Financial sector embracing environmental sustainability investment– SEC

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Covenant Umoru

The Securities and Exchange Commission (SEC) reports that the global financial sector is increasingly embracing and investing in environmental sustainability. The Commission gave this assurance to the investing public on Thursday as part of the activities lined up by it during the ongoing 7th edition of the World Investor Week (WIW) being coordinated by the International Organization of Securities Commissions (IOSCO).

Environmental sustainability investment refers to the practice of allocating financial resources towards projects and companies that promote sustainable practices and have a positive impact on the environment. This type of investment is crucial to address the pressing issues of climate change and resource depletion. Studies have shown that sustainable investments can provide competitive financial returns while mitigating environmental risks. This creates a win-win situation for investors, as they can both make a positive impact on the environment and receive financial benefits.

According to the capital market regulator, the global financial sector is increasingly embracing environmental sustainability, and retail investors are choosing to invest in environmentally friendly ways. This trend is anticipated to pick up more steam in the future.

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The extensive discussions surrounding the advantages, challenges, and regulatory recommendations associated with sustainable investments have contributed to this shift. The commission also hinted that it was collaborating with the Financial Literacy Technical Committee (FLTC).

The International Organization of Securities Commissions (IOSCO) launched World Investor Week as a global effort to increase public financial literacy. This year’s week-long campaign centers on the theme of “Investor Resilience, Crypto Assets, and Sustainable Finance,” which has been given high priority by the IOSCO Board in light of the current state of the global markets.

To commemorate the Week, the SEC is hosting a webinar titled “Crypto Assets in the Context of Investor Education and Protection” in collaboration with some stakeholders. The webinar will feature investment experts sharing insights on crypto assets, investor protection, and public policy implications while examining the potential pitfalls for Nigeria.