Business
Are companies getting better at doing good?
Hitherto, businesses hinged their survival and continuity on the sheer amount of profits they were able to make rather than relying on intangibles like goodwill, reputation, brand essence, etc. But increasingly, businesses are now aware that their very essence and sustainability is a function of how well they are able to cultivate good relationships with people and places within the environment that they operate; a philosophy aptly entrenched in what is now widely accepted as creating shared value. Ibrahim Apekhade Yusuf in this report examines how companies are executing their shared value propositions both from the national and global point of view.
One phrase which easily resonates with Nestlé Foods is “Good food, Good life.” At the risk of playing the Devil’s advocate one may be tempted to ask if indeed that tagline is not just a mere platitude or some gobbledygook adopted by the Fast Moving Consumer Goods Company just to feel good about themselves?
For Unilever Nigeria Plc, arguably Nigeria’s longest-serving manufacturing organisation, established in 1923, whose mission is to “Brighten everyday life for all”, as it focuses on delivering best-in-class performance through superior brands, and tie that with First Bank’s payoff “Africa’s Bank of first choice”, all seem to say one thing: companies are consciously putting their best foot forward and also want to remain in good standing with their publics- investors, host communities, regulators, etal.
For example, Nestlé, the manufacturing giant which set up shop eons ago has at the core of its business strategy a conscious commitment towards helping the larger populace to enjoy good food and by extension the good life.
This truth is self-evident in the company’s commitment to Corporate Social Responsibility (CSR) now aptly encapsulated in its new philosophy of ‘Creating Shared Value (CSV)’ for everyone connected with its business whether as individuals, businesses, partners, communities, national and subnational governments, etc.
Since its establishment over 150 years, Nestlé for decades has applied itself to creating shared value and being a force for good.
Nestlé is the world’s largest food and beverage company. It is present in 187 countries around the world, and its 300,000 employees are committed to Nestlé’s purpose of enhancing quality of life and contributing to a healthier future. Nestlé offers a wide portfolio of products and services for people and their pets throughout their lives.
Insights from Nestlé’s Creating Shared Value and Sustainability Report 2021 further elucidates the company’s approach to achieving its purpose is to unlock the power of food to enhance quality of life for everyone, today and for generations to come.
While lending credence to the foregoing, Victoria Uwadoka, Nestlé’s Corporate Communications Director, noted matter-of-factly that the vision driving its commitments to people and communities derives from its concern for achieving the utmost in the area of environmental, social and governance strategy.
According to her, Nestlé Nigeria’s impact across various sustainability metrics including access to water, poverty reduction and stakeholder management is such that has further positioned the company as a trustworthy partner in the eyes of its publics.
Nestlé’s approach to sustainability, she notes, is comprehensive, founded on its commitments to achieve net-zero emissions, advance regenerative agriculture at scale, enhance water stewardship, develop sustainable packaging, create opportunities for young people and foster a diverse and inclusive workforce.
Nestlé Nigeria brings these commitments to life by ensuring accessible nutrition for individuals and families, contributing to building thriving communities through youth and women empowerment, enhancing access to water and improving teaching and learning facilities in communities closest to its operations, she stressed.
The company also demonstrates its commitment to protecting the planet for future generations by taking action to reduce its carbon footprints through energy savings, water reduction, packaging redesign and contributing to efforts to engender a circular economy in waste management.
The company’s concerted efforts at building goodwill and public trust is what perhaps informed why it made 41 commitments to society, each linked to the UN Sustainable Development Goals (SDGs), to guide its action plans.
It is also instructive to note that Nestlé CSV philosophy has not just found meaning within its yearbook alone but in real life with great testimonies all thanks to the positive impacts it is making amongst the populace.
Whether in the area of environmental protection, sustainability, climate change, reengineering places and people, Nestlé imprimatur has been felt everywhere across the country in terms of impacts over the years.
Take for instance, Nestlé Cares, one of the flagship programmes by the company since launching in 2019 has provided a platform for employees to give back to society by donating their time and talents to make a positive impact on individuals and families, on communities and the environment.
Nestlé employees have lived out their passion for caring for their communities and the planet through various projects including beach cleanup exercises, orphanage outreaches, market cleanup activities and mentorship programs for youth.
Waste collection intervention
From available information, Nigeria generates more than 32 million tonnes of waste per year with the city of Lagos alone responsible for about 10,000 tonnes of waste every 24 hours.
Independent checks by The Nation revealed that one of the vehicles set up to galvanise action towards managing the vast amount of waste is the Food and Beverage Recycling Alliance (FBRA), a coalition of food, beverage, and recently tobacco companies that have come together to form an extended producer responsibility (EPR) organisation.
Established in 2018, by four multinational founding members including: Nestlé PLC, Nigerian Bottling Company under the Coca-Cola system, Nigerian Breweries, and Seven Up under the PepsiCo system, initially, members primarily dealt with plastic PET bottles as their main packaging material.
However, today, with diverse membership, it manages and supports the collection and recovery of not only rigid PET plastics but also flexible plastics like pure water sachets and other types of shrink wraps.
Besides, it supports the recycling of aluminum cans, used beverage cartons, cigarette butts, and glass. In total, and currently manages six waste streams to cater to the needs of its member companies.
Investigation revealed that over the past five years, the FBRA has evolved into an enabler of the ecosystem.
Corroborating the foregoing, Uwadoka recalled that Nestlé over the years have continued to collaborate with various stakeholders across the industry to lend their support by using the FBRA as a vehicle to drive some of its interventions within that waste management space.
For instance, she recalled that in December 2023, Nestlé launched its 50% recycled content bottle well ahead of other companies, even as she assured that by 2030 its figure is expected to rise to 50%, driving the circular economy even further.
Also as a part of efforts to address this menace, Nestlé Nigeria entered into a partnership agreement with Wecyclers on the 20th of September 2019 to accelerate the process of collecting and recycling plastic waste in Nigeria.
Specifically, the alliance allowed Wecyclers to expand its plastic waste recovery systems in the country to five collection points across some Nigerian communities, including Ajah, Ikeja, Mushin, Lagos Island, Magodo, others.
Justifying the need for the partnership at the time, the management of Nestlé Nigeria said it was the company’s modest way of helping with waste management, which remains a major concern for many states.
According to the company, a key element in achieving this objective is to make 100% of our packaging reusable or recyclable by 2025.
Looking back over the years, Nestlé’s ambitious target of zero environmental impact objectives as part of striving for a waste-free future has been met with some modest success.
Thanks to this partnership, the young company which set up shop in 2012 now has 120 employees and nearly 17,000 subscribers. It is already making a profit of around US$100,000.
With this partnership agreement, Wecyclers is extending the list of its global partners, which already included names such as DHL, Coca Cola, Unilever, and others.
From available information, Nestle identified 12 countries namely: Colombia, Ecuador, Egypt, Ethiopia, Ghana, India, Indonesia, Malaysia, Nigeria, Philippines, Thailand and Vietnam, where waste is often mismanaged and leaking into lands and waterways.
Interestingly, these 12 countries account for over 10% of Nestlé plastic usage, hence today Nestle has dozens of neutrality projects in these 12 countries, working with partners and associations to scale up collection, sorting and recycling of packaging waste.
The aim is keeping packaging material in the economy and out of the environment. With these projects, it aims to collect and recycle the same amount of plastic as we use in our products, while aiming to support the improvement of recycling rates and infrastructure. This includes support for well-designed and effective mandatory Extended Producer Responsibility and Deposit Return Programs.
Regarding plastic bottles, Nestle has increased the amount of recycled PET use across its brands globally to 50% by 2025, by incorporating rPET into its bottles where it is technically and economically feasible. Over the past 10 years, it has reduced by 22% the quantity of PET needed for each liter of bottled water produced.
Globally, the amount of packaging that is inappropriately managed at the end of its life is a serious and persistent environmental problem. Up to 13 million tonnes of plastic end up in the ocean every year, endangering marine animals, birds and fish. Inadequate waste management can also create hazardous conditions for people.
The infrastructure to collect, sort, reuse and recycle packaging varies not only by country, but also by municipality. While packaging recycling schemes have helped to start a circular economy for recovered materials, many regions are not yet able to manage packaging, food and other end-of-life materials in a circular way. In less-developed countries, municipal authorities often do not have the resources to implement suitable waste management strategies.
A partnership that works
Alef Recycling operates a plant that transforms discarded plastic bottles into high-quality recycled PET (rPET) pellets. These pellets are used to make new bottles that meet stringent safety standards from NAFDAC, EFSA, and the FDA.
The company’s strategic alliance with Nestlé Nigeria has become a model for turning plastic waste into economic opportunity. Together, they have built a system that not only recycles plastic but also uplifts communities, creates jobs, and promotes a circular economy.
Just like Wecyclers, Alef facility is involved from the collection and sorting of post-consumer PET bottles to their transformation into high-quality, food-grade recycled PET (rPET) pellets.
Alef Recycling’s Managing Director, Wissam Ramlawi, during the tour of the operation said: “This isn’t just about recycling, it’s about changing how Nigerians think about waste. “We’ve invested in world-class infrastructure not only to meet global standards but also to make sure we’re enabling companies like Nestlé to fulfill their sustainability promises with 100 per cent traceability.”
How Nigeria is navigating the sustainability journey
Investigation by The Nation revealed that Nigeria was one of the very early adopters of sustainability standards developed by the International Sustainability Standards Board (ISSB).
In April 2024, the Financial Reporting Council of Nigeria (FRCN) released a roadmap for adoption of IFRS S1 and IFRS S2.
Lending credence to the foregoing, Jamiu Olakisan FCCA, EY Nigeria partner and assurance leader for West Africa, together with his team confirmed that the EY has been working closely with both the FRCN and clients to ensure a smooth implementation.
Although adoption is being staggered over four phases including one for government entities, Nigerian companies require substantial support and, ultimately, auditors will be required to verify and provide assurance over these standards.
“This is one of the areas within assurance where we expect to see significant growth, similar to what we experienced in 2012, when Nigeria decided to adopt IFRS,” Olakisan says matter-of-factly. “We are working on sustainability with a number of clients in Nigeria and also Ghana.”
On top of this, there has been additional pressure due to the implementation of new regulations and other IFRS Standards. For instance, from 2023 listed companies have been required by the Securities and Exchange Commission (SEC) to report on their internal controls over financial reporting (ICFR), on a model similar to the US’s Sarbanes-Oxley requirements.
“As auditors, we are also required to audit the management assessment of ICFR and issue a limited assurance report in respect of this,” Olakisan explains. The extension of the regulation by the FRCN to cover other public interest entities during 2024 will further add to the workload of both business entities and professional firms.”
What sustainability means in financial ecosystem
While shedding more light on the concept of ESG, the team at PwC in one of its treatises tagged, ‘ESG and Nigerian Financial Institutions What’s Happening?’ affirmed that it has ushered in a new wave of change in more recent times leading to the incorporation of Environmental, Social and Governance (ESG) concerns in carrying out business activities within the financial ecosystem.
In a bid to attain sustainable banking, several initiatives are being introduced by banks across the globe to address some of the issues raised by stakeholders in implementing ESG.
Nigerian Financial Institutions began their journey into promoting a sustainable economy through sustainable banking almost a decade ago. There was collaboration between the Central Bank of Nigeria (CBN) and the Bankers Committee to establish a sustainable banking framework that will drive innovation, market resilience and sustainable economy. The result of this collaboration was the establishment of the Nigerian Sustainable Banking Principles (NSBPs) in 2012.
In addition, regulators around the world are now moving from policies to establishing concrete regulatory frameworks that will result in complete compliance, consistent measurement standards of ESG impacts to promote a sustainable environment and economy. This move by regulators should not be handled with levity by organisations. Therefore, organisations need to lay the groundwork for uncertainties and unavoidable changes around reporting, disclosures, value creation, green investment and the likes that would arise when complying with policies and regulations.
The recent development and implementation being witnessed in the ESG space will bring about some unequivocal changes. This, therefore, has made it imperative for stakeholders, organisations and institutions to closely monitor and keep abreast with the new and future development around ESG. This will aid the process of effecting the appropriate adjustments to their business model and/or operations which will eventually result in enhancing a sustainable environment and the economy at large.
However, the current issue of underdevelopment and inconsistencies in ESG disclosures between countries is about to change. Recently, there was a push by the International Financial Reporting Standard (IFRS) Foundation, through International Sustainability Standards Board (ISSB), that will mandate governments of more than ninety countries who attended the COP26 to submit enhanced climate commitments, known as Nationally Determined Contributions (NDCs) every five years.
How ESG strategy fuels Nigeria’s development goals
For many businesses desirous of staying relevant, the implementation of a well-structured ESG becomes inevitable.
Mr. ‘Wale Oyedeji, Group Managing Director, First HoldCo Plc, in his opening remarks in the firm’s Sustainability Report 2024 noted matter-of-factly that “With all that was accomplished through our sustainability initiatives in 2024 and previous years, there is still so much begging for attention that we cannot afford to rest on our laurels. And as we look ahead and attempt to predict what the next 131 years would look like for us as an institution, we cannot contemplate a future where we have stopped innovating to make a positive impact. We see the future FirstHoldCo still innovating in a sustainable way to remain ever relevant to our customers and the communities we serve while driving societal progress. I invite all to read this report and commit to doing the same in their communities.”
Echoing similar sentiments, the Chief Corporate Services Officer, MTNN, Tobechukwu Okigbo, MTN Nigeria’s commitment to sustainability extends beyond business operations.
Specifically, MTN Nigeria’s Environmental, Social, and Governance (ESG) strategy has become a cornerstone in advancing Nigeria’s development objectives, particularly in areas such as education, healthcare, clean energy, and digital inclusion.
While speaking to the outcome of the telco’s 2024 Sustainability Report, as presented to stakeholders at the Nigerian Exchange Group House Okigbo said, “We actively invest in initiatives that drive positive change in society. Through the MTN Foundation, we support impactful programmes nationwide, and see to it that they align with real community needs. By engaging stakeholders, collaborating with community leaders, and partnering with NGOs, we foster inclusive and sustainable development.
“A key initiative, “What Can We Do Together”, exemplifies our community-driven approach. This programme empowers Nigerians to identify and propose projects that address local needs, which the Foundation then brings to life. Since its launch in September 2015, this initiative has transformed lives and contributed to grassroots development across Nigeria.
“To enhance our impact, we prioritise open dialogue and accountability. Stakeholder forums and dedicated feedback channels facilitate meaningful engagement, while our grievance mechanisms, independent impact assessments, monitoring and evaluation processes maintain transparency, effectiveness, and long-term sustainability.”
He said doing it for the planet is about committed to environmental stewardship, aiming for net zero emissions by 2040. “Our efforts focus on mitigating our environmental footprint and actively reducing our carbon emissions.”
He added that the doing it for people principle promotes digital and financial inclusion as well as nurturing a diverse society. “By facilitating socio-economic development, we foster opportunities for community advancement, remaining transparent and accountable to stakeholders while striving to enhance lives through modern connectivity.”
Okigbo said in 2024, MTN invested N3.5 billion in Corporate Social Investment, bringing its total investment to N31.9 billion since inception.
Following the money
One subject-matter that remains hotly debated is the fact most companies graciously release their expenditures for CSR but maintain studied silence when you try to interrogate what the budget catered for.
In the view of Akeem Alao, a PR consultant, controversies surrounding Corporate Social Responsibility (CSR) expenditures by Nigerian companies often involve accusations of false claims for tax rebates, discrepancies between reported activities and actual community impact, and the practice of “window dressing” or greenwashing.
According to him, some firms, including Shell, have been found to include photos of non-existent, uncompleted, or abandoned projects in their CSR reports to appear more socially responsible than they are.
A major challenge is the absence of universally accepted guidelines, standards, and mandatory reporting frameworks for CSR in Nigeria. This voluntary and inconsistent approach allows for a lack of transparency and makes it difficult to monitor and control the actual impact of CSR activities.
CSR in Nigeria is often perceived as “forced or involuntary philanthropy” due to corporate reluctance and external pressure, rather than an integrated, strategic business approach. This often leads to a top-down approach that ignores the real, prioritised needs of local communities, creating social fragmentation and a lack of project sustainability.
More recently, Nigeria’s tough economic conditions, including the devaluation of the Naira, have forced major companies like MTN Nigeria and Nigerian Breweries Plc to scale back their CSR budgets, visibly affecting initiatives and sponsorships aimed at the general public. This has raised concerns about the long-term commitment of companies to social impact during financial difficulties.
Top CSR spenders
From available information, the oil and gas sector continued to account for some of the largest CSR budgets in 2025. TotalEnergies Nigeria, Shell Nigeria, and Chevron Nigeria Limited sustained multi-year investments in host community development with key focus areas like education scholarships and infrastructure, healthcare delivery and facilities, livelihood and economic development programmes, community infrastructure projects.
Besides, the telecommunications companies remained strong CSR investors in 2025, with MTN Nigeria and Airtel Nigeria sustaining significant funding through their foundations.
The banking and financial services sector remained one of the most prominent contributors to CSR spending in 2025. Institutions such as GTCO Plc, Access Bank Group, First Bank, Zenith Bank Plc, and United Bank for Africa (UBA) sustained significant investments, largely channelled through structured foundations.
This is just as large FMCG and industrial groups such as Nestlé Nigeria Plc, Dangote Group, BUA Group, Lafarge Africa Plc, and Unilever Nigeria Plc maintained notable CSR investments in 2025.
Checks by The Nation revealed that Dangote Cement Plc, reported a significant CSR expenditure of N13.2 billion in its 2024 financial report, a substantial increase from N2.36 billion the previous year; thus placing it as one of the single largest corporate spenders on social investment in the country.
Access Holdings contributions totaling N2.6 billion in 2023 to various charitable and non-charitable organisations, an increase from N1.6 billion in 2022, while Zenith Bank Plc’s consistently ranks among the top spenders. Its donations increased to N1.21 billion in the first half of 2023 and recorded N1.63 billion in Q1 2024 alone. The bank’s total CSR investment in 2021 was N4.37 billion.
Shell (Shell Petroleum Development Company of Nigeria Ltd and partners): While an international company, its Nigerian operations are a major area of social investment globally for Shell. The total expenditure on direct social investments by the three Shell companies in Nigeria and their partners in 2023 was $42.2 million (approximately NGN 30 billion based on 2023 exchange rates), with Shell exclusively spending $14.1 million.
Other Notable Companies: Other companies noted for significant and impactful CSR initiatives include MTN Nigeria, United Bank for Africa (UBA), Stanbic IBTC Holdings, and Nigerian Breweries Plc.
Still wondering whether Nigerian brands are living up to their billing? A penny for your thoughts because the received wisdom out there is that indeed for businesses will get good as it gets!
Source link