Derivatives exchanges partner with the UN on sustainability

19 October 2021

Today at the UNCTAD World Investment Forum, the United Nations Sustainable Stock Exchanges initiative launched the SSE derivatives network. This marks the first time that derivatives exchanges are able to join the SSE as members. This expansion of the membership to include derivatives market operators follows the 2021 publication of a joint SSE-WFE guidance on how derivatives exchanges can promote sustainable development. The SSE was established by the UN Secretary General just over a decade ago and has grown from its original five founding members to over one hundred exchanges. Since its founding, the SSE has worked with stock exchanges, securities regulators and other equity market actors to identify a range of opportunities for exchanges to take action in support of the sustainable development goals.  “We are proud today to be welcoming derivatives exchanges as members of the SSE,” said James Zhan, Chair of the UN SSE. “Since the SSE was launched over a decade ago, sustainable finance has expanded to all corners of the marketplace. All forms of finance will be needed to help us with the historical transition to a net zero emissions world and to achieve the globally agreed sustainable development goals. We welcome the enthusiasm of derivatives exchanges to contribute to some of the world’s most challenging issues and we look forward to working with this community to promote best practices for sustainable development.”    The SSE derivatives network launches with 12 founding members from across the world, namely: ◼ Australian Securities Exchange (ASX) (Australia) Borsa Istanbul (Turkey) Bursa Malaysia (Malaysia)  CBOE Global Markets (United States) CME Group (United States) Deutsche Börse AG / Eurex (Germany) Matba Rofex (Argentina) MexDer (BMV Group) (Mexico) NZX Limited (New Zealand) Singapore Exchange (Singapore) The Intercontinental Exchange (ICE) (United States) TMX Group /Montreal Exchange (Canada) The establishment of this network recognizes the importance of aligning all aspects of financial markets with more sustainable outcomes and the next step in the SSE’s evolution. As part of the network launch, the SSE will expand its existing exchange database to incorporate what derivatives exchanges are doing to advance the sustainability agenda. Cboe CEO Ed Tilly “Cboe Global Markets is proud to be a founding member of the derivatives partner exchanges network of the United Nations Sustainable Stock Exchanges initiative,” said Ed Tilly, Chairman, President and CEO of Cboe Global Markets. “This network will serve as a meaningful platform to share ideas and engage in important dialogue around how derivatives exchanges can support greater sustainability. All exchanges have a role to play in sustainability and by advocating for stronger performance on ESG issues and creating sustainable investment opportunities, the changes we implement today can have a lasting, positive impact on future generations.” ICE Futures Europe President, Stuart Williams “As an early investor in climate markets, we are excited to see the strong growth in recent years as environmental markets become ever more global and ever more critical to the path to net zero by allowing the market to put a price on the cost of emitting. We look forward to working with others in the SSE derivatives network to further explore how the industry can contribute to a more sustainable world.” Borsa İstanbul CEO Korkmaz Ergun “Derivatives’ industry is getting bigger in Turkey, as is the case for many other countries. I believe sustainability should also be one of the central points of derivatives’ trading and, therefore, would like to thank SSE for its efforts to establish such a network among exchanges.” MexDer Managing Director José Miguel de Dios “The Mexican Derivatives Exchange, MexDer, is aware of the environmental and social issues that humanity is facing, and this represents an opportunity for us to move towards a more sustainable derivatives market that contributes to their solution. The market will continue growing and we are prepared to be part of the conversation, encouraging collaboration with stakeholders, driving financial and sustainability awareness through literacy, as well as developing ESG derivative products.” Bursa Malaysia Derivatives CEO, Samuel Ho “Bursa Malaysia Derivatives is pleased to be one of the founding members of this UN SSE Derivatives Exchanges Network,” said Samuel Ho, Chief Executive Officer of Bursa Malaysia Derivatives. “We expect that market participants would benefit greatly from this concerted effort to promote sustainable development of the global derivatives markets. The Exchange will continually assess and expand our universe of sustainability-aligned derivatives products, and look forward to working with SSE partner exchanges to meet this emerging demand.” Deutsche Börse CEO, Dr Theodor Weimer “Sustainability has developed from a niche topic to a fundamental challenge in every aspect of our society. Deutsche Börse has been a strong supporter of the Sustainable Development Goals and the transition towards a more sustainable economy. Increasingly, this will entail the proper management of sustainability risks in global capital markets. I therefore welcome the expansion of the United Nations Sustainable Stock Exchange initiative to include a much-needed structure on derivatives. With our globally leading ESG derivatives exchange Eurex as well as the critical role played by our European Energy Exchange, we stand ready to support this move.”

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.