April monthly news highlights

30 April 2018

This month includes news from ASX, B3, Santiago Exchange, Shanghai Exchange, Shenzhen Exchange, Deutche Boerse, Bursa Malayia, NSE, CSE, LSE, ICE/NYSE 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

SSE Advisory group discusses role of securities regulators in sustainable development April 30, 2018 The SSE convened members of an informal multi-stakeholder advisory group to deliberate on how securities regulators can support sustainable finance and the UN Sustainable Development Goals (SDGs). The advisory group consists of more than 50 participants including capital market regulators, stock exchanges, investors, civil society and thematic experts interested in evaluating how securities regulation can help the financial markets better align with the SDGs. SSE works with African exchanges to leverage innovation for sustainable development April 20, 2018 The SSE’s presentation covered the innovative practices of stock exchanges around the world aimed at promoting investment into SDG sectors, as well as other innovative responsible investment products and services introduced by investment service providers. Attention was paid to both the risks and growth opportunities offered by the climate transition and SDGs. Sustainability reporting and green finance projects were some of the key issues addressed; alongside strategies to assist the region in attracting sustainable finance. SSE work on green finance was highlighted including key lessons learned from the SSE guidance recently launched at COP23 in Bonn. The presentation covered new explicitly labelled sustainability themed investment products (e.g. green bonds, water bonds, ESG indices and funds), with special emphasis on applications in African markets. Three new stock exchanges join UN coalition for sustainable capital markets April 24, 2018 Stock exchanges from Bosnia and Herzegovina (Republic of Srpska), Greece and Uganda announced their commitment to promoting sustainable and transparent capital markets by joining the UN Sustainable Stock Exchanges (SSE) initiative. The SSE’s now more than 70 partner exchanges represent over $60 trillion in market capitalization and 38,000 listed companies from all corners of the world. EVENT: UN SSE 2018 Global Dialogue October 23, 2018 | Geneva, Switzerland The SSE flagship Global Dialogue is a unique global gathering designed to bring together market leaders to analyze, promote and foster communication on stock exchanges’ sustainability initiatives. Attracting speakers and audience members from around the world, the SSE Global Dialogue has become the main global platform for convening dialogue on sustainable capital markets. The 2018 Global Dialogue will take place as part of the UNCTAD World Investment Forum in Geneva, Switzerland.

WEBINARS AND EVENTS

Webinar: Implementing TCFD Recommendations: maximizing opportunity in a transition to a low carbon economy May 16, 2018 The Climate Disclosure Standards Board (CDSB), working with the We Mean Business Coalition, has launched a corporate commitment to implement the TCFD recommendations within 3 years. As part of this commitment, a group of leading companies, and their sustainability and finance professionals, are now at the forefront of the climate finance agenda. Through their commitment, these businesses are demonstrating to the financial community the resilience of their business models to climate-related risks, as well as their readiness to capitalize on the opportunities a transition to a lower carbon economy presents. 5th International Reporting 3.0 Conference June 12-13, 2018 | Amsterdam This year’s Reporting 3.0 Conference will feature final findings from all four Reporting 3.0 Blueprints and will profile pilot projects of companies and others implementing Blueprint Recommendations under the Beta Testing Program. It will also feature the formal launch of the Global Thresholds & Allocations Council, a body of respected experts to vet and validate thresholds for the carrying capacities of the multiple capitals and methodologies for companies to set fair share allocations for access to those capital resources. PRI in Person 2018 September 12-14, 2018 | San Francisco, USA PRI in Person is the leading global conference on responsible investment, offering a platform for PRI signatories and other investment professionals to learn, network and collaborate in person over a three day period. The annual event allows attendees to discuss topical issues and share experiences from their own organisation and region with peers from around the world. UNCTAD World Investment Forum 2018 October 22-25, 2018 | Geneva, Switzerland Established in 2008, the UNCTAD World Investment Forum (WIF) is the pre-eminent global forum for investment policy-making. It is a platform for multi-stakeholder dialogue on investment in sustainable development and strives to achieve actionable outcomes for the world’s investment related challenges. Registration is now open here, and find the preliminary programme here.

CONSULTATIONS

Consultation on Guernsey Green Fund Deadline: June 1, 2018 The Channel Island of Guernsey is preparing to launch the world’s first regulated green investment fund product, the local regulator announced today. The island’s financial services regulator, the Guernsey Financial Services Commission (GFSC), has published a set of draft green fund rules for consultation. SSE report on how securities regulators can support the SDGs Deadline May 14, 2018 The UN SSE initiative launched the zero draft of a report being developed with the guidance of a multi-stakeholder advisory group on securities regulation for sustainable development. This initial draft of the report is now open for comment from members of the advisory group until 14 May, 2018. Two more drafts will open for comment, and the final report will be presented on 23 October at the SSE Global Dialogue. If you would like to request to be included in the SSE's advisory group to review this report and help guide its development, contact Tiffany: Tiffany.grabski@sseinitiative.org  

GENERAL NEWS

World Federation of Exchanges published the third volume of its Annual Statistics Guide April 27, 2018 The WFE’s Annual Statistics Guide is a compendium of 2016/17 annual data for the cash, bond and derivative markets. The data is presented in statistical tables that consolidate information from monthly reports and an annual survey. Access the entire Excel data guide here, and the related infographic by clicking here. NYSE community celebrates Earth Day April 27, 2018 This article highlights the work of NYSE listed companies around promoting sustainability. Shenzhen Stock Exchange regulation on environmental disclosure April 25, 2018 The Shenzhen Stock Exchange has implemented measures to construct a disclosure system for the environmental protection of listed units and to strengthen relevant disclosure regulation. Bursa Malaysia introduces BURSASUSTAIN, a one-stop hub on corporate governance and sustainability April 24, 2018 BURSASUSTAIN was developed with the aim of providing users (i.e. listed issuers, investors and other stakeholders) with ease of access to current information on corporate governance, sustainability as well as responsible investment. BURSASUSTAIN contains webcasts, case studies, commentaries, videos, reports, e-learning and weekly news updates from both local and international sources. Nigerian Stock Exchange signs MoU with RecyclePoints Limited April 24, 2018 The Nigerian Stock Exchange (NSE) announced that it signed a Memorandum of Understanding (MoU) with RecyclePoints Limited for the collection and recycling of waste materials generated at the exchange’s offices. Shanghai Stock Exchange holds AOSEF member conference April 20, 2018 At the one-day conference hosted by the Asian and Oceanian Stock Exchange Federation (AOSEF) representatives discussed a wide variety of topics, including regulation, industry trends, impact investment, environmental and social issues, sustainable development goals and how to facilitate interorganizational collaboration. B3 partners with Columbia Center on Sustainable Investment (CCSI) April 20, 2018 B3, the Brazilian stock exchange, was selected by the Columbia Center on Sustainable Investment (CCSI), Columbia University's research center, to be a partner in a scholarship program funded by the Emerging Market Sustainability Dialogues Challenge Fund. The partnership aims to promote transparency of socio-environmental practices and their value to investors. Deutsche Börse and Hessian Ministry of Economics bundle sustainability initiatives in Frankfurt April 11, 2018 Deutsche Börse’s Accelerating Sustainable Finance Initiative and the Green Finance Cluster Frankfurt of the Ministry of Economic Affairs for Hesse announced they will be merging under the name the name Sustainable Finance Cluster. The aim is to make greater efficient use of financial market expertise in the area of sustainable finance, based on broad dialogue and, most importantly, to develop and implement specific approaches to ensure the sustainability of national and international financial market structures in the future. London Stock Exchange says climate change mitigation should be viewed as business opportunity April 11, 2018 According to the sustainability manager of the London Stock Exchange Group, Sara Lovisolo, businesses and investors should focus more on measuring and reporting the positive impacts of sustainability efforts rather than purely analysing the risks posed by climate change. New guide: A4S Essential Guide to Strategic Planning, Budgeting and Forecasting April 10, 2018 This guide from Accounting for Sustainability (A4S) helps finance teams to navigate the complexity of a changing world by providing tools, practical examples and guidance on how to integrate sustainability into strategic planning, budgeting and forecasting. There is also a launch event on May 11; details are here. Bolsa de Comercio de Santiago develops a new segment of green and social bonds April 10, 2018 In line with its interest in developing the capital market and offering new investment alternatives at the local level the Santiago Stock Exchange now offers issuers and investors a new fixed-income segment focused on green and social bonds. The Green and Social Bonds segment will allow the registration and negotiation of corporate, banking and government bonds, whose objective is to finance projects that have a positive impact on the environment, on a specific group of the population or a combination of both. Sri Lanka Stock Exchange and the Global Reporting Initiative to deliver ESG guidance April 6, 2018 Expanding its commitment to fostering effective ESG (Environmental, Social and Governance) performance and communication among Sri Lankan listed companies, the Colombo Stock Exchange (CSE) formalized an arrangement with the Global Reporting Initiative (GRI) to provide guidance to listed companies on ESG disclosures in Sri Lanka. GRI and the CSE will jointly undertake surveys and studies amongst listed companies and investors to gauge their knowledge, determine their capacity on sustainability reporting and identify the types of technical assistance and capacity building needed to improve awareness and institutionalize sustainability reporting within their organizations. CSE and GRI will also collaborate to conduct workshops, seminars and other forms of training for representatives of listed companies. Canadian securities regulators to develop new guidance on climate risk disclosures April 5, 2018 The Canadian Securities Administrators – an organization composed of provincial securities regulators – now plans to develop new guidance to help companies comply with existing climate disclosure rules. The CSA said it is also considering putting in place new rules that would require companies to provide more information in areas such as their governance processes relating to material risks and opportunities, as well as how they oversee the identification, assessment and management of material risk.  

ESG INDICES AND PRODUCTS

State Street Global Advisors creates low carbon, high ESG index fund for Australian institutions April 26, 2018 The State Street Low Carbon ESG International Equities Index Trust is the next phase for an index fund launched 18 months ago by State Street Global Advisors, which initially screened out companies involved in tobacco and controversial weapons. The firm is changing the fund’s index to one which, relative to the MSCI World ex Australia index, reduces carbon emissions and reserves intensity by 50 percent, as well as targets a 20 percent improvement in its overall ESG profile. BNP Paribas launches two sustainability ETFs April 23, 2018 BNP Paribas launched two new ETFs providing exposure to European and Japanese equities with strong ESG characteristics. The new funds, which select constituents based on data from MSCI ESG Research are available to trade on Xetra and Börse Frankfurt. ETFs for Earth Day April 20, 2018 Intercontinental Exchange (ICE) published a list of nearly 40 ESG-related indices that provide investors with tools to pursue sustainable finance opportunities. These are all administered, calculated or published by ICE Data Indices. This list can also be accessed here. Research Affiliates launches RAFI ESG strategy April 20, 2018 Research Affiliates has launched a new index suite combining its trademark Research Affiliates Fundamental Index (RAFI) methodology with metrics for ESG screening including financial discipline and gender diversity. The financial discipline score uses metrics that are associated with generating sustainable long-term performance. The diversity score uses metrics to determine a firm’s commitment to gender diversity, with particular attention paid to women in management, in the C-suite, and on company boards. JPMorgan launches ESG emerging market bond index April 18, 2018 JPMorgan launched a new emerging market bond index (JESG index) in cooperation with BlackRock that takes ESG factors into account. The JESG index will score more than 170 countries and more than 650 issuers on data provided by research providers Sustainalytics and RepRisk as well as the Climate Bonds Initiative (CBI). London Stock Exchange welcomes Fiji's first international green bond April 18, 2018 The London Stock Exchange Group welcomed Fiji’s first international green bond to start trading on the green bond segment of its International Securities Market (ISM). Proceeds from Fiji’s green bond will be used to finance the sustainable management of natural resources, renewable energy, water and energy efficiency, as well as clean and resilient transport and waste water management. BlackRock to launch gun-free ESG ETFs April 6, 2018 The firm will launch two new gun-free ETFs and will implement explicit screens for civilian firearms manufacturers and retailers in its existing bond and equity ESG ETFs.  

MANAGEMENT NEWS

Goldman's Schwimmer to steer London Stock Exchange through Brexit April 13, 2018 The London Stock Exchange named Goldman Sachs’ veteran David Schwimmer as chief executive officer, with an initial challenge of helping the 300-year-old institution to navigate Brexit. Schwimmer, a 49-year old New Yorker who has been with Goldman for 20 years and most recently served as global head of market structure and global head of metals and mining in investment banking, takes up the role at the start of August.

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.