Exchange in Focus: Euronext new ESG Guidelines for listed companies
19 May 2022
Euronext announced the new edition of its ESG Reporting Guide. The guide is designed to help companies engage in climate change mitigation policies with the support of their investors, and more broadly lists the key aspects to consider when reporting on ESG to make the most of the associated opportunities. This new edition has been revised with a focus on the 1.5°C global temperature increase trajectory, in line with Euronext's “Fit for 1.5°” commitment, one of the key pillars of its “Growth for Impact 2024” strategic plan.
Since its first publication in 2020, the Euronext ESG Reporting Guide has become a reference document for listed companies and their advisers. Drawing on the SSE's Model Guidance on Climate Disclosure, this new version of the Euronext guide takes into account the latest developments in climate-related standards and initiatives, including those applied by investors.
Commenting on the announcement, Anthony Attia, Global Head of Primary Markets and Post-Trade, “I would like to take this opportunity to thank the issuers who contributed to this guide and all those who will engage with us and use the guide going forward. Regulation plays a significant role in ESG reporting, especially in Europe where Euronext operates seven regulated markets. Bearing in mind the developments announced by the European Commission on the introduction of EU sustainability-related standards from 2024, we believe our guide can help fill a gap in the next two years, before the introduction of detailed ESG disclosure rules. It also aims to support SMEs as they navigate this rapidly-evolving environment, by taking into account the challenges of first time disclosure preparers, in particular at small and mid-cap companies.”
In particular, the guide aims to help companies to:
- identify and prioritise ESG opportunities and risks;
- report efficiently on the management of – and performance in – key areas of ESG transformation;
- navigate, comply with and stay ahead of regulations that require disclosure of financially material ESG information;
- differentiate themselves, ensuring the relevance of their ESG strategy in light of rapidly evolving market standards.
It also aims to support SMEs as they navigate this rapidly-evolving environment by taking into account the challenges of companies preparing disclosure for the first time, in particular small and mid-cap companies.
Beyond compliance aspects, companies now have an opportunity to demonstrate leadership and management excellence by aligning their policies and reporting to the highest climate-related standards, in a way that fits their strategic plans and enhances their purpose and mission. This guide is intended to help them on this journey. To walk the talk, Euronext as a listed company and a key financial market infrastructure provider has already committed to science-based targets with a 2030 time horizon and to develop a full suite of climate-related products and services. Euronext “Fit for 1.5 degree” commitment is intended to make a real difference in shaping financial markets for future generations.
To know more about Euronext new ESG reporting guidelines, visit www.euronext.com/en/news/esg-reporting
SSE ESG Guidance Database
There are now 64 stock exchanges around the world that provide ESG disclosure guidance to their issuers. The SSE ESG Guidance Database contains a comprehensive list of all stock exchange ESG guidance documents in the world so that other stock exchanges can learn from their peers.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.
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