Socially responsible investors put principles before profit. They choose stocks of corporations known for fair and sustainable practices. Environmental protection, animal rights and the absence of workplace discrimination are in the spotlight. Only some companies in Nigeria have praiseworthy policies. So, which stocks are sustainable?
- Dangote Cement
Dangote, a construction and manufacturing giant, follows sustainable procedures throughout its project cycle. Its policies bring benefits to the environment, community, and economy. This is an exception, as the industry, in general, is responsible for massive pollution and depletion of natural resources.
So, what exactly does the company do? Dangote is committed to green growth — development through eco-friendly activities. Its corporate culture is data-centric and sustainable.
The staff collect data via Microsoft SharePoint to ensure its integrity. The group provides full-time study leave for its employees, which is a rare benefit. In 2018, it provided training for almost 10,000 employees across sites and headquarters.
Another example is the company’s safe work initiative. It reduces the frequency of accidents and near misses. Meanwhile, employees providing customer service commit excellence across value chains.
The company supports small and medium enterprises. It has paid over 3 billion nairas for 125 trucks for its distributors and provided a 5-year payback period. Finally, the company’s key subsidiary, Dangote Cement, has a range of sustainable operations.
First, it repurposes its own waste, which is used to generate power for the kiln. Secondly, fractional mineral traces from waste are used instead of primary minerals in cement production. The shares of Dangote Cement are some of the most sustainable. If you invest through the Forextime Forex trading app, they will make a great addition to your portfolio.
- Sterling Bank
The sustainable policies of Sterling Bank allow it to prevent credit fraud and reduce its own carbon footprint. They include systems for environmental management and management of social risks. The company has a range of energy-saving projects.
The bank recycles its waste in cooperation with a recycling agency and waste management services of Lagos. It abides by the United Nations Declaration on Human Rights. The campaign includes competitions between creative entrepreneurs focused on the use of recycled materials. The winner receives 1 million nairas for their startup.
The bank has reduced its carbon footprint by turning to renewable energy. Its branches in Nigeria and abroad use more sustainable sources of power. The company has been involved in solar and hybrid power projects. At the moment, such policies have been implemented by 10 branches.
Aside from environmental sustainability, the bank has improved its social and financial impact. All stakeholders receive regular updates, and the company boosts engagement through social media. Sterling Bank has an impressive 3.1% deposit market share and a 12.6% capital adequacy ratio.
- Fidelity Bank
Fidelity Bank abides by the international bill on human rights. It also complies with the principles of banking sustainability of the Central Bank of Nigeria. These include promotion of financial inclusion, women’s empowerment through inclusive workplace culture, and minimization of environmental impact.
The bank’s mission is to make financial services accessible to all groups of customers. Its operations contribute to the reduction of poverty in Nigeria and sustainable economic development overall. The Environmental Social
Governance practices for the basis of the bank’s policies; the lending services and decisions are focused on three aspects: economic viability, environmental responsibility and social relevance. Fidelity Bank acts in line with local and international standards. These include The Nigerian Sustainable Banking Principles (NSBP), Equator Principles and the
International Finance Corporations (IFC) Performance Standards.
Sustainable Investment in Nigeria
These are three examples of sustainable stocks in Nigeria. These should be considered by local investors with a focus on eco-friendly practices. They are often added to multi-asset portfolios. Stocks may be combined with Forex trading and derivative trading.
When socially responsible companies disclose their practices, this contributes to the transparency of opportunities and risks. The country’s manufacturing brands, conglomerates and commercial banks provide annual sustainability reports. These help investors decide whether their stocks are worth buying.
For socially responsible individuals, profitability is not the first priority. They allocate their capital based on multiple factors. These include the company’s relationships with customers and staff, the treatment of animals, and the environment. The general public must have access to full descriptions of the values, assets, and policies of an enterprise.