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Sustainable finance has the potential to create $2.6trn market – SEC

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Nigeria’s cryptocurrency market valued at over $400m - SEC DG

The Director General of Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has urged investors and market intermediaries to embrace sustainable finance, which has the potential to grow into a $2.6 trillion market.

Agama made this call at the 2024 Business luncheon of the Association of Corporate Trustee (ACT) in Lagos, themed “Sustainable finance: The role of corporate trustees”.

Represented by the Director, Market Development of SEC, Tunde Kamali, the DG emphasized the importance of sustainable finance principles in growing the market.
He noted that the principles of sustainable finance offer a new vista for market intermediaries, including trustees, to take their businesses and client relationships to a higher level.

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Agama urged businesses to move towards more sustainable and climate-friendly solutions, citing the daunting challenges facing the planet, including climate change, resource scarcity, social inequality, and economic instability.

He emphasized the critical role of corporate trustees in facilitating sustainable financing, acting as intermediaries between investors and issuers, and overseeing assets while ensuring compliance with legal and fiduciary obligations.

The SEC DG encouraged trustees to align investors’ interests with sustainable objectives by incorporating ESG criteria into investment strategies, guiding capital towards projects and initiatives that promote sustainability.

He stressed the 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.

“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.

“According to a 2023 report by Deloitte, the demand for sustainable investing is not yet fully met by investment advisors. Based on multiple surveys, investors have a strong interest in sustainable investing but want more support from their advisors.

“According to the report, the demand for sustainable investing remains largely unfulfilled by investment advisors.

“By implication, this is a clear indication that there are lots of untapped opportunities that financial intermediaries can leverage.
“It is also an indication of the gap required to be filled by intermediaries and the opportunities being thrown away”, he noted.

Agama urged stakeholders to move beyond traditional roles, especially in sustainable finance, and assured them of the SEC’s commitment to championing sustainable financing.

The Director-General, Debt Management Office (DMO), Ms. Patience Oniha, and the President of ACT, Omolola Iyinolakan, also spoke at the event, emphasizing the importance of sustainability and the role of trustees in protecting investors’ interests

 

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