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After the 2008 global financial crisis, regulators around the world began asking harder questions about risks that had gone unrecognised and about whether the systems in place were effective.
At home in Nigeria, that moment of reflection marked the beginning of a deliberate integration of sustainability and ESG considerations into core business and risk management frameworks.
Phase One: Building Awareness Through the Sustainable Banking Principles
In 2012, under the leadership of the Central Bank of Nigeria, the Nigerian Sustainable Banking Principles (NSBPs) were introduced. At the time, sustainability integration was rarely a boardroom priority. It was misunderstood and often dismissed.
The NSBPs changed that.
They challenged financial institutions to look beyond profit and consider the environmental and social implications of their lending, investment, and operational decisions. For the first time, sustainability was framed as risk instead of charity.
By 2018, there was a noticeable shift. Risk managers at leading financial institutions across the country, who would typically focus on credit risk, market risk, operational risk, liquidity risk etc., were now concerned about the environmental and social implications of business decisions in the short and long term.
This was the catalyst for the surge in sustainability workshops and partnerships with global institutions like the International Finance Corporation and the African Development Bank. Sustainability reports became the norm, and awareness was achieved.
However, Gaps Still Existed.
Despite the progress made, sustainability was uneven in perception and practice.
In many industries, sustainability was still considered a “banking thing”. Sectors like Oil & Gas, Manufacturing, and Construction often confine sustainability to HSE checklists or CSR initiatives.
Sustainability meant different things in different organisations. To some, it was solely about tree-planting campaigns. To others, it meant annual donations to the less privileged.
Some of the structural gaps of sustainability revealed include a lack of cross-industry integration, which limited systemic impact. The lack of enforcement meant that non-banking organisations still had to be persuaded to engage.
Reporting was fragmented, with varying approaches and limited standardisation, making it difficult to juxtapose reports from Nigerian organisations against those of their international peers.
Phase Two: The Creation of a Global Baseline
In June 2023, the International Sustainability Standards Board introduced two landmark standards:
1. IFRS S1 – General Requirements for Sustainability-related Financial Information
2. IFRS S2 – Climate-related Disclosures
This gave sustainability reporting a global language, and Nigeria aligned quickly. The Financial Reporting Council of Nigeria was the first African regulator to adopt the standards, setting a phased roadmap toward mandatory compliance by 2028.
The IFRS standards introduced exactly what the ecosystem needed:
- A global baseline for comparability
- Mandatory integration into financial reporting
- Cross-industry relevance beyond banking
- A focus on financial materiality, linking ESG to enterprise value
- Stronger governance and accountability structures
This made sustainability measurable, auditable, and financially consequential.
The Next Phase: From Compliance to Competitive Advantage
As of today, organisations are no longer conflicted about complying with sustainability standards. Rather, they are concerned about how best to lead, differentiate, and execute their sustainability strategies.
Globally, the sustainability landscape is increasingly shaped by innovation, competition, and accountability. This shift is evident in the growing number of strategic conversations around climate stress-testing models, transition finance structures, AI-powered ESG reporting engines, carbon accounting systems, and supply chain verification technologies.
The aim is not just to comply with ESG standards, but to build the systems, capabilities, and intelligence that will define the future of sustainability integration. Three forces shaping this phase are:
- ESG Innovation as Strategy: Organisations are investing in technology, analytics, and expertise to differentiate themselves from their contemporaries.
- Global Comparability and Capital Flow: Capital is increasingly flowing toward companies with credible, data-backed sustainability strategies, giving them a competitive advantage.
- Enforcement and Accountability: Regulators are strengthening oversight, requiring not only credible ESG disclosures but also demonstrable implementation. Failure to adopt key sustainability practices can lead to financial losses, regulatory sanctions, and reputational implications.
The implication is clear: sustainability is no longer optional. it is foundational.
Coronation Merchant Bank’s Unwavering Commitment to Sustainability
Our sustainability journey at Coronation is not new. Rather, it is evolving. Our story began with the NSBPs, where environmental and social risk considerations became part of how we think, decide, and operate within our ecosystem.
Today, we are building on that foundation with a structured approach to IFRS S1 and S2 adoption. In 2025, we took the following steps to deliberately embed sustainability more deeply into our systems:
Sustainability Working Group
We established a cross-entity team with representatives from Legal, Risk Management, Finance, Compliance, and other key functions working with the Sustainability team to drive implementation and oversight.
Structured Training: We developed a training plan for key preparers and working group members to build internal capacity for IFRS-aligned reporting.
Gap Assessment & Implementation Plan: We conducted a comprehensive IFRS S1 & S2 adoption gap assessment and developed a Sustainability Policy and Implementation Plan, serving as our IFRS-aligned disclosure policy.
Governance Alignment: We reviewed and updated ESG Risk Policies, Enterprise Risk Management (ERM) frameworks, and related governance documents to align with IFRS S1 and S2.
Standardised Reporting: We initiated updates to Standard Operating Procedures (SOPs) and the development of standardised reporting templates to support data collection, internal controls, and disclosures.
Double Materiality Assessment: We initiated a detailed double materiality assessment to identify and prioritise sustainability and climate-related risks and opportunities.
Technical Advisory: We engaged FRCN-approved consultants to provide guidance and support throughout the adoption process.
For us at Coronation, these are not just compliance activities. They are investments in capability, transparency, and long-term resilience. We remain focused and committed to embedding ESG into the core of how we allocate capital, manage risk, and create long-term value for those we serve.
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