Prof. Charles Anosike, the Director-General and Chief Executive Officer of the Nigerian Meteorological Agency, NIMET, has called on financial regulators and other stakeholders to integrate climate risk management in their financial reporting.
He made this call recently while speaking as the guest of honour at the Regulatory Roundtable on the implementation of International Sustainability Standards Board sustainability reporting in Nigeria, organised by the Financial Reporting Council of Nigeria in Abuja.
According to Anosike, climate change has become a top priority for leaders in financial institutions.
“Because climate change is a threat multiplier, it calls for a new epistemology of risk that acknowledges not just the uncertainty but also the anthropogenic factors. 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 said.
He noted that due to the strategic importance of climate risk, concerning the transition to net zero, regulators must integrate climate risk management.
“It is incumbent for financial regulators to include environmental factors, such as accounting for precipitation and temperature variability in addition to water availability and the overall climate science that supports adaptation and mitigation measures.
“We thank Dr Rabiu and FRC for making good their promise that NiMet will be at the table for these conversations. The Nigerian Meteorological Agency provides climate science that supports adaptation and mitigation measures and stands ready to support this project,” he declared.
Climate Risk Management (CRM) aims to manage climate change impacts along the entire risk continuum, from short-term extreme weather events to long-term gradual changes.
Based on a climate risk assessment (CRA), combines proven and innovative measures from the field of climate change mitigation and adaptation, disaster risk management, and social protection into a single holistic and participatory framework to avert, minimise, and address Loss and Damage.
