EXAMINING ESG PRACTICES IN NIGERIA'S CORPORATE ENVIRONMENT

Abstract

The dynamics of climate change, technological advancements, population
increase and goal of attainment of the Sustainable Development goals(SDG’s)
of the United Nations amongst others has in recent times expanded the
responsibilities of business entities beyond profit-making and Corporate Social
Responsibility and into a sphere whereby their impacts on the Environment
better assess the value of a company, their social relationship with its
stakeholders, employees and consumers and their interactions with the
government. ESG Reporting has become an integral part of a company’s
assessment of progress and impact. This article examines the existing legal
framework in Nigeria for the incorporation of ESG principles by business
entities in their activities and the increasing drive by the Government and
Regulatory bodies for compliance with ESG reporting and practice by
companies. The article concluded that the incorporation of ESG principles in
the business activities of companies and transparent ESG Reporting is pivotal
to the stability and growth of businesses and the nation’s economy. The article
further recommended that emphasis be placed on compulsory reporting by
companies and that a standard form for reporting should be adopted by the
different sectors for better evaluation.