April/May News Highlights

April/May News Highlights

31 May 2019

This month includes news from Rwanda RSE/CMA, TMX, LuxSE, Tadawul, Moscow, Eurex, SET, WFE, Shanghai, Nasdaq Nordic, ESMA, NSE Kenya, Euronext Lisbon, Nasdaq Dubai, BME and more. Monthly news highlights are compiled by the SSE to give an overview of the capital markets sustainability news from that month.
 
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SSE INITIATIVE NEWS & EVENTS

Luxembourg Stock Exchange dedicates annual stock exchange day to the UN SDGs 23 May 2019 The Luxembourg Stock Exchange gathered the financial and political community to celebrate its annual highlight “The Stock Exchange Day” on Thursday 23 May. This year, the event zoomed in on change in all its forms under the catch-line “It’s not just climate change, it’s everything change!” The event presented the United Nations’ Sustainable Development Goals (SDGs) and had a UN representative participate through the UN Sustainable Stock Exchanges initiative. Nasdaq launches global environmental, social and governance reporting guide for companies 15 May 2019 Nasdaq has fulfilled a commitment it made as an SSE Partner Exchange to provide guidance on environmental, social and governance (ESG) reporting to its markets with the launch of its new global ESG reporting guide for public and private companies. The 2019 ESG Reporting Guide 2.0 includes the latest third-party reporting methodologies widely adopted by the industry and aims to help companies navigate the evolving standards on ESG data disclosure, regardless of geography or market capitalization. United Nations and World Federation of Exchanges hold joint Advisory Group Meeting 6 May 2019 The United Nations Sustainable Stock Exchanges (SSE) initiative hosted a day-long roundtable meeting of the joint SSE and World Federation of Exchanges (WFE) Advisory Group to evaluate how stock exchanges can embed sustainability into business operations. Macedonian Stock Exchanges announces commitment to positively change corporate culture 2 May 2019 The Macedonian Stock Exchange announced its commitment to strengthening corporate governance practices, making positive changes to corporate culture and to increasing transparency in its market as an SSE Partner Exchange. SSE contributes to Arab Federation of Exchanges Annual Conference 24 April 2019 The Sustainable Stock Exchanges (SSE) initiative joined the International Finance Corporation (IFC), S&P Dow Jones Indices, and the Federation of Euro-Asian Stock Exchanges (FEAS) to discuss the latest trends in ESG and impact investment at the Arab Federation of Exchanges (AFE) 2019 Annual Conference in Cairo. The panel introduced AFE participants to the growing appetite for sustainable investments from international investors, and how exchanges and other market participants could capitalize on this market segment. Indonesia exchange deepens commitment to ESG practices 18 April 2019 The Indonesia Stock Exchange (IDX) committed to promoting sustainability in its capital market, and becoming a member of the United Nations Sustainable Stock Exchanges (SSE) initiative. This new partnership reaffirms the exchange’s commitment to spur long-term sustainable investment, as well as improved environmental, social and corporate governance (ESG) disclosure, while enhancing performance among listed companies and Exchange members. Moscow Exchange joins United Nations Sustainable Stock Exchanges initiative to deepen ESG commitment 2 April 2019 Moscow Exchange (MOEX) announced today it has become the latest Partner Exchange of the United Nations Sustainable Stock Exchanges (SSE) initiative, joining other securities exchanges in a commitment to elevating sustainability practices. EVENT: SSE 10 Year Anniversary 26 September 2019 | New York, USA In 10 years, the SSE has grown to 85 exchanges, listing 50,000 companies valued at 85 trillion USD, and it is still growing. This illustrates that participating in a conversation on environmental, social and governance factors has become a necessary part of the investor-exchange-issuer dialogue. The SSE initiative is pleased to announce the celebration of its 10 year anniversary which will take place at the New York Stock Exchange on 26 September 2019, alongside the UN General Assembly gathering and Climate Action Summit. This is an invitation only event.

SSE EXCHANGE IN FOCUS ARTICLES

Borsa Istanbul co-hosts PRI workshop and ESG Integration Programme Borsa İstanbul, a founding Sustainable Stock Exchange (SSE) initiative partner since 2012, in collaboration with the UN-backed Principles for Responsible Investment (PRI), Turkish Institutional Investment Managers’ Association (TKYD) and Emerging Markets for Responsible Investing (EMRI) recently held a workshop for 75 local market participants based on the PRI methodology on ESG integration and best practices in emerging markets. Costa Rica Stock Exchange publishes sustainability review The National Stock Exchange of Costa Rica released its first Annual Sustainability Review, which symbolizes one more step in its sustainability journey since joining the SSE as a Partner Exchange. The publication illustrates how the National Stock Exchange of Costa Rica has incorporated different strategies and projects to support sustainable development from its capital market. Costa Rica holds first responsible investment workshop The National Stock Exchange of Costa Rica and the Asociación Costa Rica por Siempre organized the First Responsible Investment Workshop, which was held on May 17, 2019. The workshop was aimed at institutional investors, asset managers, financial and investment analysts, as well as professionals from companies in charge of corporate sustainability and finance areas that maintain relationships with investors. It was also open to the participation of business advisers. Japan Exchange Group co-hosts TCFD Symposium The Japan Exchange Group (JPX), an SSE initiative partner exchange since 2017, partnered with Japan’s Financial Services Agency (JFSA) to host a symposium on the Task Force on Climate-related Financial Disclosures (TCFD), entitled “The Power of the TCFD Framework in Company-Investor Dialogue.”

WEBINARS AND EVENTS

Borsa Italian Sustainability Day 2 July 2019 Borsa Italiana will organize the third edition of the Italian Sustainability Day, an important occasion for companies and investors to discuss on "Climate change and Transition." First Afro-Asia FinTech festival to focus on sustainable finance 15-16 July 2019 | Nairobi, Kenya The Central Bank of Kenya (CBK) and the Monetary Authority of Singapore (MAS) today announced the inaugural Afro-Asia FinTech Festival, to be held in Nairobi, Kenya, from 15 to 16 July 2019. Climate Finance Day 2019 25- 29 November 2019 | Paris, France Flagship event of Finance for Tomorrow, this event is a major annual gathering to mobilize the world's industry against climate change. The UN Environment Program Finance Initiative and Finance for Tomorrow, Paris EUROPLACE’s initiative on green and sustainable finance, join forces for action on sustainable finance. At its 5th edition, the event will be dedicated to "Financing a Just Transition". More information on past events here.  

CONSULTATIONS

ESMA Consults on indices and recognised exchanges under the capital requirements regulation Due: 5 July 2019 The European Securities and Markets Authority (ESMA) has today published a Consultation Paper proposing amendments to the main indices and recognised exchanges under the Capital Requirements Regulation (CRR).

HKEX Consults on ESG Reporting Framework HKEX is reviewing its ESG reporting Due: 19 July 2019 The key focus of the Exchange’s latest ESG Consultation is to support and improve issuers’ governance and disclosure of ESG activities and metrics. Consultation Paper “Review of the Environmental, Social and Governance Reporting Guide and related Listing Rules” (ESG Consultation).  

STOCK EXCHANGE NEWS

The Bermuda Stock Exchange announced the launch of their ESG initiative 30 May 2019 The Bermuda Exchange announced the launch of their ESG initiative in The World Federation of Exchanges Focus publication. Nigerian Stock exchange launches Facts behind the Sustainability Report 30 May 2019 The Nigerian Stock Exchange (NSE) launched its Facts Behind the Sustainability Report (FBSR). Styled after the NSE’s flagship Facts Behind the Listing and Facts Behind the Figures event series, the Facts Behind the Sustainability Report is designed to further promote the adoption of Environmental, Social and Governance (ESG) practices, reporting, and disclosure and encourage responsible long-term approaches to investment. Nigeria Stock Exchange continues to highlight the importance of sustainable business 30 May 2019 At the launch of the stock exchange's new report titled "The Facts Behind the Sustainability Report," the CEO Mr. Oscar Onyema  said: "We firmly believe that promoting transparent disclosures on environmental, social and governance issues can help listed companies access the long-term sustainable capital that will help them contribute their role as private sector organisations to achieving the sustainable development goals." SET: Thai Alternative Bourse holds executive forum to celebrate 20th anniversary 30 May 2019 Market for Alternative Investment (mai) has collaborated with the mai-listed Company Association (maiA) to organize “mai FORUM 2019” as part of the 20th anniversary celebration, highlighting mai's role as the source of funding for small and medium-sized enterprises (SMEs) for quality and sustainable growth. Shenzhen stock exchange: SME Board's 15th Birthday 28 May 2019 After its establishment and growth in the past 15 years, the SME Board has gradually become an important part of China's multi-tiered capital market, an important engine for SME development and a gathering place for leading companies in sub-sectors. Nasdaq Podcast on advancing ESG 28 May 2019 Corporations today increasingly find value in environmental and social sustainability. How has reporting on these topics evolved and how do we prepare to advance ESG? Listen here. Nigerian Stock Exchange wins outstanding invaluable company award for CSR 20 May 2019 Rotary International worldwide gave the award and said it was bestowed on NSE based on its “impactful Corporate Social Responsibility projects in the areas of Education, Health, Economic and Youth Empowerment, and Environment, amongst others, which Rotary considers invaluable in the service to humanity. NYSE Q&A on social value investing 1 May 2019 For NYSE's latest Q&A on sustainability they spoke with Howard W. Buffett, who is approaching the issue from academia, as well as the private sector. He recently co-authored a book, Social Value Investing, with his fellow Columbia University professor William B. Eimicke. Howard sits on the North America advisory board for Toyota Motors, and previously served in the White House and the Department of Defense. Sustainable development: the Santiago exchange's agenda May 2019 Article by José Antonio Martínez, Chief Executive Officer, Bolsa de Santiago, in the World Federation of Exchange's monthly Focus. Embedding ESG: An exchange perspective May 2019 Article by Shyrose Osman, Vice President, Head of Corporate Communications, Dubai Financial Market (DFM) in the World Federation of Exchange's monthly Focus. Lagos Financial Centre for Sustainability (“LFC4S”) is established 9 April 2019 Nigerian financial markets’ ecosystem, FMDQ, in partnership with UNEP, hosted an inaugural meeting at FMDQ’s business complex, Exchange Place, Lagos, during which the Lagos Financial Centre for Sustainability (“LFC4S”) was established to represent Nigeria in the International Financial Centre for Sustainability. BSE India and GRI secretariat hold joint seminar 3 April 2019 The seminar “Dialogue on Business Innovation and Leadership for UN Sustainable Development Goals” highlighted how the increase of ESG reporting in India can lead the way to sustainable development.  

REGULATOR NEWS

ESMA Appoints chair for its new coordination network on sustainability 23 May 2019 The Board of Supervisors of the European Securities and Markets Authority (ESMA) has today established a Coordination Network on Sustainability (CNS), and appointed Ana María Martínez-Pina Garcia, Vice-Chair of the Comisión Nacional del Mercado de Valores (CNMV, Spain) to chair the CNS for two years with immediate effect. EU Technical Advice on Incorporating Sustainability Factors Into EU Regulation 16 May 2019 The European Securities and Markets Authority has published its final report and technical advice to the European Commission on incorporating sustainability risks and factors into European regulation. ESMA puts sustainable finance as top priority 16 May 2019 Executive Director of the European Securities and Markets Authority (ESMA) emphasized the importance of sustainable finance in the regulatory agenda in her keynote speech at the ICMA Annual General Meeting and Conference. "The transition to a low-carbon, more resource-efficient and sustainable economy can only be achieved by building a financial system that supports and finances sustainable growth." Securities Commission Malaysia's inaugural CG Monitor reports encouraging adoption of Corporate Governance Best Practices 6 May 2019 The Securities Commission Malaysia (SC) released its inaugural Corporate Governance Monitor (CG Monitor) which highlighted positive levels of adoption for a majority of the practices recommended in the Malaysian Code on Corporate Governance (MCCG) with improvement opportunities in the quality of disclosures. ESMA submits technical advice on sustainable finance to the European Commission 3 May 2019 The European Securities and Markets Authority (ESMA) has published its technical advice to the European Commission (EC) on Sustainable Finance initiatives to support the EC’s Sustainability Action Plan in the areas of investment services and investment funds.  

ESG INDICES AND PRODUCTS

Australian Equities Market launches the S&P/ASX 200 ESG Index 31 May 2019 The index launched by the Australian Stock Exchange (ASX) delivers a substantial ESG score improvement, while providing a benchmark-like risk/return profile. STOXX extends its suite of ESG- X Indices 29 May 2019 The operator of Deutsche Boerse Group’s index business and global provider of innovative and tradable index concepts, has launched a series of new benchmark ESG-X indices, such as an ESG-X version of the flagship EURO STOXX 50® Index. Luxembourg Stock Exchange launches 750€ million Green Bond from Philips 27 May 2019 The proceeds are going to finance green innovation projects and the transition to a circular economy. BNP PARIBAS issues Global Circular Economy ETF 23 May 2019 The fund is the BNP Paribas Easy ECPI Circular Economy Leaders UCITS ETF and it has been listed on Euronext Paris with the name REUSE FP. Additional opportunities in new markets? Eurex's ESG Futures get CTFC approval 17 May 2019 An interview with Vassilis Vergotis, Head of Strategy and Product Design for Equity and Index at Eurex. Euronext launches the listing of the WorldBank 1.5 billion € sustainable development bond 16 May 2019 The World Bank’s first 10-year EUR global bond in 10 years, it will serve to attract investors on the pursue of SDGs and development activities. Luxembourg Stock Exchange launches European Research Group green bond 10 May 2019 The 500m € green bond proceeds will be used to finance the production of renewable energy across Europe. NSE to list N8.5bn corporate infrastructure green bond 8 May 2019 The Nigerian Stock Exchange is set to list North South Power Company Limited’s N8.5bn corporate infrastructure green bond, which will provide a unique platform to support both the Federal Government and businesses to access capital for sustainable initiatives. BME registers a new green bond issue by ADIF 6 May 2019 BME has admitted to trading a new green bond issue by ADIF-Alta Velocidad, with a value of €600 million. The funds will be earmarked for the construction of new high-speed lines stretches. The issue is launched under the framework of ADIF's sustainability policies.   UBS to launch first S&P 500 ETF with ESG screening 9 April 2019 UBS Asset Management has announced the upcoming launch of the UBS ETF S&P 500 ESG UCITS ETF in Europe which will provide a passive vehicle for socially responsible investment into the US large-cap equity market.  

MANAGEMENT NEWS

HKEX appoints new international advisory council member and appoints new members to the consultative panels.  30 May 2019 Hong Kong Exchanges and Clearing Limited (HKEX) announced the appointment of Marcus Wallenberg to the HKEX International Advisory Council. HKEX also announced new members to the consultative panels here. BME reshuffles its management team 29 May 2019 The Board of Directors of BME has approved – as part of a global overhaul - a series of changes in the company’s management team, which are aligned with the objectives set by the Strategic Plan while also advancing towards a more appropriate distribution of tasks among business units and corporate areas. SASB Investor Advisory Group recruits 15 new members 22 May 2019 The Sustainability Accounting Standards Board (SASB) has expanded its Investor Advisory Group (IAG), a collection of leading asset owners and managers committed to improving sustainability-related disclosure to investors. AllianzGI creates chief sustainability officer role 16 May 2019 Allianz Global Investors has appointed Beatrix Anton-Groenemeyer as chief sustainability officer, the asset management firm has announced. This appointment shows how seriously sustainability is taken and how the group intends to remain at the forefront of active investing. Yury Denisov takes office as CEO of Moscow Exchange 16 May 2019 Yury Denisov has been appointed Chief Executive Officer of Moscow Exchange with effect from 16 May 2019. The decision was made by Moscow Exchange’s Supervisory Board and approved by the Bank of Russia. Mr. Onadele appointed Chairman for “Lagos Financial Center for Sustainability” 09 April 2019 During the inaugural meeting, Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ, emerged as Chairman, Governance Board for “LFC4S”, the Lagos Financial Centre for Sustainability.

About the SSE

​The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.