NiMet DG urges integration of climate risk management in financial reporting
The Director General and Chief Executive Officer of the Nigerian Meteorological Agency (NiMet), Prof. Charles Anosike, has called on financial regulators and stakeholders to incorporate climate risk management into their financial reporting frameworks.
He made this appeal while speaking as the guest of honour at the Regulatory Roundtable on the implementation of International Sustainability Standards Board (ISSB) sustainability reporting in Nigeria. The event was organized by the Financial Reporting Council of Nigeria (FRC) on Thursday, 15th August 2024.
Prof. Anosike praised the efforts of the FRC and its Executive Secretary/CEO, Dr. Rabiu Olowo, for convening the roundtable, describing it as a significant milestone. “This is a great feat by the FRC and the Executive Secretary/CEO, Dr. Rabiu Olowo. I have been in the sustainability profession for quite a while now and we couldn’t get this done over ten years ago,” he said.
Highlighting the growing importance of climate change for financial institutions, Prof. Anosike emphasized the need for a new approach to risk management that takes into account the uncertainties and human factors driving climate change.
“Climate change has become a top priority for our leaders in financial institutions. Because climate change is a threat multiplier, it calls for a new epistemology of risk that acknowledges not just the uncertainty but also the anthropogenic factors. The systemic risk of climate change explains why it is in the interest of regulators to ensure that climate risks, both current and future, are identified and disclosed by institutions,” he stated.
He further noted the critical role that climate risk management plays in the transition to a net-zero economy, underscoring the necessity for regulators to integrate environmental considerations such as precipitation, temperature variability, and water availability into their reporting processes. Prof. Anosike expressed gratitude to Dr. Olowo and the FRC for ensuring NiMet’s involvement in these important discussions.
“It is incumbent for financial regulators to include environmental factors such as accounting for precipitation and temperature variability in addition to water availability and the overall climate science that supports adaptation and mitigation measures. We thank Dr. Rabiu and FRC for making good their promise that NiMet will be at the table for these conversations. The Nigerian Meteorological Agency provides the climate science that supports adaptation and mitigation measures and stands ready to support this project,” Prof. Anosike concluded.
The roundtable marks a significant step towards integrating climate risk into Nigeria’s financial reporting, aligning with global sustainability standards.
