IFRS hails Nigeria’s progress in sustainability reporting

The Worldwide Monetary Reporting Requirements Foundation has acknowledged the strides made in sustainability reporting in Nigeria.

In its newest report, titled ‘Progress on Company Local weather-related Disclosures – 2024 Report,’ the IFRS Foundation highlighted the Monetary Reporting Council of Nigeria for its important contributions to sustainability reporting within the nation.

Commenting on the report on Friday in an announcement on its web site, FRC mentioned, “This recognition from the IFRS Foundation underscores Nigeria’s dedication to enhancing sustainability practices and aligns with world efforts to deal with local weather change by means of improved company transparency and accountability.”

In keeping with PwC, sustainability reporting data the influence of an organization’s actions on environmental, social, and governance points. It allows stakeholders to know extra clearly the impacts of an organization’s enterprise actions on the setting and society and to evaluate the dangers and alternatives corporations face, or that are provided to them. The rising significance of sustainability reviews is because of the truth that buyers and different stakeholders are calling on corporations to reveal extra details about their sustainability actions and environmental, social, and governance methods.

The IFRS report detailed Nigeria’s developments in climate-related company disclosures amongst Nigerian corporations, emphasising the transition from the Activity Pressure on Local weather-related Monetary Disclosures suggestions to the adoption of Worldwide Sustainability Requirements Board Requirements, particularly IFRS S1 and S2.

Nigeria is recognised as considered one of 30 jurisdictions, representing 57 per cent of world gross home product and contributing over 50 per cent of greenhouse gasoline emissions which might be adopting or planning to implement ISSB requirements.

A key spotlight of the report is the FRC’s Roadmap Doc, which outlines a phased implementation technique for sustainability reporting.

This method contains early adoption and voluntary participation from 2024 to 2027, transitioning to necessary adoption by 2028. The roadmap additionally integrates the monetary reporting course of with particular timelines for assurance, beginning with restricted assurance within the third yr of reporting and advancing to affordable assurance for all sustainability-related issues beginning within the sixth yr.

The Adoption Readiness Working Group of Nigeria, led by the FRC, unveiled a complete roadmap for the adoption of ISSB Requirements in March 2024.

This roadmap highlights 4 phases of adoption, commencing with voluntary compliance from all teams of Nigerian reporting entities starting within the fiscal yr 2024.

Public curiosity entities, excluding authorities and governmental organisations, can be obligated to implement ISSB Requirements from the fiscal yr 2028, with necessities extending to small and medium-sized enterprises by fiscal yr 2030.

Notably, Nigeria was the primary nation in Africa to declare its intention for the early adoption of the ISSB at COP 27 in Egypt in 2022. Moreover, 4 Nigerian corporations—MTN, Seplat Vitality, Access Bank, and Fidelity Bank—have revealed their inaugural monetary reviews utilising IFRS S1 and S2 sustainability reporting requirements for the 2023 monetary yr.