The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has underscored the transformative potential of sustainable finance for market intermediaries, including corporate trustees. Speaking at the 2024 Business Luncheon of the Association of Corporate Trustees (ACT) held in Lagos, Agama emphasized the necessity for businesses to adopt more sustainable and climate-friendly practices to elevate their operations and client relations.
Dr. Agama, represented by the Director of Market Development at SEC, Tunde Kamali, highlighted the luncheon’s theme, “Sustainable Finance: The Role of Corporate Trustees,” as particularly relevant in addressing contemporary global challenges. He noted that the pressing issues of climate change, resource scarcity, social inequality, and economic instability necessitate a unified commitment to sustainability.
“Our planet faces daunting challenges. Climate change, resource scarcity, social inequality, and economic instability demand a collective effort towards a more sustainable future,” Kamali conveyed on behalf of Agama. He pointed out that corporate trustees have a crucial role in fostering sustainable finance by bridging the gap between investors and issuers, managing assets, and ensuring adherence to legal and fiduciary responsibilities.
Agama’s remarks come at a time when the financial sector globally is increasingly recognizing the importance of sustainability. He argued that embracing sustainable finance principles can provide a new direction for market intermediaries, including corporate trustees, to enhance their service offerings and strengthen client trust.
He elaborated that corporate trustees, as custodians of assets, play a pivotal role in facilitating investments that are not only profitable but also environmentally and socially responsible. “While we cannot overemphasize the pivotal role required of corporate trustees in facilitating sustainable financing, acting as intermediaries between investors and issuers, corporate trustees oversee assets and ensure compliance with legal and fiduciary obligations,” Agama added.
The SEC Director General called on businesses to transition towards sustainability, highlighting that this shift can lead to long-term benefits, including enhanced reputation, risk management, and alignment with global sustainability standards. By integrating environmental, social, and governance (ESG) criteria into their operations, corporate trustees can drive the adoption of sustainable practices across the financial ecosystem.
The luncheon served as a platform for industry leaders, policymakers, and corporate trustees to discuss the strategic integration of sustainable finance into their operations. Participants explored the evolving landscape of sustainable finance, the role of trustees in this paradigm, and practical steps to incorporate ESG factors into investment decisions and asset management.
Agama’s call to action aligns with the broader SEC agenda of promoting sustainable development within Nigeria’s capital markets. By fostering a culture of sustainability, the SEC aims to attract green investments, support economic resilience, and contribute to global efforts in combating climate change.
