The Lagos State Government has outlined a strategic framework for integrating global sustainability reporting standards across public institutions and private sector organisations in the state.
The initiative, led by the Lagos State Resilience Office (LASRO), is aligned with the Financial Reporting Council of Nigeria’s roadmap for adopting the International Sustainability Standards Board (ISSB) standards.
The Chief Resilience Officer, Doctor Folayinka Dania, stated this while briefing staff of the Lagos State Resilience Office, explaining that the framework is aimed at positioning Lagos as a destination for sustainable investment and resilient economic growth.
Dania said the sustainability reporting drive would focus on attracting sustainable capital, standardising Environmental, Social and Governance, ESG, reporting, improving investor confidence and enabling the state to access global ESG funds.
She said the framework would help identify physical and transition climate risks affecting Lagos’ urban infrastructure, coastal areas and wider economy.
According to her, the initiative would also strengthen transparency and accountability across government agencies, state-owned enterprises and private companies operating in Lagos.
“Under the framework, organisations will be required to disclose how sustainability considerations are incorporated into their corporate strategies, resource allocation and long-term planning”.
She said the Lagos State Government was leading by example by aligning its infrastructure strategy in areas such as flood management, clean transportation and waste management with measurable sustainability goals.
On risk management, Dania said “entities would be expected to disclose how they identify, assess, prioritise and monitor sustainability and climate-related risks, enabling organisations to proactively address vulnerabilities rather than respond after disasters occur”.
She stressed the importance of reliable data in preventing greenwashing, noting that reporting would require standardised metrics covering greenhouse gas emissions, energy consumption, water use, labour and governance.
The framework would also promote internal controls and verifiable data systems to prepare organisations for independent limited and reasonable assurance audits.
Dania said the roadmap would be implemented in three phases. The first is the ongoing voluntary adoption phase, which encourages organisations to develop reporting systems and conduct readiness assessments, with some private-sector organisations, including MTN, already participating.
The second phase, expected to commence by 2028, will introduce mandatory compliance for listed companies, public-interest entities and state-owned enterprises.
While the third phase, projected for 2030/2031, will extend mandatory sustainability reporting to small and medium-sized enterprises.
The Resilience Office said the standardised reporting framework could lower borrowing costs for green projects, encourage green bond issuance and help safeguard critical infrastructure against increasing climate-related risks.
