Environmental, Social and Governance (ESG) considerations have moved from the margins of corporate discourse to the very heart of how modern businesses attract capital, manage risk, and earn public trust.
Globally, ESG is no longer a “nice to have”; it is a defining lens through which investors, regulators, and communities assess corporate purpose and performance.
This message was delivered recently at the ESG State of Play in Nigeria Conference, hosted by the Nigeria Employers’ Consultative Association (NECA), under the theme: “Improving Employers’ Effective Participation, Awareness, and Fostering Dialogue on ESG in Nigeria.”
The conference highlights the importance of equipping employers with knowledge, tools, and platforms to lead Nigeria’s ESG journey.
ESG progress is unfolding against a backdrop of global uncertainty. Recent policy shifts and rising anti-ESG sentiment have led some major US and international banks to exit the UN-led Net-Zero Banking Alliance.
These developments have slowed climate finance momentum and created questions about coordinated global action.
But moments of turbulence often separate symbolic commitment from real conviction. While some institutions retreat, leading organisations are doubling down on business-driven ESG strategies.
Credible action, grounded in strong governance and transparent reporting, is now more essential than ever in order to sustain trust and unlock long-term value.
For developing economies, the stakes are higher. Institutions like the World Bank continue to support climate finance and sustainable development, particularly in emerging markets.
This reflects a clear recognition that global sustainability will fail unless Africa and other developing regions are fully included. ESG is therefore not a Western imposition but a global necessity with local relevance.
In Nigeria, the relevance of the above statement is increasingly evident. The ESG journey has evolved from isolated pilot initiatives to structured regulatory and policy phases. Regulators are driving mandatory sustainability disclosures while laying the groundwork for a national carbon market.
The Financial Reporting Council of Nigeria, the Central Bank of Nigeria, and the Nigerian Exchange Group are aligning local standards with global benchmarks.
Meanwhile, the Climate Change Act and the National Carbon Market Framework are shaping Nigeria’s carbon governance agenda.
Progress is visible across sectors: oil and gas companies are integrating decarbonisation strategies and methane management; the power sector, especially renewables, continues to attract investment; and agriculture and manufacturing are improving traceability, reducing waste, and adopting sustainable production models.
These are practical responses to evolving market expectations and regulatory realities.
Challenges remain. Data quality is uneven, enforcement mechanisms are maturing, and transition risks, especially for SMEs, require careful management. Nevertheless, opportunities abound through green loans, sustainability-linked bonds, and carbon finance instruments.
Employers play a pivotal role in this landscape. They must lead the ESG transition by embedding credible, locally grounded strategies into their operations. Leadership cannot be outsourced or deferred; it is now a business imperative.
At Access Bank, we have institutionalised sustainability with board-level oversight, robust ESG risk management, strategic opportunity identification, and transparent reporting. We are among Nigeria’s early adopters of ISSB standards (IFRS S1 & S2), signalling readiness for high-quality disclosure and governance.
Our actions are tangible: in 2019, we issued Africa’s first Climate Bonds Initiative-certified Green Bond, financing renewable energy, clean transportation, and climate-resilient infrastructure.
We have expanded financial inclusion, scaled green finance, empowered women and SMEs, and implemented environmental initiatives such as large-scale recycling and mangrove restoration across Africa.
Operationally, we continue to reduce our footprint through energy-efficient branches, solar-powered ATMs, automated processes, and comprehensive tracking of Scope 1, 2, and 3 emissions.
Looking ahead, priorities are clear: deepen climate-risk integration, strengthen data quality, and expand green and transition finance to support sustainable growth across Africa.
Still, no single institution can achieve this alone. NECA and other partners are critical in providing practical guidance, advocacy, and capacity-building to help employers navigate ESG expectations locally and globally. Through proactive engagement, sector-specific action, and transparent reporting, Nigerian businesses can maintain trust and competitiveness despite global turbulence.
Ultimately, ESG is about balance: the balance of People, Planet, and Profit. Nigeria’s growth story must be inclusive, resilient, and sustainable. Employers who embrace this approach will not only weather today’s uncertainties; they will shape a future that benefits generations to come.
In this defining moment, retreat is not an option; leadership is.
- Femi Jaiyeola is Chief Risk Officer at Access Bank Plc
