The Lagos State Government, through the State Resilience Office, LASRO has outlined a strategic framework for integrating global sustainability reporting standards across public institutions and private sector stakeholders.
The framework, aligned with the Financial Reporting Council of Nigeria’s roadmap for adopting the International Sustainability Standards Board, ISSB standards, is designed to position Lagos as a leading destination for sustainable investment and resilient economic growth in Africa.
Speaking during a meeting with her staff, the Lagos Chief Resilience Officer, Dr. Folayinka Dania, outlined the objectives of the sustainability reporting drive, which include standardising Environmental, Social and Governance (ESG) reporting, improving transparency and accountability, and enabling the state and businesses operating within it to access global ESG funds.
She said the framework would also help identify physical and transition climate risks affecting Lagos’ urban infrastructure, coastal areas and broader economy, while ensuring that such risks are proactively managed.
According to her, the initiative would establish clear accountability across state agencies, state-owned enterprises and private corporations operating in Lagos, with entities expected to disclose how sustainability considerations are incorporated into corporate strategy, resource allocation and long-term planning.
She noted that the Lagos State Government was leading by example by aligning public infrastructure strategies, including flood management, clean transportation and waste management, with transparent sustainability objectives.
Under the proposed Risk Management Disclosure framework, organisations would be required to disclose how they identify, assess, prioritise and monitor sustainability and climate-related risks.
The framework would also require robust data collection systems to prevent greenwashing and strengthen the integrity of sustainability reports. Key metrics would include greenhouse gas emissions, energy consumption, water usage and labour and governance indicators.
The initiative would further promote materiality and data assurance through internal controls and verifiable data systems capable of preparing organisations for independent limited and reasonable assurance audits.
The sustainability reporting roadmap has three implementation phases. The first is the ongoing voluntary adoption phase, which encourages organisations to build reporting infrastructure and conduct readiness assessments. Some private sector organisations, including MTN, have already begun engaging with the process.
The second phase, projected to commence in 2028, will introduce mandatory compliance for listed companies, public interest entities and state-owned enterprises.
The third phase, expected from 2030/2031, will extend mandatory sustainability reporting requirements to small and medium-sized enterprises.
The state said the economic implications of the framework include potentially lowering borrowing costs for green projects, encouraging green bond issuance, improving access to sustainable finance and safeguarding critical infrastructure against increasing climate-related risks.