BY OLAPEJU OLUBI
The Director General and Chief Executive Officer of the Nigerian Meteorological Agency (NiMet), Prof. Charles Anosike, has called on financial regulators and stakeholders to prioritise the integration of climate risk management into their financial reporting frameworks.
His remarks came on Thursday, 15th August 2024, as he served as the guest of honour at the Regulatory Roundtable on the implementation of International Sustainability Standards Board (ISSB) sustainability reporting in Nigeria.
The event was organized by the Financial Reporting Council of Nigeria (FRC) and held in Abuja.
During his address, Prof. Anosike applauded the Financial Reporting Council of Nigeria and its Executive Secretary/CEO, Dr. Rabiu Olowo, for spearheading this significant initiative.
He highlighted the importance of the roundtable in bringing climate risk to the forefront of financial discussions.
“This roundtable marks a pivotal achievement for the FRC and its visionary leadership under Dr. Rabiu Olowo,” Prof. Anosike remarked.
“I have been deeply involved in the sustainability profession for many years, and this critical conversation was long overdue. We struggled to get this done over a decade ago, so today’s progress is indeed a milestone.”
Prof. Anosike further elaborated on the importance of addressing climate risks within financial institutions.
He emphasized that climate change is no longer just an environmental issue but a multifaceted threat that amplifies existing vulnerabilities across various sectors. “Climate change is a threat multiplier,” he noted.
“It necessitates a new epistemology of risk, one that not only embraces the uncertainties but also recognizes the human-induced factors contributing to this global crisis.
The systemic risks posed by climate change underscore why it is in the best interest of regulators to ensure that financial institutions identify and disclose both current and future climate risks.”
In his speech, Prof. Anosike underlined the strategic significance of climate risk management, particularly in the context of the global transition to a net-zero economy.
He urged financial regulators to embed environmental factors—including considerations of precipitation and temperature variability, water availability, and broader climate science—into their risk management frameworks.
“It is incumbent upon financial regulators to embrace a more comprehensive approach to risk management—one that incorporates climate-related factors into financial reporting,” Prof. Anosike stated.
“This includes accounting for the variability in precipitation and temperature, water resource availability, and the overall climate science that underpins adaptation and mitigation measures.
“I commend Dr. Rabiu Olowo and the FRC for ensuring that NiMet is at the table for these essential conversations. The Nigerian Meteorological Agency is ready to provide the climate science that supports these adaptation and mitigation efforts and will continue to support this critical initiative.”
Professor Anosike’s call to action underscores the growing recognition of climate risk as a pivotal factor in financial stability and resilience.
As global climate challenges intensify, institutions in Nigeria and beyond must adapt their strategies to address these emerging threats.
The partnership between NiMet and FRC symbolizes a critical step forward in ensuring that climate risks are systematically managed and transparently disclosed, helping to safeguard the future of the Nigerian economy and its financial systems.
