In a groundbreaking address at the 2024 Business Luncheon of the Association of Corporate Trustees (ACT) in Lagos, Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), has underscored the transformative potential of sustainable finance, projecting it to burgeon into a colossal $2.6 trillion market.
Speaking through SEC’s Director of Market Development, Tunde Kamali, Dr. Agama urged investors and market intermediaries to seize the opportunities presented by sustainable finance principles.
He emphasized the critical role of corporate trustees in navigating this burgeoning field, positioning them as pivotal intermediaries between investors and issuers.
Dr. Agama highlighted the urgent need for businesses to adopt sustainable practices amid global challenges such as climate change, social inequality, and economic instability.
He urged trustees to integrate Environmental, Social, and Governance (ESG) criteria into investment strategies, thereby aligning financial objectives with sustainable development goals.
Quoting a recent Deloitte report, Dr. Agama pointed out that the demand for sustainable investing exceeds current offerings by investment advisors, signaling vast untapped potential within the market.
He stressed that addressing this gap presents significant opportunities for financial intermediaries to capitalize on.
In collaboration with other key stakeholders including Ms. Patience Oniha, Director-General of the Debt Management Office (DMO), and Omolola Iyinolakan, President of ACT, Dr. Agama reaffirmed SEC’s commitment to spearheading sustainable financing initiatives.
He called for a paradigm shift in traditional roles towards sustainable finance, urging stakeholders to proactively engage in shaping a resilient and eco-conscious financial landscape.
The event, themed “Sustainable Finance: The Role of Corporate Trustees,” concluded with a resounding call-to-action for stakeholders to embrace sustainability as a cornerstone of future economic prosperity, guided by robust global standards and frameworks.