The Sustainability Professionals Institute of Nigeria (SPIN) has called on the Financial Reporting Council of Nigeria (FRC) to confine its role to regulating corporate sustainability disclosures and avoid extending its mandate into the broader practice of sustainability. The Institute made the call in a statement issued on Tuesday, emphasizing the need for a clear distinction between sustainability reporting and sustainability practice as Nigeria advances the implementation of the International Sustainability Standards Board (ISSB) framework. According to SPIN, while sustainability reporting is an important component of corporate accountability, it should not be mistaken for the broader discipline of sustainability management and implementation. What they are saying The institute reaffirmed its support for Nigeria’s adoption of the ISSB Sustainability Disclosure Standards—IFRS S1 and IFRS S2—and commended the country for positioning itself as an early adopter of the framework. However, SPIN expressed concern over what it described as a growing tendency to treat the reporting standards as synonymous with sustainability itself, while framing the discipline as the exclusive preserve of accounting professionals.
“Reporting is not the discipline,” SPIN stated. “Sustainability encompasses governance, strategy, environmental stewardship, climate resilience, biodiversity, human rights, labour practices, stakeholder engagement, responsible investment, the circular economy, community development and long-term value creation. Reporting standards provide a way to communicate aspects of that work. They do not constitute it.”
The institute argued that sustainability reporting is only the final stage of a much broader process that includes governance, measurement, implementation, monitoring, and continuous improvement. “Reporting is the final expression of sustainability performance.
Organisations cannot credibly disclose what they have not first governed, measured, managed and improved,” SPIN added. The role of IFRS SPIN noted that IFRS S1 and IFRS S2 were specifically designed to guide sustainability-related financial disclosures for investors and are primarily focused on financial materiality. The institute emphasized that global sustainability practice is much broader and includes several other internationally recognised frameworks and principles.
These include:
European Sustainability Reporting Standards (ESRS)
Global Reporting Initiative (GRI)
United Nations Guiding Principles on Business and Human Rights
OECD Guidelines
United Nations Global Compact
Scientific and climate-related sustainability protocols
According to SPIN, presenting expertise in IFRS sustainability disclosure standards as equivalent to expertise in sustainability itself risks narrowing the discipline and excluding the contributions of other professions. “Sustainability is not an accounting discipline,” the institute stated.
“It draws on environmental science, engineering, economics, finance, governance, law, public policy, climate science, community engagement, human rights, communications, social performance and risk management. No single profession can claim ownership of it.”
Institute warns against regulatory overreach The institute also cautioned against regulators expanding their role beyond oversight and disclosure requirements. While acknowledging the FRC’s statutory responsibility for regulating corporate reporting, SPIN argued that the council should not position itself as the primary authority on sustainability practice, education, or implementation.
According to the institute, regulators should avoid activities that could place them in direct competition with practitioners and institutions operating within the sectors they oversee. “A credible sustainability ecosystem depends on the combined contributions of regulators, academia, professional institutes, business, civil society, development partners and practitioners across many disciplines,” SPIN said. The institute urged organisations involved in sustainability capacity-building to ensure that IFRS S1 and IFRS S2 are taught within the broader context of sustainability and not presented as a complete representation of the field. SPIN further encouraged stakeholders to promote sustainability education that reflects the multidisciplinary nature of the profession and supports the development of expertise across environmental, social, governance, economic, and policy dimensions. The institute maintained that effective sustainability reporting can only emerge from genuine sustainability performance. “Reports matter because they reflect reality. They do not replace it,” SPIN concluded.
What you should know The FRC is a Federal Government regulatory agency established under the Financial Reporting Council of Nigeria Act 2011. The Council is responsible for issuing and enforcing financial reporting and corporate governance standards across public and private sectors in Nigeria. The statement comes amid increasing regulatory activity by the Financial Reporting Council of Nigeria as the country strengthens its corporate reporting framework. Last year, the Federal Government suspended the annual dues imposed on public interest enterprises by the FRC following concerns raised by the organised private sector over its potential negative impacts on businesses.
