This month includes news from Euronext, KRX, Latinex, SGX, Tadawul, TSX and more. Monthly news highlights are compiled by the SSE to give an overview of the capital markets' sustainability news from that month.
You can subscribe to our monthly news highlights by clicking here.
SSE INITIATIVE NEWS & EVENTS
The UN Sustainable Stock Exchange welcomes two new partners exchanges
02 August 2021
The Honduras Stock Exchange - Bolsa Centroamericana de Valores (BCV) and Royal Securities Exchange of Bhutan (RSEB) have solidified their commitment to transparency and sustainability by becoming a member of the UN Sustainable Stock Exchanges initiative. The SSE’s newest members join a network of now 106 stock exchanges around the world that are committed to promoting sustainable development.
UN SSE launches its new SSE TV channel1 July 2021
The UN SSE has released its new SSE TV channel. The channel, powered by Fintech.TV, is a new global platform for exchange CEOs, Board members, security market regulators, and thought leaders of the market infrastructure ecosystem to share their sustainability experience with the broader financial market and policymaker community. The objective of SSE TV is to facilitate a global dialogue on sustainable finance, peer-to-peer learning, and the sharing of best practices.
SSE launches Gender Equality work with IFC13 July 2021
The UN Sustainable Stock Exchanges (SSE) initiative has launched a new workstream to support exchanges in their efforts to foster gender equality. All SSE’s Partner Exchanges and key stakeholders are invited to participate in the SSE Gender Equality Advisory Group. The new workstream will examine the contribution exchanges can make toward achieving SDG target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision making in political, economic, and public life, as well as the gender-specific targets under the other 16 SDGs.
Derivatives exchanges invited to join UN SSE13 July 2021
The UN SSE is taking the next step in its efforts to make derivatives markets more sustainable by starting a new derivatives exchanges network. This new network will allow derivatives exchanges to become SSE Partner Exchanges and work together with the initiative and its international network to further their sustainability efforts. The new derivatives network and its founding signatories will be announced in October 2021 as part of the UNCTAD World Investment Forum.
SSE delivers keynote address at 2021 China SIF Summery Summit16 July 2021
The 2021 China SIF Summer Summit took place as a hybrid event held in Beijing on-site with online access and simultaneous interpretation available to remote participants. Domestic and international experts engaged in in-depth discussions and exchanges on transition risk opportunities and corresponding ESG investment opportunities related to China’s carbon neutrality target.
STOCK EXCHANGE NEWS
Panama Stock Exchange becomes Latin American Stock Exchange – Latinex01 July 2021
Panama Stock Exchange (Bolsa de Valores de Panama - BVP) announced that it has changed its name to Latin American Stock Exchange - Latinex (Bolsa Latinoamericana de Valores). Olga Cantillo, Latinex CEO said that the “relaunching” of the bourse is another step in the process of becoming a hub for the region’s capital markets.
LGX reaches 1,000 Sustainable Bonds milestone01 July 2021
Luxembourg Green Exchange (LGX), the world’s first and leading platform fully dedicated to sustainable securities, welcomed the 1,000th sustainable bond currently displayed on LGX; a USD1.5 billion Global Climate Awareness Bond issued by another pioneer in sustainable finance, the European Investment Bank.
BYMA integrated ESG from the start - Leading in an era of impact08 July 2021
The ESG movement has rapidly grown, from an increase in reporting to the expansion of sustainability-focused bonds. Nasdaq recognizes this era of impact, as forward-looking companies leverage ESG to unlock the opportunities of tomorrow. This is an interview with Julieta Artal, head of Corporate Governance and Sustainability at BYMA, about the exchange’s ESG initiatives and increased interest in ESG amid the pandemic.
SIX signed an MoU with Saudi Stock Exchange Tadawul for future cooperation13 July 2021
The Swiss and Saudi stock exchanges have signed a memorandum of understanding on future cooperation at a high-level meeting in Switzerland. The main topics addressed in the financial dialogue were the great potential of digitalisation for sustainable financial services, an improvement in reciprocal market access and sovereign debt management.
SGX first Asian exchange to commit to 1.5°C-aligned science-based emission reduction targets15 July 2021
Singapore Exchange (SGX) is committing to a 42% reduction in scope 2 emissions by FY2031 from the base as at FY2021 (July 2020 to June 2021), pledging to set science-based emissions reduction targets that are consistent with keeping global warming to 1.5°C above pre-industrial levels. For scope 3 emissions, SGX plans to engage their co-location data centre supplier to set science-based targets within five years.
LSE Green Economy Mark report 2021
15 July 2021
London Stock Exchange’s Green Economy Mark identifies listed companies and funds contributing to the global green economy by addressing key environmental objectives such as climate mitigation and adaptation, waste and pollution reduction, and transitioning to a circular economy.
KRX to launch three 'KRX Climate Change Indices'19 July 2021
The Korea Exchange (KRX) is planning to announce KRX climate change indices on July 19, 2021 as a part of the capital market's response to climate change. Three new indices are KOSPI 200 Climate Change Index, KRX 300 Climate Change Index and KRX Climate Change Solutions Index.
Bursa Malaysia: Financial institutions play significant role in transition towards green investment25 July 2021
As the global movement towards sustainability or ESG is gaining momentum, the role of financial institutions (FIs) is significant in the transition towards green investments. Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said the financial system is seen as a catalyst for change across the whole economy.
TSX launches new ETF Investor Centre to support growth27 July 2021
After a year that set many ETF records, the Toronto Stock Exchange (TSX) has launched its new TSX ETF Investor Centre to help investors and advisors learn more about ETFs, plus screen and compare funds.
SGX Orb Awards to showcase Asia’s progress on sustainability28 July 2021
Singapore Exchange (SGX) launched the fourth edition of its annual SGX Orb Awards to recognise excellence in financial journalism and content. Extending the theme of “Connecting Perspectives and Inspiring Conversations,” this year’s special category will spotlight initiatives that support a more sustainable future.
Bolsa Mexicana de Valores’ decade-long journey to build sustainable finance in Mexico
30 July 2021
Luis René Ramón, director of Financial Planning, Investor Relations and ESG Bolsa Mexicana de Valores, and Nalleli Barajas, deputy director of ESG at Bolsa Mexicana de Valores, to get their insights on the exchange’s ESG journey and their goals for the future.
REGULATOR AND STANDARD SETTER NEWS
Egyptian FRA further increases women representation on boards12 July 2021
The Board of Directors of the Egyptian Financial Regulatory Authority (FRA) issued new resolutions which include rules for listing securities by raising the percentage of female representation in the boards of directors of companies whose securities are listed on the Egyptian Stock Exchange.
Egyptian FRA: mandatory ESG and climate disclosure regulation15 July 2021
FRA issued resolutions requiring companies listed on the Egyptian Stock Exchange, and companies operating in non-bank financial activities to submit environmental, social, and governance disclosure reports related to sustainability (ESG standards).
WWF is joining forces with Aviva: Driving ambition in a crucial year for our climate18 July 2021
The finance sector has started to respond to the call to act on climate in the last few years, with significant progress on improving climate disclosures, and more financial institutions announcing net zero commitments and joining industry alliances to work on these voluntary commitments.
IMF urges countries to shift from economic rescue to reforms20 July 2021
The International Monetary Fund's No. 2 official called on countries to pivot from saving their economies from collapse to reviving growth-oriented policy reforms to boost their recovery prospects and make them more sustainable.
European Union: Sustainable finance regulation - next steps for investment funds21 July 2021
With the passing of the 10 March 2021 deadline for compliance with the Level 1 requirements under the EU Sustainable Finance Disclosure Regulation ("SFDR"), investment funds and fund management companies are now in the next phase of preparing for compliance with both the SFDR requirements and the EU Taxonomy Regulation by the next key date of 1 January 2022.
Japan FSA consults on draft guidelines for social bonds22 July 2021
The Japanese Financial Services Agency (FSA) is consulting on guidelines for the issuance of social bonds by the private sector. The FSA is aiming to produce a set of guidelines that are consistent with the internationally recognised International Capital Market Association (ICMA) Social Bond Principles and are also in line with the characteristics of Japan.
Central Bank of Egypt directs local market to abide by sustainable financing principles25 July 2021
The Central Bank of Egypt (CBE) has directed all banks operating in the local market to take the necessary measures to implement sustainable financing principles. The CBE issued several initiatives aimed at achieving sustainable development goals (SDGs), and promoting sustainable finance.
IOSCO consults on ESG Ratings and Data Providers26 July 2021
The Board of the International Organization of Securities Commissions (IOSCO) is soliciting feedback on a set of proposed recommendations regarding Environmental, Social and Governance (ESG) Ratings and Data Providers.
More U.S. companies tie CEO pay to diversity metrics27 July 2021
Corporate diversity has become the most common type of sustainability metric used in setting executive pay, a new study found, as companies look to increase the share of women and minorities in their workforces.
New Japanese policies create opportunities for ESG Bond Market27 July 2021
The Bank of Japan’s (BOJ) inaugural Strategy on Climate Change, released in July 2021, may increase the availability of capital for green projects both domestically and internationally, says Fitch Ratings.
US SEC: Gensler says climate risk rules will be proposed by year end28 July 2021
The US Securities and Exchange Commission (SEC) is planning to propose rules by the end of the year that will require corporations to publicly disclose the risks they face from climate change, the agency’s chair said.
Proposed EU standard seeks to bring clarity to green bond market29 July 2021
A proposed EU Green Bond Standard seeks to cement Europe's leadership in the green debt market by creating a go-to European standard, but it may find limited appeal among international issuers unable to comply with the bloc's strict new rules defining what is "green".
US SEC: ESG Investing Guidance29 July 2021
The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) as well as politicians and global organizations have stepped into the conversation to address the ESG investing surge and to provide much-needed guidance.
More than $3T of companies outside the EU could be on the hook for SFDR30 July 2021
This piece is produced by S&P Global Sustainable, S&P Global's single source of essential sustainability intelligence to navigate the transition to a low carbon, sustainable and equitable future.
ESG INDICES AND PRODUCTS
Nasdaq launches ESG Data Hub01 July 2021
As part of its goal to build more sustainable and inclusive markets, Nasdaq has launched a ESG Data Hub, connecting investors with sustainability data sets from leading providers across a wide range of categories within Environmental, Social and Governance (ESG), including biodiversity, gender diversity and carbon.
Euronext - Borsa Italiana - launches the MIB ESG Index13 July 2021
Borsa Italiana, part of the Euronext Group, will launch the first blue-chip index for Italy dedicated to Environmental, Social, and Governance (ESG) best practices in October 2021. The MIB ESG Index will be powered by Vigeo Eiris (V.E), part of Moody’s ESG Solutions.
ESG disclosure and performance in Southeast Asia13 July 2021
This article has a deeper look at the ESG disclosure and performance of major Southeast Asia countries, focusing on the ASEAN-6 countries (Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines).
Aviva Investors: ESG into your business model19 July 2021
Nathan Adams speaks about Aviva’s ESG approach, ambitions and its benefits, as well as sharing key learnings about how to strengthen both ESG and diversity and inclusion (D&I) in organisations.
SEC, PSE still talking on ESG index creation28 July 2021
The Securities and Exchange Commission (SEC) of the Philippines said it is still in discussions with the Philippine Stock Exchange for the creation of a sub-index called ESG index, which will carve out those companies that strictly follow certain guidelines on environmental, social and governance standards for the investors.
MANAGEMENT NEWS
Fitch appoints new global head of ESG research20 July 2021
Last week Fitch Ratings announced the appointment in London of Marina Petroleka as global head of ESG research, for its Sustainable Finance Group. Petroleka joined the group in 2020 and in her previous role, led the industry research team. Overseeing the global ESG research effort, she now reports into Andrew Steel, managing director and global group head of sustainable finance.
BBVA creates a new global area of Sustainability, led by Javier Rodríguez Soler29 July 2021
BBVA gives a new boost to its strategy, promoting sustainability to the highest level of the organization. Javier Rodríguez Soler, current country manager in the U.S., will head the new area, which aims to make BBVA the leading bank for clients in sustainability solutions.
