February monthly news highlights

27 February 2019

This month includes news from Rwanda RSE/CMA, TMX, LuxSE, Tadawul, Moscow, Eurex, SET, WFE, Shanghai, Nasdaq Nordic, ESMA, NSE Kenya, Euronext Lisbon, Nasdaq Dubai, BME 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, IFC team up with Rwanda CMA and Stock Exchange to strengthen ESG disclosure 26 February 2019 IFC, a member of the World Bank Group, has partnered with the UN Sustainable Stock Exchanges (SSE) initiative, the Capital Market Authority in Rwanda (CMA) and the Rwanda Stock Exchange (RSE) to raise environmental, social, and governance (ESG) standards of listed companies in Rwanda. At a roundtable in Kigali, the partners provided an overview on the strategic value and demand for better annual reporting and disclosure practices. Toronto Stock Exchange joins United Nations Sustainable Stock Exchanges 7 February 2019 The Toronto Stock Exchange (TSX), the twelfth largest market exchange in the world by market capitalization, signed a commitment to promote sustainability and transparency in its market, making it the newest member of the United Nations Sustainable Stock Exchanges (SSE) initiative. TSX and its sister exchange the TSXV Venture Exchange (both members of the TMX Group) join 83 other exchanges globally that are committed to promoting the advancement of sustainability in capital markets. EVENT: 2019 Ring the Bell for Gender Equality March 2019 In celebration of International Women’s Day (8 March 2019), the Sustainable Stock Exchanges initiative is pleased to announce the continuation of stock exchanges around the world hosting a bell ringing ceremony to raise awareness of the pivotal role the private sector can play in advancing gender equality to achieve the UN’s Sustainable Development Goal 5. Follow the events on our twitter feed.

CONSULTATIONS

IOSCO invites comments on Sustainable Finance in Emerging Markets and the Role of Securities Regulators report Due 1 April 2019 IOSCO´s Growth and Emerging Market Committee (GEMC) published the consultation report Sustainable finance in emerging markets and the role of securities regulators, which proposes 11 recommendations for emerging market member jurisdictions to consider when issuing regulations or guidance regarding sustainable financial instruments. Among other things, the recommendations propose requirements for disclosure of material Environmental, Social and Governance (ESG) specific risks, aimed at enhancing transparency. International Organisation of Pension Supervisors (IOPS) Public Consultation on ESG Due 11 March 2019 In January IOPS launched their public consultation on the draft “IOPS Supervisory guidelines on the integration of environmental, social and governance (ESG) factors in the investment and risk management of pension funds”. A copy of the draft IOPS Supervisory guidelines is available from the IOPS website. Comments on the guidelines may be sent to the IOPS Secretariat, Dariusz Stanko at dariusz.stanko@oecd.org by 11 March 2019.  

STOCK EXCHANGE NEWS

LuxSE’s Julie Becker on finance with purpose: investing in the future 27 February 2019 Have you ever asked yourself “WHY are you working in the financial sector?” or “What is the purpose of your job?”. Julie Becker believes the financial industry should ensure social prosperity for everyone. Listen to her reasoning and vision for the finance of the future. Tadawul unveils structural changes to Nomu Parallel Market for small-and medium-sized enterprises 27 February 2019 The Saudi Stock Exchange (Tadawul) announced today a series structural changes to Nomu - the Parallel Market aimed at supporting the growth, development and sustainability of the market, increasing the number of listed companies on Nomu and enhancing the market liquidity. Moscow Exchange hosts discussion on the future of sustainable finance 26 February 2019 A conference on ‘Sustainable Finance: Green Bonds and ESG’ organized by S&P Global Ratings was held at Moscow Exchange’s offices on 26 February 2019.The conference brought together representatives of Russia’s largest issuers, banks, development groups, institutional investors and the Central Bank of Russia. SET embraces libraries nationwide to reduce carbon emissions 18 February 2019 The Stock Exchange of Thailand (SET) jointly with the Thai Library Association (TLA) under the Royal Patronage of H.R.H. Princess Maha Chakri Sirindhorn is launching the “Library: Care the Bear” project by adopting green initiatives in libraries such as promoting digital libraries, e-books, green travelling such as using bicycles reducing the use of paper and plastic and recycling waste. The project will be participated by over 600 libraries nationwide aiming to tackle climate change, in line with the United Nations Sustainable Development Goals (SDGs)’s Goal 13: Climate Action. The World Federation of Exchanges agrees 2019 priorities 14 February 2019 The World Federation of Exchanges (“WFE”), the global industry group for exchanges and CCPs, has agreed its 2019 business priorities will focus on the following areas: regulatory coherence or market fragmentation; technology-related policy work on topics including initial coin offerings (ICOs), crypto assets and cyber resilience; environmental, social and governance (ESG) issues in market structure; clarifying the nature of market data; and CCP-related capital matters. Shanghai Stock Exchange, Shanghai Environment and Energy Exchange hold Green Investment Seminary and MOU signing ceremony 12 February 2019 Upon the signing of this MOU, the SSE and the SEEEX will take advantage of their resources to intensify domestic and overseas cooperation in green finance and jointly promote the research and development of green securities index and securities investment fund products. Over 100 representatives from fund companies and listed companies took part in the activity. Nasdaq Nordic sustainable debt market doubled in 2018 01 February 2019 Issuance on the Nordic exchange’s sustainable debt market  doubled to just over €8bn ($9.2bn) last year, up from €3.8bn in 2017. In August last year Nasdaq Nordic’s sustainable debt market also reached 100 listed green bonds.  

REGULATOR NEWS

ESMA publishes responses to its consultations on sustainable finance 25 February 2019 The European Securities and Markets Authority (ESMA) has published the responses received to its Consultations on integrating sustainability risks and factors in MiFID II, and in the UCITS Directive/AIFMD. Kenya: Green bonds legal, regulatory framework launched 20 February 2019 As part of the strategy of diversifying products in the Kenyan capital markets, the frameworks to issue listed and unlisted green bonds were launched recently. Issuers of unlisted or listed green bonds in Kenya will be required to appoint an independent verifier to conduct a pre-issuance review and confirm to the investors, the Authority, and the Nairobi Stock Exchange(NSE) in the case of listed green bonds, that the issuance is eligible to be classified as a green bond in line with green guidelines and standards.  

ESG INDICES AND PRODUCTS

Sociedade Bioeletrica do Mondego issues first Green Bonds to be listed on Euronext Lisbon 27 February 2019 Euronext is pleased to announce the first issuing of Green Bonds1 to be listed on Euronext Access Lisbon. Sociedade Bioelétrica do Mondego, S.A. (“SBM”) has issued a 10 year EUR 50 M emission with an interest rate of 1,9%. Accordingly to the company, the 50 M€ issuance will finance the construction of a new biomass power plant Eurex is the first exchange to offer sustainable ESG futures. 26 February 2019 Eurex is the first derivatives exchange to consider sustainability criteria for a European benchmark. In February 2019 Eurex listed futures on STOXX® ESG-X, Low Carbon and Climate Impact Indices, in response to increasing customer enquiries. Nasdaq Dubai welcomes listing of two green Sukuk totalling USD two billion by Government of Indonesia 20 February 2019 Nasdaq Dubai welcomed the listing today of two Sukuk by the government of Indonesia, one valued at 1.25 billion US dollars and the other at 750 million US dollars.  Capital raised by the Sukuk is intended for projects including sustainable development initiatives. BNP Paribas Asset Management launches socially responsible credit ETF 19 February 2019 BNP Paribas Asset Management announces the launch of a socially responsible credit exchange-traded fund, BNP Paribas Easy € Corp Bond SRI Fossil Free UCITS ETF.  This is a tracker that replicates the Bloomberg Barclays MSCI Euro Corporate SRI Sustainable Reduced Fossil Fuel Index.  It provides investors with low carbon exposure to around 400 euro-denominated investment grade bonds, selected using environmental, social and governance (‘ESG’) criteria. Madrid regional government registers a new sustainable bond issue in BME 14 February 2019 The Madrid regional government has registered a new benchmark sustainable bond issue with AIAF, BME’s Fixed Income market, for an amount of 1.25 billion euros. This is the fifth sustainable bond issue registered with AIAF by this Public Administration, following those launched since 2016. IFC invests in AC Energy green bonds to support renewable development 12 February 2019 The private arm of the World Bank, IFC has announced the commitment of $75 million in investment into AC Energy green bonds for renewable energy development in the Asia Pacific region. IFC’s investment anchored a $300 million green bond, attracting interest from international and Philippine institutional and bank investors and opening up more financing for renewable energy projects in the Asia Pacific region. Amundi expands SRI range with new emerging market equity ETF 1 February 2019 Amundi ETF has expanded its Socially Responsible Investing (SRI) ETF range with the launch of Amundi Index MSCI Emerging Markets SRI. This launch adds to Amundi ETF’s SRI range, which already includes three equity ETFs exposed to the MSCI Europe SRI, MSCI USA SRI and MSCI World SRI indices, and two fixed income ETFs tracking Euro and US corporate bond SRI indices. Solactive launches ESG screened index series 1 February 2019 Solactive AG has launched a new line of ESG screened indices in the equity and fixed income space. Solactive ISS ESG Screened Index Series aims to track various size and regional segments of the global capital markets, such as Japan, the United States, Europe, and Developed Markets, including only companies that have a record of low involvement in controversial areas, according to market standards on ESG controversy screens. FTSE Russell launches FTSE UK 100 ESG Select Index 1 February 2019 The index is designed to help investors align investment and ESG objectives into their passive investments. The index will measure the performance of the top 100 companies demonstrating strong Environmental, Social and Governance (ESG) practices within the FTSE All-Share Index. The index uses FTSE Russell’s transparent, rules-based ESG Ratings and data model to select companies for inclusion. NIB lists Nordic–Baltic Blue Bond on Nasdaq Nordic Sustainable Debt Market 1 February 2019 On 1 February 2019, Nordic Investment Bank listed its inaugural Nordic–Baltic Blue Bond for water management and protection on Nasdaq Stockholm. The listing marks the first blue bond on Nasdaq’s Nordic Sustainable Debt Market. The five-year SEK 2 billion bond supports the Bank’s lending to selected wastewater treatment projects, prevention of water pollution and water-related climate change adaptation.  

MANAGEMENT NEWS

SASB names former World Bank Official as new Chief Executive 26 February 2019 The SASB Foundation, an independent non-profit responsible for the funding and oversight of the Sustainability Accounting Standards Board (SASB), has announced that Madelyn Antoncic has been appointed to serve as the organization’s new Chief Executive Officer effective February 25, 2019.  A former Vice President and Treasurer of the World Bank, Ms. Antoncic has held leadership and management roles for over 30 years in large, complex, global financial institutions in both the private and public sector.

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.