The International Financial Reporting Standards(IFRS) Foundation has acknowledged the strides made in sustainability reporting in Nigeria.
This was said in its latest report, titled ‘Progress on Corporate Climate-related Disclosures – 2024 Report,’ where the IFRS Foundation highlighted the Financial Reporting Council of Nigeria for its significant contributions to sustainability reporting in the country.
“This recognition from the IFRS Foundation underscores Nigeria’s commitment to enhancing sustainability practices and aligns with global efforts to address climate change through improved corporate transparency and accountability,” Financial Reporting Council (FRC) said while commenting on the report.
The IFRS report detailed Nigeria’s advancements in climate-related corporate disclosures among Nigerian companies, emphasising the transition from the Task Force on Climate-related Financial Disclosures recommendations to the adoption of International Sustainability Standards Board Standards, specifically IFRS S1 and S2.
Nigeria is recognised as one of 30 jurisdictions, representing 57 per cent of global gross domestic product and contributing over 50 per cent of greenhouse gas emissions that are adopting or planning to implement ISSB standards.
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The report highlighted FRC’s Roadmap Document which outlines a phased implementation strategy for sustainability reporting.
This approach includes early adoption and voluntary participation from 2024 to 2027, transitioning to mandatory adoption by 2028. The roadmap also integrates the financial reporting process with specific timelines for assurance, starting with limited assurance in the third year of reporting and advancing to reasonable assurance for all sustainability-related matters starting in the sixth year.
The Adoption Readiness Working Group of Nigeria, led by the FRC, unveiled a comprehensive roadmap for the adoption of ISSB Standards in March 2024.
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