme

NGX Net-Zero Programme, developed in partnership with DEG Impulse gGmbH, a subsidiary of the German Development Finance Institution, DEG – Deutsche Investitions-und Entwicklungsgesellschaft mbH, part of KfW Bankengruppe.

Designed to support listed companies in their journey towards Net Zero while reducing or avoiding 20,000 tons of greenhouse gas emissions, the program prepares the market for climate-aligned capital without imposing rigid mandates. To promote environmentally friendly business practices in the Nigerian private sector, the project partners are establishing the Net-Zero program to achieve net-zero emissions. This includes:

•⁠  ⁠Sensitization of companies on the importance of net-zero practices and communication of the resulting opportunities and challenges.

•⁠  ⁠Supporting companies in the development of their emission reduction plans.

•⁠  ⁠Supporting companies with the registration of carbon credits to offset CO2

the X-Academy.