Exchange in Focus: Moscow Exchange advancing ESG

Exchange in Focus: Moscow Exchange advancing ESG

31 May 2020

Moscow Exchange (MOEX) has been taking important steps towards the development of responsible investing. It became an SSE Partner in 2019 and in the same year launched the daily tracking of Russia’s first sustainability indices as well as new MOEX’s listing rules providing for the creation of the Sustainability Sector. Detailed information about MOEX sustainable activities can be found in its first Sustainability Report. 
“In recent years, Moscow Exchange has expanded cooperation with leading international organizations, exchanges and financial institutions. MOEX’s decision to join such a large international initiative as the SSE in 2019 once again confirmed our intention to promote the principles of sustainability in the Russian market, promote dialogue between investors and issuers and implement best practices in the field of responsible business.” - Maria Kharlashkina, Deputy Head of the Strategy Department
Sustainability Indices  MOEX has two sustainability indices: the Sustainability Vector Index and the Responsibility and Transparency Index.  The Sustainability Vector Index is based on the stock of 15 issuers that post the best results based on ESG metrics such as atmospheric emissions, consumption of energy and water, wages and social support for employees, and others.  The basis for calculation of the Responsibility and Transparency Index includes (as of the end of 2019) the stock of 22 issuers that lead the way in sustainability reporting. 

Source: MOEX 2019 Sustainability Report

  Sustainability Sector In support of the SSE initiative, Moscow Exchange opened the Sustainability Sector in August 2019. 
“More and more investors are electing to fund socially significant projects that are meant to improve the environmental and social conditions; therefore, Russian business is starting to give more and more thought to compliance with corporate responsibility and ESG-related principles. The new sector will help properly present issuers and investors that specialize in targeted investments, and will also facilitate the financing of companies that implement environmental and social projects. I hope to see many companies becoming issuers in the Sustainability Sector and receiving privileges from development institutions.” - Yury Denisov, Chief Executive Officer of Moscow Exchange
The Sustainability Sector helps organizations raise funds for environmental and social projects. The sector has three independent segments: Green Bonds, Social Bonds and National Projects. The green and social segments may feature bonds offered by various Russian and foreign companies, provided that the issuer, the issuer, or the investment project meet the green or social financing principles, as per the guidelines of the International Capital Market Association (ICMA) or the Climate Bonds Initiative (CBI), and provided that the issuer/project has received an independent outside evaluation that is also compliant with the principles.   SSE Stock Exchange Database SSE Stock Exchange Database keeps track of sustainability activities in more than 100 exchanges around the globe. MOEX is part of a small group that implemented four sustainable characteristics in their markets. As of today, only 17 exchanges have implemented a sustainability-related index, sustainability bond listing segment, an SME listing platform, and publish an annual sustainability report. 

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.