What you need to know about business sustainabilityin Nigeria

April 2016

By Adiya Atuluku

What’s business sustainability anyway?

Business sustainability is all about balance!Businesses that can meet their needs of today without compromising theirs’ & others’ needs of the future are sustainable businesses

The key lies in balancing the triple bottom-line

People + Planet + Profit

A quantitative research revealed that about half of the people surveyed do not understand the concept of ‘business sustainability’.

But most of those that understand the concept care about it and are willing to take action for sustainability…given enabling circumstances.

A qualitative survey showed that of those that don’t understand the concept, they think of sustainability in terms of longevity of profit alone.

Do Nigerians know and care about sustainable businesses?

Yes

No

I don't get

39%

6%

55%

Poll ran on Twitter with 897 respondents, March 2016

All things being equal, would you champion sustainability in your office?

Yes

No

I don't get

42%

8%

50%

Poll ran on Twitter with 661 respondents, March 2016

All things being equal, would you choose a business practicing sustainability first?

What are some of the laws that you should know? (1/5)

United Nations Convention on Climate

Change

Is an environmental treaty negotiated in 1992 with the aim of reducing greenhouse gas (GHG) emissions to stabilize concentrations in the atmosphere. It sets a framework by which

countries can negotiate their own GHG emission

limits

Montreal Protocol on Substances that

Deplete the Ozone Layer

Is an international treaty aimed at

protecting the ozone layer by phasing out

the production of substances that are

responsible for ozone depletion

The Equator Principles

Is a voluntary set of standards for identifying,

assessing and managing

environmental and social risk in project

financing

ISO 14000

This family of standards contains tools that can be used by companies

to manage their environmental

responsibilities. In particular, ISO

14001:2015 sets criteria for a company’s

Environmental Management System.

Some Key International treaties

What are some of the laws that you should know? (2/5)

Other Key International treaties

• Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal

• Stockholm Convention on Persistent Organic Pollutants • Rotterdam Convention on the Prior Informed Consent

Procedure for Certain Hazardous Chemicals and Pesticides in International Trade

• International Convention on Oil Pollution Preparedness, Response and Co-operation

• International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage

• Convention for Co operation in the Protection and Development of the Marine and Coastal Environment of the West and Central African Region

• Oil in Navigable Waters Act

• Protocol Concerning Cooperation in Combating Pollution in case of Emergency

• African Convention on the Conservation of Nature and Natural Resources

• International Convention for the Safety of Life at Sea• International Convention on Civil and Political Rights• Constitution of the International Labor Organization• International Convention to combat Desertification in those

Countries Experiencing Serious Drought and/or Desertification, particularly in Africa

• Convention on Biological Diversity • Vienna Convention for the Protection of the Ozone Layer • United Nations Convention on the Law of the Sea • Global Reporting Initiative (GRI)• United Nations Environment Program – Finance Initiative

What are some of the laws that you should know? (3/5)

National Policy on Environment, 1989

This describes guidelines for

securing a quality & healthy environment,

and maintaining or restoring ecosystems for the preservation

of biodiversity

National Guidelines and Standards for

Environmental Pollution Control in

Nigeria, 1991

This serves as a guideline for

monitoring and controlling industrial and urban pollution (air, noise, waste, water, soil, etc.)

Pollution Abatement in Industries, Industries Generating Wastes Regulation, 1991

This imposes restrictions on the

release of toxic substances, and

states requirements monitoring pollution

from industrial machineries, etc.

Environmental Impact Assessment Act, 1992

The Act makes EIA mandatory for any major development

project that may have negative environmental and social impacts, and

describes the procedure for risk assessment and

reporting

Some Key National Laws

What are some of the laws that you should know? (4/5)

Other Key National Laws & Regulations

• National Environmental Standards And Regulation Enforcement Agency (NESREA) Act 2007

• National Effluent Limitation Regulation, 1991 • Management of Hazardous and Solid Wastes

Regulation, 1991• Minerals and Mining Act, 2007• Quarries Act, 1969 • Explosives Act, 1967• Nature Conservation and Environmental

Development Organization, 2001• Factories Act, 1987• Mineral Oils (Safety) Regulations, 1997• Criminal Code • Forestry Act, 1958 • Land Use Act, 1978

• The Endangered Species Act, 1973 • Harmful Waste (Special Criminal Provisions) Act, 2004• Petroleum Act, 2004• Niger-Delta Development Commission (NDDC) Act, 2004• National Oil Spill, Detection and Response Agency

(NOSDRA) Act 2006 • Water Resources Act, 2004 • National Environmental Regulations 2009 (for various

sectors, e.g. telecoms, manufacturing, mining, food, apparel, construction, seas, electronics, automobiles, pharmaceuticals, etc.)

• Hydroelectric Power Producing Areas Development Commission (Establishment, Etc.) Act, 2010

• National Policy on Climate Change, 2012• National Energy Policy, 2003

What are some of the laws that you should know? (5/5)

Other interesting developments in the Nigerian regulatory space are…

Nigerian Electricity Regulatory Commission mandated 50% renewable energy procurement in

electricity sector in 2015

A National Adaptation Strategy and Plan of Action for Climate Change Nigeria (NASPA- CCN) was

developed in 2011

The banking industry developed the Banking Sustainability Principles in 2012 for assessment of

Environmental & Social Risks before financing

Energy Commission of Nigeria and UNDP developed the Renewable Energy Master Plan in

2005

FEC approved the National Renewable Energy and Energy Efficiency Policy (NREEEP) in 2015 for the

electricity sector

Nigerian government has committed to localizing and implementing the 17 Sustainable

Development Goals (SDGs), as well as adopting ISO 26000 (Social Responsibility)

Who are some of the key players that you should know? (1/2)

The key players (shown in no particular order) in the sustainable business space shown below are from both private and public sectors

Amina J MohammedCurrent Minister of Environment,

former SA to Sec-Gen of UN & former SSA to President on MDGs

Adejoke Orelope-AdefulireCurrent Senior Special

Advisor to the President on the SDGs

Dr. Chris OgbechieFounder & Director of First

Bank Sustainability Centre of Lagos Business School

Benedict Bengioushuye AyadeCurrent Cross River state governor,

former senator, Chairman of Ecological Fund, & Environmental

Inventor

Chris EdehExecutive Director of African

Alternative Energy Association & Grassroot Empowerment

Initiative

Ahmed SandaFounder of Ashawa Consults &

pioneer environmental consultant working with public

& private sectors

Ini OnukFounder of Thistle Group & experienced sustainability &

development consultant, & convener of Sustainable Conversations

Nnimmo Bassey Architect, renowned

environmental activist & former Chairman of Friends of the

Earth International

Who are some of the key players that you should know? (2/2)*Please note that this list is by no means exhaustive & is in no particular order.

Toyin OlakanpoLawyer & child rights activist, founder of CSR Children & the

popular weekly tweetchat on SDGs

Bekeme MasadeSocial entrepreneur, PR specialist, and Executive Director of CSR-In-Action

Ken EgbasPresident of the Social

Enterprise Report & Awards (SERAs), the top CSR honors

Dr. Aisha Usman MahmoodSpecial Advisor to CBN Governor on sustainable banking & former

DG of National Center for Women Affairs

Priscilla Achakpa Environmental activist and

executive director of the Women Environmental Programme (WEP)

Esther AgbarakweSA to Minister of Environment &

experienced environmental activist & development professional

Ugochi AnyakaAward-winning environmental

journalist & editor of EcoNigeria online magazine

Femi Oye Co-founder of SMEFunds &

founder of first carbon trading network in Nigeria

The key players (shown in no particular order) in the sustainable business space shown below are from both private and public sectors (cont’d)

What are some of the companies that you should watch? (1/2)

Some Nigerian corporations taking business sustainability seriously are…

Click the logos to learn more about each organizationEach of them report regularly on sustainability activities

There still needs to be a shift from CSR to business sustainability on a strategic level in many of these companies

But there are many more companies that carry out Corporate Social Responsibility (CSR)

These companies have specifically put sustainability in their business models, as well as reporting according to international standards

And these companies help by providing expertise…

What are some of the companies that you should watch (2/2)?

Click the logos to learn more about each organizationThese are some of the 31 companies in the coalition

The Coalition will work together to take action for sustainable development across Nigeria and share lessons learnt

These companies came together voluntarily to form the Nigerian Business Coalition for Sustainable Development

The Coalition is affiliated with the World Business Council for Sustainable Development.

Why do these companies bother?

Manage risks that may affect their current and future operations, especially with external pressures from climate change affecting ecosystems & societiesMake sure that they are in line with any laws and regulations that govern all the areas they operate in

Meet the changing needs of their customers, especially as the public is getting more aware of sustainability issues

Make their employees proud that they work with them and that they are contributing meaningfully to societyHave a culture of learning and innovation to solve society’s problems

Manage their reputation with the communities they operate in & gain recognition e.g. SERA Awards

Get access to finance from investors & organizations that care about sustainability Increase their chances of a strong, long-term financial performance

What’s happening in Nigeria that should you know about?

Click the news screenshots to learn more

Sustainable development has been on

the news lately!

What trends should you take note of?

Nigeria has the right laws in place, but more effort is required from regulators to monitor and enforce these laws accordinglyMany corporates, especially those with foreign head offices, are taking business sustainability more seriously, and getting more strategic with their CSR programmes. But many sustainability/CSR practitioners in companies are from a marketing or corporate communications background; there needs to be a shift towards more sustainability officials playing a more strategic roleThe banking industry is leading business sustainability in Nigeria by coming together to develop their banking sustainability principles

SMEs in the sustainability space are characterized by sustainable products (instead of processes or CSR projects), particularly renewable energy (with focus on solar)There is a growing awareness of the need for business sustainability amongst CEOs, politicians and state governors

The concept of business sustainability is catching on with the public, but it’s only about half way through

Renewable energy seems to be the most promising sector in the sustainable development space – with a lot of foreign investment & political support. Watch out for product innovations and more indigenous companies in this space.

Final Words

The 17 Sustainable Development Goals have gained a lot of support in Nigeria, first with the agreements at COP21 and later with federal and state governments engaging senior advisors on

the SDGs. There are also conversations around this in the business space, notably the Sustainable Convos and the online #SDGSaturdays. For once, people are watching and talking.

It is advised that to contribute meaningfully, businesses should assess their operations to find out which of these sustainability issues are material to them, and then empower their Sustainability Officers to incorporate these into the business strategy. The organizations can then work towards

implementation through partnerships with internal stakeholders, suppliers, similar or complimentary companies, relevant associations, and the Nigerian government.

People | Planet | Profit

Adiya Atulukuwebsite: adiyaatuluku.com| twitter: @adiyaatuluku| email: adiyaatuluku@gmail.com