This month includes news from B3, LSEG, Nasdaq, SGX, SIX, 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
The UN SSE welcomes two new partners exchanges – Q3 202120 August 2021
Iran Fara Bourse Securities Exchange and the Kyrgyz Stock Exchange have solidified their commitment to transparency and sustainability by becoming a member of the UN Sustainable Stock Exchanges initiative. The SSE’s newest member joins a network of now 108 stock exchanges around the world that are committed to promoting sustainable development.
The UN SSE Q3 2021 Quarterly Webinar: Net-zero TransitionUpcoming event: 8 September 2021 at 09:00 and 16:00 Geneva Time
In the Q3 webinar, we will discuss the push for net-zero commitments and their meaning for exchanges, what kind of initiatives could be relevant to meet the net-zero challenge, and how SSE members can get involved and prepared now.
SSE TV channel: new episodes available31 August 2021
The UN SSE has released new episodes of conversations with Sandy Frucher (Former Vice Chairman - Nasdaq), Mohamed Farid (Executive Chairman - EGX), Ashish Chauhan (CEO - BSE), Julie Becker (CEO - LuxSE) and many other thought leaders of the market infrastructure ecosystem that share their sustainability experience with the broader financial market and policymaker community.
STOCK EXCHANGE NEWS
SIX Group: An index-led push for Swiss gender workplace equality03 August 2021
The SPI Gender Equality Index represents companies within the universe of the 100 biggest SPI firms that have more than 20 percent women on the board of directors and more than 15 percent on the management/executive board.
Nasdaq: A framework for our post-pandemic global markets03 August 2021
Investors now increasingly demand ESG, including diversity in executive leadership and boards, as integral to their investment decisions. Global exchanges should align on and work to meet the growing demand from investors on ESG priorities, fostering a sustainable, inclusive capitalism that expands fair access for all.
KASE: laying the foundations for sustainable investment03 August 2021
Kazakhstan Stock Exchange (KASE) understands its role in increasing ESG awareness and promoting ESG standards in the local capital market, aims to further facilitate good ESG practices, transparency and encourages companies to become more sustainable on a long-term basis for a better sustainable future for all.
TMX: Sustainability is an Opportunity for Small and Mid-Capitalization Companies03 August 2021
Small- and mid-cap companies may not necessarily have the most robust ESG tracking and disclosure practices, but smaller companies with simple operations have a unique opportunity to move the needle quickly on these issues.
Shanghai Stock Exchange: The role of capital markets in decarbonising the future03 August 2021
By connecting policies with markets, as well as linking issuers with investors, the Shanghai Stock Exchange has made relentless efforts to attain carbon neutrality for capital markets. This article brings more explanation about the exchange’s ‘Five Pillars’ of carbon neutrality strategy and its impact in the Asian Market.
Santiago Exchange: Setting Chile on the road to a sustainable future03 August 2021
Santiago Exchange’s challenge is to continue working to have a deeper, and most importantly, more sustainable market in the long term. The plan is to continue promoting responsible investment and incorporating more sustainable alternatives for the different market players, committing to the well-being of youth and future generations.
Bahrain Bourse: The ESG journey for sustainable and resilient markets22 August 2021
Companies in Bahrain are expected to create shared value and inclusive growth, to assess their impacts on capitals and resources, and to contribute national, regional, and global visions and plans, such as accelerating the fulfillment of the UN SDGs.
SGX joins Hong Kong exchange in moving to tighten climate rules26 August 2021
The Singapore Exchange intends to tighten its sustainability reporting rules over the next three years, as it joins the ranks of Asian bourses pressing companies to take action on climate change.
B3 Brazil Pioneered ESG in the Brazilian Market27 August 2021
Nasdaq - Era of Impact: B3 pioneered the dissemination and promotion of the ESG agenda in the Brazilian market in the early 2000s. It is B3’s understanding that integrated management aligned with best ESG practices plays a decisive role in the sustainable development of its business.
Hong Kong Exchanges Signs MOU with Guangzhou Futures Exchange27 August 2021
Hong Kong Exchanges and Clearing Limited (HKEX) has signed a Memorandum of Understanding (MOU) with the Guangzhou Futures Exchange (GFEX) for strategic cooperation in promoting sustainability and facilitating the development of the Guangdong-Hong Kong-Macao Greater Bay Area.
Shanghai and Shenzhen Stock Exchange supports the high-quality development of a green, low-carbon economy27 August 2021
Leading the shift to “green development” to achieve sustainable results the Shanghai and Shenzhen Stock Exchanges have been carried out environmental information disclosure and green index compilation in addition to adopting a series of measures to guide the transition of the market, which has been achieving positive results so far.
LSEG launches dedicated sustainable finance innovation unit in Singapore01 September 2021
London Stock Exchange Group (LSEG) has launched a dedicated sustainable finance innovation unit in Singapore. As part of its new LSEG Labs network, the unit will be focused on creating sustainable capabilities to accelerate innovation and advanced technology across the country’s fintech ecosystem, supported by the Monetary Authority of Singapore (MAS).
REGULATOR AND STANDARD SETTER NEWS
US SEC markets regulator approves Nasdaq proposal to require corporate board diversity07 August 2021
The U.S. Securities and Exchange Commission approved a proposal from stock exchange operator Nasdaq that requires its listed companies to have diverse boards or explain why they do not. Board Diversity Proposal
UK: National Audit Office issues guide on climate change risk09 August 2021
The National Audit Office (NAO) has issued a good practice guide ‘Climate change risk: A good practice guide for Audit and Risk Assurance Committees’ aimed at supporting Audit and Risk Assurance Committees (ARAC) in challenging senior management in the public sector.
EU SFDR: laying the foundations of a stronger sustainable investment market12 August 2021
With the introduction of the EU Sustainable Finance Disclosure Regulation (SFDR) larger financial firms will have to begin disclosing the “Principal Adverse Impacts” their investments have on social and environmental issues.
Chile readying mandatory ESG reporting rules19 August 2021
Chile’s securities regulator CMF is preparing to unveil within the next 10 weeks draft rules which establish that issuers of publicly traded securities must provide ESG information in their annual reports.
Thailand to develop sustainable finance taxonomy and ESG disclosure rules19 August 2021
Thailand has become the latest Asian country to embark on the development of a sustainable finance taxonomy, following in the footsteps of regional neighbors Malaysia and Singapore.
GRI: Doubling Down on Double Materiality in Sustainability Reporting27 August 2021
In a recent interview, Global Reporting Initiative Chair Eric Hespenheide shows optimism about the future of sustainability reporting standards. As part of its commitment to double materiality across sustainability reporting, Hespenheide also added that the GRI will continue to engage with companies to better understand their S and G impact.
ESG INDICES AND PRODUCTS
BlackRock Bottom Line: UN SDGs with Carole Crozat03 August 2021
The UN Sustainable Development Goals are key to fighting climate change and reaching a net-zero future. So, why do they matter for investors? Carole Crozat explains on BlackRock Bottom Line.
CME Group: Providing a standardised platform for managing global emissions price risk03 August 2021
CME Group and Xpansiv market CBL jointly developed the CBL Global Emissions Offset (GEO) futures contract to help solve the difficult task to mitigate climate risk without a universal pricing benchmark. GEO futures provide a way for market participants across various sectors and geographical borders to manage their price risk.
B3: Brazil’s carbon credits highlight the market for innovative environmental products03 August 2021
In order to strengthen its portfolio of ESG products and new markets associated with the sustainable finance agenda, B3 has developed an OTC platform for registering and trading carbon credits, known in Brazil as CBIOs.
Invesco expands ESG ETF range with solar energy product05 August 2021
Invesco has listed an ETF on the London Stock Exchange (LSE) which focuses on global companies that are leading the world in solar energy technology, the MAC Global Solar Energy Index, which was developed by solar industry experts and is administered and calculated by S&P Dow Jones Indices.
GSIA: Over a Third of All Global Assets Are in Sustainable Investments16 August 2021
Sustainable investments have gained momentum, accounting for more than a third of all assets globally. According to the Global Sustainable Investments Alliance (GSIA), sustainable investments accounted for 35.9% of total assets under management at the start of 2020.
Euronext: Mexico’s Bancomext list a $500 million sustainability bond on GEM24 August 2021
Mexico’s Banco Nacional de Comercio Exterior (Bancomext) lists a $500 million sustainability bond on Global Exchange Market (GEM). Bancomext joins almost 300 issuers choosing to list their ESG bonds on Euronext market network.
Moody's ESG Solutions Launches Data Solution to Help Investors Align with UN SDGs27 August 2021
Moody’s ESG Solutions launched SDG Alignment Screening, a data solution that helps investors integrate the United Nations (UN) Sustainable Development Goals (SDGs) into SDG-aligned investment strategies, funds, indices, and reporting.
Bursa Malaysia: Why ESG Risks Matter For Businesses30 August 2021
In this month’s issue, Datuk Muhammad Umar Swift, CEO of Bursa Malaysia shares three reasons why he believes management of ESG risks should be a top priority for businesses.
UBS AM unveils global small-cap ESG ETF
31 August 2021
UBS Asset Management has partnered with MSCI to launch a global small-cap socially responsible investing (SRI) ETF. The UBS ETF MSCI World Small Cap Socially Responsible UCITS ETF (WSCR) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, and the SIX Swiss Exchange
BlackRock launches Europe’s first global aggregate bond ESG ETF31 August 2021
BlackRock has launched Europe’s first ETF that offers exposure to the ESG version of Bloomberg’s global aggregate bond index. The iShares Global Aggregate Bond ESG UCITS ETF (AGGE) is listed on Euronext and Deutsche Boerse.
