ISSUANCE OF GREEN BONDS AND ENVIRONMENTAL PROTECTION OBLIGATIONS – A WIN-WIN FOR CORPORATES IN THE NIGERIAN FMCG SECTOR
The need for protection of the environment is at the front burner of political discussions both at local and international levels. The reason for this is not farfetched as it is already obvious that the Planet Earth, as we know it, may be harmed or damaged to a significant extent if care is not taken on how the environment is treated. To this end, various governments have taken steps using legislations for protection and preservation of the environment.
In the same vein, from across the length and breadth of legal and commercial discussions, Green Bonds is a consistently trending topic. If the capital that has been raised all around the world by means of Green Bonds are anything to go by, it would not be wrong to conclude that Green Bonds seem to have come to stay and can only get better.
This article looks at the environmental obligations of companies, especially those operating in the Manufacturing Sector – generally referred to as the Fast-Moving Consumer Goods (FMCG) sector, under various Nigerian legislations relating to the environment. Attention is paid to the companies in the FMCG sector because of the impact their manufacturing operations have on the environment. The article also looks at the features, history and future of Green Bonds; the differences between Green Bonds and other traditional bonds; how Green Bonds have been utilised for capital raising around the world by both corporates, supranational institutions and states; and how Nigerian corporates, especially corporates in the FMCG sector can also take advantage of the uniqueness of this specialised financial instrument to raise capital for the advancement of their businesses and operations and at the same time take the opportunity of the Green Bond issuance to ensure compliance with their regulatory obligations under the relevant environmental legislations.