Stakeholders Seek Stronger Board Roles In ESG Implementation

Governance experts have called for stronger board-level leadership to drive the effective implementation of Environmental, Social and Governance (ESG) practices in Nigeria.

They noted that while awareness of ESG principles had improved across organisations, the country continued to face an execution gap that was limiting measurable impact.

They made the call on Sunday in Lagos via a communique from the Chartered Institute of Directors Nigeria (CIoD) corporate governance and sustainability forum.

Dr Oluwasoromidayo George, Director, Corporate Affairs and Sustainability, Coca-Cola HBC, said that while ESG was widely acknowledged in Nigeria, it remained inconsistently embedded across organisations.

George noted that although reporting standards were improving, the impact of ESG initiatives was still shallow, as sustainability efforts were often driven by Corporate Social Responsibility (CSR) units rather than corporate boards.

“We do not have an awareness gap; we have an execution gap. ESG must move from the margins into the core of business strategy.

“The cost of inaction on ESG is rising, as capital increasingly flows toward ESG-aligned businesses, while regulators and global partners demand stricter compliance,” she said.

George added that climate and social risks had become critical business risks, stressing that corporate reputation now directly influences valuation.

According to her, ESG is no longer optional; it is a determinant of survival and growth.

She urged company directors to embed ESG into corporate strategy, link it to risk management and long-term value creation, and demand measurable key performance indicators.

George said what the board prioritises, management executes, adding that organisations should begin by taking concrete ESG decisions at their next board meetings.

The managing director, Construct Green Consult LLC, described ESG as a core business Sanmi Olowosile,  strategy that places people at the centre of sustainability efforts.

Olowosile said prioritising human capital would enable organisations to unlock value, profitability and long-term prosperity.

He emphasised that board leadership was critical to achieving ESG outcomes, urging directors to define clear ESG ambitions, demand accountability through measurable targets, and integrate ESG risks into corporate risk registers.

He also called for linking executive compensation to ESG performance metrics to ensure commitment at the highest levels.

In his remarks, Mr Adetunji Oyebanji, President, CIoD, said ESG had evolved from a peripheral concern to a fundamental necessity for modern enterprises.

Oyebanji noted that sustainability considerations were reshaping the global economic landscape and had become integral to strategic decision-making, risk management and long-term stakeholder value.

He stated that, despite growing awareness, ESG in Nigeria was still often treated as a compliance requirement rather than a driver of innovation and resilience.

“We must be candid about the current state of play. There are still significant gaps between policy intent and institutional practice,” he said.

Oyebanji noted that Nigeria’s operating environment was characterised by evolving regulations, climate risks and increasing social inclusion demands, with stakeholders expecting alignment with global sustainability standards.

He stressed that strengthening ESG leadership at the board level was essential to bridging the gap between policy and execution.

The CIoD president urged directors and senior executives to treat ESG as a core fiduciary responsibility, necessary to ensure corporate sustainability and long-term success.