REDAN Seeks to Promote, Institutionalise Environmental, Social, Governance Principles in Housing Sector 

Fadekemi Ajakaiye

The Real Estate Developers Association of Nigeria (REDAN) has said that it seeks the promotion and the institutionalization of Environmental, Social, and Governance (ESG) principles within the real estate sector. 

The President of REDAN, Prince Akintoye Adeoye stated this at the REDAN ESG press conference recently, describing the ESG as “one of the most critical initiatives in the history of REDAN.”

The benefits of ESG adoption, he said: “For developers, embracing ESG principles offers clear advantages: enhanced reputation, improved risk management, increased property values, and greater market competitiveness. For homebuyers, it means healthier living environments, lower utility bills, and peace of mind knowing they are contributing to a sustainable future. For the nation, it means fostering economic growth, reducing urban poverty, and positioning Nigeria as a leader in sustainable development on the African continent.” 

On why ESG matters now more than ever, Adeoye said, “The world is changing rapidly, and so too must we. Climate change, social inequality, and governance challenges demand urgent action from all sectors, including ours. In Nigeria, where urbanization continues to accelerate, the need for sustainable practices in real estate has never been more pressing. 

“By adopting ESG principles, we can: Reduce environmental degradation and contribute to national climate goals; Build equitable societies by promoting affordable housing, fostering community engagement, and enhancing well-being, and Strengthen trust through transparent and ethical business practices that protect the interests of investors, tenants, and communities alike. In short, ESG is not just about compliance or ticking boxes—it is about creating lasting value for everyone involved in the real estate ecosystem.” 

He said, “As the President of REDAN, I stand before you not only as a leader but also as a passionate advocate for sustainable development—a vision that aligns with our commitment to building a better future for Nigeria and its people. The real estate industry plays a pivotal role in shaping our cities, communities, and economies. However, this responsibility comes with an obligation to ensure that our developments are environmentally friendly, socially inclusive, and governed ethically.” 

On REDAN’s commitment to leading change, he state that “recognising the importance of these principles, REDAN established the ESG Committee under the leadership of Otunba Olusola Enitan. This committee has been instrumental in driving our ESG agenda forward, developing frameworks, conducting audits, and engaging stakeholders across the board. 

“Under their guidance, we have achieved significant milestones: 

– The creation of the Nigerian Real Estate ESG Handbook, which provides practical guidance for integrating ESG into real estate projects. 

– Capacity-building programmes that equip our members with the knowledge and tools needed to implement ESG principles effectively. 

– Partnerships with government agencies, financial institutions, and civil society organizations to amplify the impact of our efforts. 

“But our work does not stop here. We remain committed to advancing this cause through annual reporting, expanded training initiatives, and strengthened stakeholder collaboration.” 

He called on “all real estate developers across the federation to join us in this transformative journey. Let us commit to making ESG an integral part of every project we undertake. Together, we can build a future where every development enhances the quality of life for Nigerians while safeguarding our shared environment. 

“To achieve this, we invite collaboration from government agencies, financial institutions, NGOs, and academia. Your support will be crucial in unlocking the full potential of ESG in transforming Nigeria’s real estate landscape.” 

He reiterated that “sustainability is not merely a trend; it is the foundation of responsible development. At REDAN, we are proud to lead this charge, and we invite you, all our stakeholders, to walk this path with us. Together, we can create a built environment that reflects the values of equity, resilience, and prosperity for generations to come.” 

The Chairman, REDAN ESG Committee, Otunba Olusola Enitan, while discussing ‘Advancing Sustainable Development in Nigeria’s Real Estate Sector through ESG Principles’, said, “Our purpose is to underscore the critical importance of adopting ESG principles within the Nigerian real estate industry and to highlight the efforts of REDAN’s ESG Committee in driving this transformative agenda.”

On the need for ESG principles in real estate, Enitan said, “As stewards of growth and development, it is our responsibility to ensure that the built environment contributes positively to both people and the planet. In an era marked by climate change, social inequality, and governance challenges, the integration of ESG principles has become a strategic necessity—not just for compliance but for long-term success.”

The committee, he said, focuses on three core pillars:-Environmental: Encouraging sustainable building practices, reducing carbon emissions, enhancing energy efficiency, and conserving biodiversity.

Social: Fostering community engagement, advocating for affordable housing, and prioritizing health, safety, and well-being.

Governance: Upholding corporate governance best practices, ensuring transparency, combating corruption, and promoting fair competition.

Functions & Responsibilities:

To achieve its mandate, the ESG Committee undertakes the following functions:

– Developing comprehensive ESG policies tailored to the Nigerian market.

– Conducting audits and producing annual reports to monitor compliance and track progress.

– Organizing capacity-building programs to educate members on ESG principles and their implementation.

– Engaging stakeholders, including government agencies, financial institutions, and civil society, to promote ESG adoption.

– Providing advisory support to members facing challenges in implementing ESG practices.”

He said, “For the Nigerian real estate sector, embracing ESG means:

– Reducing environmental footprints while promoting energy efficiency and biodiversity conservation.

– Enhancing social inclusion through affordable housing, community engagement, and equitable practices.

– Strengthening governance frameworks to ensure transparency, accountability, and ethical business conduct.

“These principles not only align with global standards but also position us as leaders in sustainable development across Africa.”

He listed other key objectives of the ESG committee as:

1. Promoting sustainable real estate development practices.

2. Ensuring compliance with global ESG standards.

3. Facilitating stakeholder engagement on ESG issues.

4. Monitoring and evaluating ESG performance within the real estate sector.

“Since its inception, the ESG Committee has achieved significant milestones:

– Developed the *Nigerian Real Estate ESG Handbook*, a practical guide for integrating ESG principles into real estate projects. this will be launched at the Sustainability REDAN-MBAN Sustainability Conference in April.

– Launched capacity-building programs, equipping members with the knowledge and tools needed to implement ESG practices.

– Facilitated partnerships with key stakeholders, fostering collaboration and advocacy for ESG integration.

“Looking ahead, the committee aims to:

– Hold the Sustainability Conference in April in partnership with the Mortgage Bankers Association of Nigeria (MBAN).

– Publish an annual ESG report detailing members’ performance and progress.

– Expand training initiatives to reach more developers nationwide.

– Strengthen stakeholder engagement to amplify the impact of ESG principles.”