
Environmental, Social, and Governance (ESG) is the lens through which organizations assess their sustainability and ethical impact. It spans environmental stewardship, social responsibility, and corporate governance, providing a framework to guide decisions, strengthen accountability, and drive long-term performance.
At ESG Elevate Corner, we track ESG developments in Nigeria and around the world, one report at a time, delivering insights, updates, and analysis to help readers stay informed and make responsible, forward-looking decisions.
Global sustainability momentum is picking up speed as corporations, financial institutions, and policymakers deepen their climate commitments despite an increasingly complex regulatory landscape. Landmark developments in November 2025 illustrate both the breadth and depth of action: Google’s 200,000-ton reforestation-based carbon removal deal in Brazil, the International Capital Market Association’s (ICMA) launch of a Climate Transition Bond label, and IKEA Group’s forest restoration project; all emphasize a growing corporate focus on decarbonization and nature-positive initiatives. However, companies from Amazon to Boeing are expanding clean-energy adoption and sustainable supply chains, signaling that net-zero ambition is once again rising after a pause in 2024.
A recent Accenture study supports the trend; nearly 90% of companies now explicitly link emissions reduction to business value. Although the shift is not merely symbolic, it demonstrates how climate initiatives are increasingly entwined with competitiveness; with firms recognizing that sustainability performance can directly influence market positioning, investor confidence, and operational efficiency. Yet, this momentum unfolds amid political friction, such as U.S. state-level opposition to the EU’s sustainability disclosure regulations and ongoing delays in Europe’s deforestation law, highlighting the tensions between economic, regulatory, and environmental imperatives.
Policy developments remain consequential. In Europe, member states reached a compromise on the EU’s 2040 climate agenda, aiming for a 90% reduction in greenhouse gas emissions. Achieving this required concessions, including delayed carbon pricing and expanded reliance on international carbon credits. On the global stage, COP30 in Belém concluded without committing to a fossil-fuel phaseout, reflecting persistent geopolitical divides despite advocacy from more than 80 countries. Nevertheless, financial markets signal confidence; Morgan Stanley’s latest survey shows institutional investors plan to increase allocations to sustainable funds, largely driven by the strong performance of ESG-aligned investments. Banks and financiers, including Crédit Agricole, Deutsche Bank, and the European Investment Bank, are scaling transition finance, while new European sustainable fund categories emerge to channel capital toward decarbonization opportunities.
Companies also appeared to refine their internal sustainability strategies through the Double Materiality Assessment (DMA). This provides a dual lens: evaluating both the environmental and social impacts of corporate operations (“inside-out”) and assessing how sustainability risks and opportunities may influence financial performance (“outside-in”). This framework ensures companies identify material ESG topics across the value chain, a critical step for compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). While DMA offers a pathway to integrate sustainability into core strategy, challenges remain, as many firms are conducting these assessments for the first time and must navigate third-party assurance requirements and evolving regulations, such as California’s SB 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Act) climate disclosure laws.
Market dynamics further reinforce the urgency. Consumer and corporate clients increasingly prioritize sustainable suppliers, with 56% of B2B buyers ready to offer preferential contract terms to companies with strong sustainability credentials. Initiatives like the Net Zero Asset Managers (NZAM) coalition are also shaping capital allocation, enabling asset managers to align portfolios with global decarbonization goals while meeting their fiduciary responsibilities.
Closer to home, Nigeria’s sustainability and energy sectors saw a surge of dialogue and collaboration. The Energy Sustainability Conference (ESC 2025), held in Lagos in November, convened leaders from oil, gas, renewables, and power sectors to explore governance, investment, and collaboration strategies for Africa’s energy future. Complementing this, the International Conference on Environmental Biotechnology and Sustainability and the International Conference on Sustainable Energy Economics, Security, and Policy offered forums for researchers, policymakers, and industry experts to advance innovations in environmental protection, energy transition, and resource management.
Collectively, these events highlight a simple truth: ESG and sustainable energy are no longer peripheral considerations; they are central to competitiveness, investment attraction, and long-term resilience.
As global and local actors navigate regulatory uncertainty, market pressures, and technological opportunities, one message is clear: sustainability is no longer optional. It is a strategic imperative shaping investment decisions, operational priorities, and corporate governance. Firms that integrate ESG into their DNA, using frameworks like DMA, investing in nature-positive projects, and leveraging financial innovation, will not only meet regulatory obligations but also secure a competitive edge in the low-carbon economy of tomorrow.