Value creation for listed companies takes new turn as NSE, GRI, Dangote Cement drum support for sustainable business practices

DETERMIN ING THE SUC CESS RATE of an entity is fast changing from the ability to just multiply turnover, profit or asset. While these will remain valid and important, issues around the environmental, economic and social impact businesses create with their activities are now becoming germane.

The Nigerian Stock Exchange (NSE), in recognition of these issues, hosted a sustainable workshop in conjunction with GRI and Dangote Cement last Thursday. The NSE said the worship was in order to sensitise financial analyst, communication practitioners and accountants on the importance of responding to new demands resulting from changes in the way businesses now define value creation.

It was also driven by the need to demonstrate the relationship between financial and non-financial functions and the strong synergy between the two in achieving business continuity, the NSE said.

Bola Adeeko, NSE’s divisional head, shared services, explained that the Exchange recognizes that sustainability should not be separate from core business strateg, and added that sustainability involves operating in a way that takes full account of an organisation’s impact on the planet, its people and the future.

To this end, he stated that the NSE will continually seek innovative initiatives to build competence for businesses within its ecosystem.

Describing how it looks to achieve sustainable financial health, Dangote Cement Plc., the NSE’s largest listed company by market capitalization described a business model that delivers strong returns to shareholders whilst creating value in the economies in which it operates.

Ndidi Nnoli, group chief sustainability and governance, Dangote Industries Ltd (DIL) introduced the workshop participants to the Dangote Industries value creation model.

She said the model builds on a 7 Sustainability Pillar Methodology.

Nnoli highlighted the pillars to embrace the financial, operational, institutional, economic, cultural, environmental and social aspect of its business.

“Our work in Dangote Cement Plc showcases the importance of mainstreaming sustainability as the key to engendering holistic business impact, innovation and value creation,” she said.

Speaking further, Nnoli said “the workshop, scheduled during the United Nations 74th General Assembly, supports the implementation of SDGs in Africa by establishing the positive correlation between financial and non-financial (ESG) functions and the potential synergy between responsible business growth and sustainable development.”

The one day workshop saw participants introduced to the concept of sustainability reporting within the context of the GRI Standards and the NSE Sustainability Disclosure Guidelines. It also helped accounting and investment professionals understand the role of impact measurement, innovation and value creation of sustainability reporting in improving corporate financial performance.

Communications practitioners expressed their understanding on recent advances in sustainability reporting with the aim of improving reporting of sustainability issues across the capital market.

The NSE said it realizes the crucial role played by accountants, financial analysts and communications professionals in facilitating behavioral change in support of achieving the Sustainable Development Goals (SDGs)

It designed the session in collaboration with GRI as part of the collaborative partnership to improve the performance and disclosure of Environmental, Social and Governance (ESG) issues across the ecosystem of the NSE.

“The GRI Standards help companies understand and disclose their impacts on the world – and by doing so enable them to manage these impacts and improve ESG performance. Accountancy professionals, financial analysts and communications specialists all have important roles in supporting corporate sustainability reporting, therefore I was delighted by the engagement achieved through this session” said Douglas Kativu, Director, Global Reporting Initiative (GRI) Africa who was the lead facilitator at the workshop.