Access Holdings, Dangote Cement, GlaxoSmithKline Consumer Nigeria, PZ Cussons and AxaMansard Insurance were the top five companies that got the highest Environmental, Social, and Governance (ESG) rating for 2023.
The rating framework published by Analysts’ Data Services and Resources, a data and research company, analysed the environmental, social, and governance practices of companies as published on their websites.
“Examining the scores of the 50 best ESG performing companies, the highest average score is recorded by Access Holdings (73 percent), followed by Dangote Cement (71 percent), GlaxoSmithKline (66 percent), PZ Cussons (65 percent) and AxaMansard Insurance (64 percent),” the report said.
It added that companies not only integrate more ESG practices into their operations but also report such practices relatively more than others via their websites.
“Companies not on the list of the top 50 are those with scores lower than Africa Prudentials’ score of 44 percent.”
Companies at the bottom of the list include Abbey Mortgage Bank (47 percent), Stanbic, Cap, Cornerstone Insurance, and Guinea Insurance scored 46 percent respectively.
PharmDeko, Transcorp Hotel, Computer Warehouse Group and MRS Oil got 45 percent apiece while Africa Prudential scored 44 percent. The companies not on the list were those with scores lower than 44 percent
The report also revealed that the average ESG score for all the companies increased to 37.4 percent last year from 36.7 percent in 2022.
“This shows that the average ESG score of Nigerian companies is still below the 50 percent mid-level, and only a marginal improvement has been observed over the last one year.
“Also, the social pillar continues to dominate others, followed by the governance pillar, while the companies score least in their environmental reporting and rating,” it said.
Authors of the report noted that many Nigerian companies are reporting their ESG activities through various channels, such as annual reports, CSR and ESG reports, websites, and regulatory filings, among others.
“The challenge however is how to aggregate and make meaning out of these huge volumes of information in a manner that is useful to investors and policymakers.”
