The Director General of the Nigerian Meteorological Agency (NiMet), Prof. Charles Anosike, has urged financial regulators to integrate climate risk management into their financial reporting. He emphasized the importance of this initiative while addressing stakeholders during the Regulatory Roundtable on International Sustainability Standards Board (ISSB) sustainability reporting in Nigeria. The event, organized by the Financial Reporting Council of Nigeria (FRC), took place on Thursday, August 15, 2024.
Prof. Anosike praised the FRC and its Executive Secretary/CEO, Dr. Rabiu Olowo, for organizing the roundtable. He highlighted the significance of their efforts, stating, “This is a great feat by the FRC and Dr. Rabiu Olowo. I have been in the sustainability profession for quite a while, and we couldn’t achieve this over ten years ago.”
Discussing climate change, Prof. Anosike said it has become a critical priority for financial leaders. He explained that climate change acts as a threat multiplier, necessitating a new approach to risk management. “The systemic risk of climate change explains why it is in the interest of regulators to ensure that climate risks, both current and future, are identified and disclosed by institutions,” he remarked.
Given the strategic importance of climate risk, Prof. Anosike emphasized that regulators must integrate climate risk management to support the transition to net zero. He added, “It is essential for financial regulators to account for environmental factors, including precipitation, temperature variability, and water availability, in addition to the overall climate science that supports adaptation and mitigation measures.”
Concluding his remarks, Prof. Anosike expressed gratitude to Dr. Olowo and the FRC for ensuring NiMet’s involvement in the discussions. He reaffirmed NiMet’s commitment to providing climate science that supports adaptation and mitigation efforts.