The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has stated that the principles of sustainable finance, opens a new vista for all market intermediaries, trustees inclusive, to take their businesses and client relationships to a new and higher level.
He therefore urged businesses to move towards more sustainable and climate-friendly solutions.
The SEC DG stated this at the 2024 Business luncheon of the Association of Corporate Trustees (ACT) held in Lagos, with the theme, 'Sustainable finance: The role of corporate trustees.
Represented by the director, Market Development of SEC, Tunde Kamali said that the theme of this year's luncheon is quite pertinent.
He noted that "our planet faces daunting challenges. Climate change, resource scarcity, social inequality, and economic instability demand a collective effort towards a more sustainable future."
He explained that "while we cannot over emphasise 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.
"As market professionals, trustees play a critical role of aligning investors' interests with sustainable objectives, and by incorporating ESG criteria into investment strategies, they can guide capital towards projects and initiatives that promote sustainability."
He also emphasised that "we have a collective responsibility of addressing the demands of the sustainability market, positioning ourselves ahead of the green supply curve while adhering to global standards and frameworks.
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"As intermediaries, issuers, investors or regulators, we all have a role to play in facilitating the transition of economies towards sustainable and low-carbon growth."
Dr. Agama pointed out that "so many opportunities lie in this new field with capacity to grow to a staggering $2.6 trillion market. As much as it is for the betterment of our planet, so much wealth can be made along the way."
He said the Association of Corporate Trustees should take the lead in fostering expertise in sustainable finance, fostering an investment environment that is both knowledgeable and accountable".
Speaking at the event, the director-general, Debt Management Office (DMO), Ms. Patience Oniha said, "as we know, the trustees stand in a position where they really protect the interest of investors.
"As we expect these securities to come on a large scale, not just from the government but from the private sector, we expect that the trustees should be able to provide the required services so that investors can be comfortable with them. As an association, you need to have that capacity to be able to deliver as those securities hit the market."
The president of ACT, Omolola Iyinolakan, noted that, "over the last couple of decades, one of the trends which has evolved is the concept of sustainability. And sustainability is not just imposed, it is the environmental, social, governance considerations and policy foundations across sectors, striving for the harmony between planning, advancement, environmental preservation and social fairness."
