July monthly news highlights

28 July 2018

This month includes news from BVM, BCBA, Ljubljana, Borsa Italiana, HKEX, BME, Bursa Malaysia, Nigeria, NYSE, EGX, SET, JPX, LSEG, Shenzhen, Nasdaq Nordics 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

Mexico and Argentina join forces to grow green finance: Spanish version of the SSE action plan launched 18 July 2018 The Mexican Stock Exchange (BVM), the Buenos Aires Stock Exchange (BCBA) and the United Nations Sustainable Stock Exchanges Initiative (SSE) launched the Spanish version of the SSE Action Plan on Green Finance on 18 July, coinciding with the G20 meetings in Buenos Aires. The two exchanges worked with the SSE in order to further advance in green financing throughout the region. If you would be interested in supporting the translation of an SSE guidance document, please email us: info@sseinitiative.org Exchange in Focus: Ljubljana Stock Exchange Launches SME Pre-Listing Programme 18 July 2018 The Ljubljana Stock Exchange, an SSE partner exchange since May 2018, has launched an SME Pre-listing Support Programme to help SMEs gain entry to capital markets and access to funding. As part of the process, it is hoped the SMEs will also adopt higher standards of corporate governance and reporting. IOSCO having active dialogue on sustainability 9 July 2018 The International Organization of Securities Commissions (IOSCO) brought together a group of regulators, stock exchanges, investors, issuers, financial services providers, civil society and international organizations to discuss the role securities regulators have in encouraging sustainable investment. The UN SSE initiative was the only United Nations representative present at the dialogue, and presented their work stream on capital market regulation and the SDGs. Italian Sustainability Day: Borsa Italiana grows ESG dialogue, second year in a row 2 July 2018 For its second year running, Borsa Italiana hosted its Italian Sustainability Day bringing together both issuers and investors to exchange views on ESG strategies, sustainability data and reporting methods. More than 500 participants registered for the event, up from 300 participating in the inaugural event last year. EVENT: UN SSE 2018 Global Dialogue 23 October 2018 | Geneva, Switzerland The SSE flagship Global Dialogue is a unique global gathering designed to bring together market leaders to analyze, promote and foster communication on stock exchanges’ sustainability initiatives. You can now find the speaker list for this year's SSE Global Dialogue online here.  

WEBINARS AND EVENTS

SASB Open House 2018 11 September 2018 | San Francisco, USA SASB welcomes attendees of PRI In Person 2018 to an Open House at our San Francisco office. Learn more about SASB's sustainability standards and how standards can help support a range of ESG integration activities. Join us for a discussion on how SASB can help investors implement the UN PRI's Principles for Responsible Investment. PRI in Person 2018 12-14 September 2018 | San Francisco, USA PRI in Person is the leading global conference on responsible investment, offering a platform for PRI signatories and other investment professionals to learn, network and collaborate in person over a three day period. The annual event allows attendees to discuss topical issues and share experiences from their own organisation and region with peers from around the world. UNCTAD World Investment Forum 2018 22-25 October 2018 | Geneva, Switzerland Established in 2008, the UNCTAD World Investment Forum (WIF) is the pre-eminent global forum for investment policy-making. It is a platform for multi-stakeholder dialogue on investment in sustainable development and strives to achieve actionable outcomes for the world’s investment related challenges. Registration is now open here, and find the preliminary programme here. 2018 UNEP-FI Global Roundtable and Paris Climate Finance Day 26-28 November 2018 | Paris, France UN Environment Programme Finance Initiative (UNEP FI) and Finance for Tomorrow, an initiative of Paris EUROPLACE, are joining forces to stage three days of action on sustainable finance in the city where decisive action on climate change was finally taken in 2015. The 4th Climate Finance Day and the UN Environment Finance Initiative’s biennial Global Roundtable will take place in Paris from 26-28 November 2018.  

CONSULTATIONS

SSE Regulator Guidance Deadline: 20 August 2018 The UN SSE initiative has sent out the second draft of a report being developed with the guidance of a multi-stakeholder advisory group on securities regulation for sustainable development. This draft of the report is now open for final comments from members of the advisory group until August 20, 2018. The final report will be presented on 23 October at the SSE Global Dialogue. If you would like to request to be included in the SSE's advisory group to review this report and help guide its development, email Tiffany.grabski@sseinitiative.org The Investor Agenda Deadline: 31 August 2018 Ceres launched a call for investors to showcase how they are integrating climate change into the investment process. The information will be highlighted at the PRI in Person and the Global Climate Action Summit. GENERAL NEWS
Hong Kong publishes new corporate governance guidance 27 July 2018 HKEX published a new “Guidance for Boards and Directors” to help directors carry out their role more effectively.
 
BME: MAB reaches 100 growth companies of small and medium capitalisation funded 26 July 2018 MAB, BME’s Growth Market, today admitted TESTA to trading, marking the 100th company to join this market since its creation, whose combined capitalisation already exceeds 11 billion euros. So far this year 16 new companies have joined this market operated by BME. MAB launched in 2009 to make it easier for small capitalisation companies seeking to expand to gain access to the market by means of an ad-hoc regulation, designed specifically for them and with costs and processes tailored to their characteristics.
 
IOSCO to launch 2018 World Investor Week to promote investor education 25 July 2018 The International Organization of Securities Commissions (IOSCO) is preparing to launch its second annual World Investor Week (WIW) from 1 through 7 October 2018, following the success of last year´s event in promoting investor education and protection and highlighting the various initiatives of securities regulators in those two areas around the globe. The SSE is a supporter of this event. Access their website here.
 
Bursa Malaysia's efforts paving the way for responsible and green finance in Malaysia 24 July 2018 Proactive efforts and strong commitment of Bank Negara Malaysia, Securities Commission  (SC) and Bursa Malaysia have paved the way for both responsible and green finance to thrive in Malaysia said RAM Ratings. The ratings agency sees Malaysia evolving into an SRI hub.Nigerian exchange launches new rules governing listing of Sukuk and similar debt securities 19 July 2018 The Securities and Exchange Commission approved the new rules, which took effect on 23 July 2018.Canadian securities regulators highlight common deficiencies in issuers disclosures 19 July 2018 Areas where issuers can improve disclosures include, but are not limited to: fair value measurements and disclosures; forward looking information; discussions of issuers’ results of operations and significant projects in development; climate change disclosures; and mineral project disclosure.New York Stock Exchange announces continued commitment to ESG 16 July 2018 NYSE published a Linked in post about its ESG resources on its website, stating that the stock exchange is "committed to serving as an ESG resource for NYSE-listed companies".EGX Chairman participats in OECD conference to promote corporate governace 15 July 2018 The conference witnessed intense presence of government officials, central bank governors and stock market chairpersons to present their experience in developing and improving disclosure and transparency processes. EGX Chairman Mohamed Farid stated that enhancing disclosure and transparency is necessary to increase the efficiency and depth of capital markets, especially in terms of increasing liquidity and trading, and attracting more foreign investment. Farid added that EGX management is keen to raise the awareness among all listed securities about the best practices in periodical disclosure and material information.Thai stock exchange researching social enterprise support 14 July 14 2018 The Stock Exchange of Thailand (SET) is studying the possibility of encouraging social enterprise (SE) businesses to raise funds from the capital market to support business growth and social development simultaneously. The bourse believes social development impact and awareness of environmental, social and governance (ESG) will be the norm for doing business in the future, said Noppakao Sucharitakul, executive vice-president of SET. SET joins Thailand's biggest pension fund to promote sustainable investment 13 July 2018 The Stock Exchange of Thailand (SET) has joined forces with Thailand's Government Pension Fund (GPF) to promote companies listed on SET which focus on environmental, social and governance practices. The two organizations also signed the memorandum of understanding to enhance financial and investment literacy covering over one million GPF members nationwide. Forbes: The remarkable rise of ESG 11 July 2018 Georg Kell, Chairman of asset manager Arabesque Partners and founder of the UN Global Compact writes in Forbes about the growth of the SSE, and of ESG investing. SET holds SET Social Impact Day 2018 to create positive impact on society 12 July 2018 "SET Social Impact Day 2018" event was organized under the theme “Partnership for Better Impact” on July 12 as a platform to bridge business sector and social enterprises (SEs) to jointly create exponentially positive social impacts. The event offers business networks, showcasing social innovations and opening up a marketplace by 29 SEs. Brazilian monetary authority approves new ESG requirements in the investment rules of occupational pension funds 10 July 2018 The Brazilian National Monetary Council (CMN) published Resolution CMN 4.661/2018, which revised the norm that governs occupational pension funds’ investments. The new norm requires pension funds’ asset managers to consider environment, social and governance (ESG) risks as part of their investment decision making process. JPX and LSEG to coorporate in sustainable investment and product marketing 9 July 2018 Japan Exchange Group, Inc (JPX) and London Stock Exchange Group plc (LSEG) have begun identifying areas for mutual collaboration and innovation across the full spectrum of ESG investment finance. Both Groups want to further deepen ties in order to expand the range of services offered to listed companies and investors across capital markets in Japan, the UK, and globally. The initial focus will be on joint marketing activities to promote listing products, especially those related to ESG. ASCI report finds the ASX 200 are getting better at reporting on climate risk 9 July 2018 The Australian Council of Superannuation Investors (ACSI) has released its eleventh annual report on the extent of sustainability disclosures by Australia's 200 largest listed companies: Corporate Sustainability Reporting in Australia: An Analysis of ASX 200 disclosure.  Overall, the report found that the extent of sustainability reporting improved over the course of the last twelve months.  The report also identified an 'emerging trend' towards ASX 200 companies adopting international reporting frameworks. Shenzhen Stock Exchange strengthens supervision over disclosure  4 July 2018 Recently, SZSE completed the post-review of 2017 annual reports of the SZSE bonds. As of now, SZSE has sent letters of annual report inquiries to 211 bond issuers, which accounts for 31% of the total number of issuers who have disclosed annual reports. More than 1,000 questions have been asked to these issuers.Four main lines to track and trace: information disclosure, financial accounting, fundraising, and corporate governance compliance Stock exchange role increasingly recognized for driving change 3 July 2018 Flavia Micilotta, Director of Eurosif, writes: "Stock exchanges are an indispensable player and a key actor of the financial system. They are able to help business, stimulate growth, create jobs, while connecting diversified players through their interconnected networks. They are at the forefront of regulatory changes, innovation and standards. Their role is increasingly recognized and so is their potential for driving change."  
ESG INDICES AND PRODUCTS
Nigerian stock exchange lists Green Bond 20 July 2018 The Nigerian Stock Exchange on Friday announced the listing of the N10.69bn, five-year Federal Government Sovereign Green Bond at a coupon rate of 13.48 per cent on the bourse by the Debt Management Office
 
How the first nonprofit ETF issuer can change socially responsible investing 19 July 2018 Impact Shares, the first 501(c)(3) nonprofit ETF platform, collaborated with the National Association for the Advancement of Colored People (NAACP) to launch the Impact Shares NAACP Minority Empowerment ETF.
 
S&P DJI launches index series incorporating impact of carbon price risk 19 July 2018 S&P Dow Jones Indices has launched the S&P Carbon Price Risk Adjusted Indices, a global index series which re-weights constituents of indices such as the S&P 500 to account for estimated market valuation risk from forecast 2030 carbon prices. The indices are the first of their kind to incorporate an assessment of the impact of potential future carbon prices.
 
Egyptian regulator approves green bond framework 18 July 2018 Egypt’s financial regulator approved a legal framework for issuing green bonds, with the aim of providing financial tools to fund eco-friendly projects in the fields of new and renewable energy, construction and transport. “[We] will unveil regulations and measures necessary for the issuance of green bonds in accordance with the best international applications, as part of a partnership with the International Financial Corporation [IFC] and in tandem with the principles of issuing green bonds released by the International Capital Market Association,” said Mohammed Omran, head of the Egyptian Financial Supervisory Authority, according to local media.ICBC lists largest ever green bond on London Stock Exchange 17 July 2018 The Industrial and Commercial Bank of China, one of the country’s biggest commercial lenders, has officially listed a USD1.6 billion equivalent dual-currency multi-tranche green bond on the London Stock Exchange.Nasdaq Nordic launches ESG version of benchmark index 9 July 2018 Nasdaq Nordic is is launching a version of its benchmark OMX Stockholm 30 index that is compliant with environmental, social and governance investing, which it said is the first ESG index based on a leading exchange-traded index.IFC partners with the Moroccan Capital Markets Authority to promote sustainability bond 8 July 2018 The International Finance Corporation (IFC) has partnered with the Moroccan Capital Markets Authority (AMMC) for new financial instruments to address climate change and drive positive social outcomes in the country. “The new guidelines illustrate our continuous efforts to foster green finance to create a more inclusive future for everyone and are also consistent with the kingdom’s objectives to promote sustainable development and help create a regional financial hub,” said Nezha Hayat, CEO and Chairperson of AMMC.RBI lists green bond on Luxembourg and Wiener Boerse 5 July 2018 The issue was preceded by an extensive roadshow throughout Europe. With orders in excess of EUR 1.3 billion, the orderbook was significantly oversubscribed. "The demand for green investment opportunities is growing continuously. With our Green Bond we can meet this demand and at the same time finance sustainable projects in our home market", Martin Grüll, CFO of RBI, said about the issuance. "The high demand and very positive investor feedback show that we are on a very good path with our sustainability initiatives," Grüll said. 

MANAGEMENT NEWS

Euronext appoints Chris Topple as CEO of Euronext London 30 July 2018 Chris Topple, who worked extensively in brokerage and clearing services throughout his career, will oversee sales across all asset classes. He will take up his new role based in London on 15 October 2018. Paul Humphrey, current interim CEO of Euronext London and Head of Global Sales, will remain in his current role as Global Head of FICC. SEC: Elizabeth Baird and Christian Sabella named deputy directors of the division of Trading and Markets 25 July 2018 The Securities and Exchange Commission announced that Elizabeth Baird and Christian Sabella have been named Deputy Directors in the Division of Trading and Markets. Warsaw Stock Exchange: Jakub Modrezejewski elected new chairman of the Supervisory Board 17 July 2018 On 16 July 2018, the Exchange Supervisory Board elected the new Chairman of the Exchange Supervisory Board from amongst its members: former Deputy Chairman of the Exchange Supervisory Board Jakub Modrzejewski, and elected Janusz Krawczyk the Deputy Chairman of the Exchange Supervisory Board. Hong Kong's securities and futures commission welcomes appointment of non-executive directors 13 July 2018 The Securities and Futures Commission (SFC) welcomes the appointment by the Financial Secretary of Mr James C Lin and the re-appointment of Dr William Wong Ming-fung, SC as Non-Executive Directors for a term of two years with effect from 1 August 2018. FTSE Russel appoints Latin American Regional Lead to enhance its presence 10 July 2018 FTSE Russell today announced that Jesus Togno has joined the firm to lead business development and client relationships in Latin America. Based in the firm’s Mexico City office, Togno will focus on managing and growing relationships across the region for FTSE Russell indexes, data, market information and tools. IEX Appoints Boris Ilyevsky to lead market devleopment 9 July 2018 IEX, which operates America’s newest stock exchange, announced the appointment of Boris Ilyevsky to lead market development, as the company enters its next phase of growth and explores potential opportunities for strategic diversification.

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.