SEC Joins IOSCO-ISSB Collaboration For Sustainability Standards Implementation

In response to the growing demand for standardised and reliable sustainability reporting, the Securities and Exchange Commission (SEC) Nigeria has joined the Growth and Emerging Markets Committee Network (GEMC).

This initiative aligns with other jurisdictions’ efforts to enhance sustainability practices in capital markets.

The GEMC Network was established to facilitate the effective adoption of the International Sustainability Standards Board (ISSB) Standards across growth and emerging markets.

By becoming a part of this network, Nigeria will gain access to valuable resources and support aimed at building capacity in supervisory and enforcement aspects of the ISSB Standards. Key resources made available through the IFRS Foundation, such as the Jurisdictional Guide and educational materials, will assist in assessing market readiness and advancing the implementation of these standards.

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Speaking at the IOSCO Annual Meeting in Doha, Qatar, the director-general of SEC Nigeria, Dr. Emomotimi Agama, highlighted the importance of GEMC in nurturing sustainable, resilient capital markets in emerging economies.

He emphasised that Nigeria’s membership in GEMC is a significant move towards aligning the nation’s capital markets with global sustainability standards.

Agama stated, this membership will enhance Nigeria’s credibility in the global capital markets, attracting foreign investments and promoting economic growth.

He noted that GEMC’s emphasis on sustainability will allow Nigeria’s capital markets to contribute positively to the country’s sustainable development goals, including reducing carbon emissions and protecting the environment.

He further added, “joining GEMC will provide our securities regulators with access to best practices and guidelines on sustainable finance, allowing us to develop a more robust regulatory framework.”

Agama also discussed the benefits of SEC Nigeria’s membership in IOSCO, which sets international standards for securities regulation, pointing out that “this collaboration would enable Nigeria to actively contribute to the development of these global standards while facilitating international cooperation and information exchange. This aligns with IOSCO’s commitment to market integrity, ensuring high standards of transparency, fairness, and investor protection in Nigeria’s capital markets.”

The ISSB Standards, published in June 2023, address the demands of investors for reliable and comparable sustainability-related information. These standards enable consistent and transparent sustainability disclosures, meeting the informational needs of investors and other market participants. Following an in-depth review, IOSCO endorsed the ISSB Standards for capital market use in July 2023, inviting its members to explore ways to adopt or apply these standards effectively.

Recognising the need for reliable sustainability reporting, IOSCO launched the Sustainable Finance Task Force (STF) in 2020 to address gaps in corporate sustainability disclosures. Following the draft publication of the ISSB’s sustainability standards in 2022, IOSCO provided extensive feedback to ensure alignment with its criteria. This collaborative process underscored IOSCO’s commitment to promoting effective and transparent sustainability reporting across global markets.

Overall, the establishment of the GEMC Sustainability Network signifies a positive advancement towards more sustainable capital markets globally.