This month includes news from Cboe, HKEX, ICE, LuxSE, SGX 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 speaks at launch of new Carbon Tracker report on unburnable carbon07 July 2022
The UN SSE was invited to participate in a panel discussing Carbon Tracker’s updated report “Unburnable Carbon: are the World’s Financial Markets Carrying a Carbon Bubble?” This new report finds that over $600 billion of oil and gas assets owned by listed companies are at risk of never being removed from the ground. The UN SSE provided insight on how stock exchanges can help financial markets prepare for this risk and provided insight into the key activities exchanges are already undertaking.
The Mongolian Agricultural Commodity Exchange Joins the UN SSE Derivatives Network12 July 2022
The UN Sustainable Stock Exchanges (SSE) initiative welcomes the Mongolian Agricultural Commodity Exchange (MCE) as a new member of the SSE derivatives network. The MCE has joined the SSE derivatives exchanges network to solidify its commitment to the transparency and sustainability of financial markets. The SSE’s newest member joins a network of 14 derivative exchanges around the world that are committed to promoting sustainable development.
SSE Contributes to Caribbean Environmental, Social and Governance Workshop20 July 2022
The UN SSE initiative delivered a brief lecture on the importance of climate change in the ESG agenda as part of a two-day environmental, social and governance (ESG) workshop hosted by the Jamaica Stock Exchange. The workshop titled “ESG the new Buzz word” brought together relevant stakeholders on ESG issues and discussed their importance for financial institutions and investors in the Caribbean.
New SSE TV New Episodes Released!
The SSE TV has released new episodes featuring Alex Matturri (Board Member of Cboe), Walt Lukken (CEO & President of FIA Global), Carole Laible (CEO of Domini Impact Investments), Samuel Ho Hock Guan (CEO of Bursa Malaysia Derivatives Berhad), Luc Fortin (CEO & President, Montreal Exchange & Global Head of Trading at TMX Group).
SSE upcoming events:UN SSE, CDP & IFC to Provide Free Climate Disclosure Training to Exchanges and their Issuers
In order to provide markets with high-quality training on climate disclosure and provide an overview of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, the UN SSE together with IFC and CDP, have created a multifaceted CPD accredited course for exchanges to distribute to their markets, free of charge. These sessions have been delivered in more than 20 markets so far, from New York to Bangladesh and London to South Africa. For more information on past and future training sessions, visit the SSE Academy event page. Contact: [email protected] if you would like to host a training session in your market. This is a NO COST service available for all SSE Partner Exchanges.
EXCHANGE NEWS
Cboe launches its Fourth Annual ESG Report 202201 July 2022
Cboe Global Markets launched its fourth annual Environmental, Social and Governance (ESG) report which highlights Cboe's ESG efforts and accomplishments. Cboe is committing to reaching net zero emissions across their operations and material scope 3 emissions by 2050.
Climate Impact X is Leveraging Nasdaq Technology to Innovate the Voluntary Carbon Market01 July 2022
For the voluntary carbon market to reach its potential, traders need reliable, standardized, transparent marketplaces. One of the most highly anticipated trading venues is slated to launch in 2023 by Climate Impact X (CIX), a global marketplace and exchange for quality carbon credits. Powered by Nasdaq’s robust matching technology, CIX’s new spot trading platform will enable resilient and dynamically scalable trading in a cloud-based Software-as-a-Service (SaaS) environment, ultimately unlocking price transparency and reducing transaction costs.
HKEX Launches Hong Kong International Carbon Market Council, Unveils Carbon Market Plans05 July 2022
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the launch of the Hong Kong International Carbon Market Council (the Council). HKEX is partnering with a number of leading corporates and financial institutions as inaugural Council members to explore carbon opportunities in the region.
FTSE Russell: Sustainable Investments Insights - Quarterly Report
11 July 2022
Essential reading for institutional investors interested in sustainable investment, this quarterly report, authored by our Global Investment Research team, views investment outcomes through the lens of FTSE Russell’s sustainable investment index strategies.
FTSE Russell: Dealing with Income Bias In Sovereign ESG Scores12 July 2022
Billions of dollars are flowing into ESG-tilted sovereign debt as asset owners try to mitigate their exposure to climate risks. “Dealing with income bias in sovereign ESG scores” proposes an ex-post way to deal with income bias in Sovereign ESG. Using a simple statistical framework and proprietary Sovereign Risk Monitor (SRM) methodology, estimating a log-linear relationship between the income level of economies and their respective E, S and G performance assessment.
SGX first Asian exchange to commit to 1.5°C-Aligned Science-Based Emission Reduction Targets15 July 2022
Singapore Exchange (SGX) is committing to a 42% reduction in Scope 2 emissions by 2031 from the base as at 2021, pledging to set science-based emissions reduction targets that are consistent with keeping global warming to 1.5°C above pre-industrial levels. SGX is setting ambitious emission reduction targets which contribute to global efforts to reach net-zero emissions by 2050.
ICE Launches the ESG Geo-Analyzer for Property-Level Climate Risk and Demographic Data19 July 2022
Intercontinental Exchange (ICE) has announced the launch of the ICE ESG Geo-Analyzer, which leverages ICE’s geospatial data modelling to provide climate risk and social impact data and analytics for properties and communities throughout the United States. It can be used to analyze commercial and residential properties, whole loan portfolios and real estate holdings, and the asset-backed securities or business and corporate operations tied to those locations.
ICE Extends Climate Risk Management Offering With Acquisition of Urgentem21 July 2022
Intercontinental Exchange (ICE) announced it has expanded its climate risk offering with the acquisition of Urgentem, a provider of global corporate emissions and climate transition data. Urgentem’s data and analytics will enable ICE to quickly expand its climate risk offering to include extended coverage of global public and private companies across new geographies, scenario risk analysis and stress testing for fund managers and banks.
Boursa Kuwait won the Most Sustainable Company in the Financial Services industry by World Finance24 July 2022
Boursa Kuwait has been awarded the title of “Most Sustainable Company in the Financial Services Industry" by World Finance magazine, which recognized the national stock exchange operator’s efforts to raise awareness and foster the adoption of sustainable business practices, internally and throughout the wider capital market.
LSEG: Collective Responsibility for Climate Action24 July 2022
The LSEG’s Group Head of Sustainability Jane Goodland speaks to Hywel Ball, EY’s UK Chair and UK&I Managing Partner, to discuss the roadmap towards net zero and the collective responsibility that we all have to play in climate action.
Saudi Exchange and AIX have signed MOU to advance in ESG26 July 2022
The Saudi Exchange and Astana International Exchange (AIX) have signed a Memorandum of Understanding under which the two sides will facilitate the exchange of data and research in the field of FinTech, explore opportunities for cooperation in the development of the areas of sustainable development and environmental, social and corporate governance (ESG). The two platforms also intend to exchange ideas on stock exchange products, education, IR and other issues.
Nasdaq Receives ‘AA’ ESG Rating from MSCI26 July 2022
Nasdaq received a significant upgrade in its latest ESG Ratings score published in the 2022 MSCI ESG Ratings, jumping from BBB to AA. This places the company in the annual ratings’ “Leaders” category alongside peer organizations that show strong management of their most significant ESG risks and opportunities.
BSE (Bulgaria) announced it has adopted Refinitiv’s ESG metrics to Power its Sustainability Index02 August 2022
The Bulgarian Stock Exchange (BSE) announced it has adopted Refinitiv’s Environment, Social and Governance (ESG) metrics to power its sustainability index set to be launched at the end of 2022.
REGULATOR AND STANDARD SETTER NEWS
ECB announces Major Green Shift in Corporate Bond-Buying04 July 2022
The European Central Bank (ECB) will reinvest matured bonds towards more sustainable firms. In making these investment decisions, the ECB will look at past performance, planned carbon-reduction goals and publicly-disclosed climate data.
Securities Commission of Malaysia: 10th Annual Malaysia Roundtable Sustainability Investing
28 July 2022
Malaysia’s securities regulators said the local asset and fund management industry “must ride on the wave” of the sustainable investing trend and launch a wider range of products, including environmental, social and governance funds.
UK’s FCA: Review of TCFD-Aligned Disclosures by Premium Listed Commercial Companies29 July 2022
The United Kingdom’s Financial Conduct Authority (FCA) outlines its preliminary observations following an assessment of the first climate-related disclosures made in line with their rule and reiterate their expectations for better practice examples highlighted in the Financial Reporting Council’s complementary review to help companies improve their disclosures.
IFRS Foundation completes consolidation with Value Reporting Foundation01 August 2022
The IFRS Foundation has announced the completion of the consolidation of the Value Reporting Foundation (VRF) into the IFRS Foundation. It follows the commitment made at COP26 to consolidate staff and resources of leading global sustainability disclosure initiatives to support the IFRS Foundation’s new International Sustainability Standards Board’s (ISSB) work to develop a comprehensive global baseline of sustainability disclosures for the capital markets.
Carbon Tracker: Letter to ISSB on Sustainability and Climate-related Disclosures02 August 2022
Together, Carbon Tracker and Planet Tracker, have provided comments to the International Sustainability Standards Board (ISSB) on its Exposure Drafts ED 2022/S1 IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and ED 2022/S2 IFRS S2 Climate-related Disclosures.
ESG INDICES AND PRODUCTS
SZSE Approves The First CSI SEEE Carbon Neutral ETFs
01 July 2022
CSI SEEE carbon neutral ETFs, the issuance and listing of relevant products will soon be launched on Shenzhen Stock Exchange (SZSE), to promote the attainment of the goal of carbon peaking and carbon neutrality. It will further diversify the “dual carbon” fund sector of SZSE and channel market funds into the low-carbon and sustainable development fields..
National Australia Bank achieves Another Green Bond First
04 July 2022
The National Australia Bank (NAB) has announced the green bond issued by NBN Co which will be the first of its kind for an Australian telco sector or Government Business Enterprise. The finance will be used by NBN Co for eligible green projects such as those to reduce its annual energy usage, move to electric or hybrid vehicles and to purchase 100 per cent renewable electricity.
ASEAN governments Rush to Issue Green Bonds04 July 2022
Southeast Asian nations are aiming to increase green financing as the region, dotted with flood-prone low-lying areas vulnerable to weather disruptions and rising sea levels, grapples with the threat of climate change.
JPX and JPXI Launch ESG Bond Information Platform
19 July 2022
The Sustainable Finance Platform Development Working Group, set up by JPX discussed practical issues around the creation of an information platform for ESG bonds. With green investment growing fast during the net zero transition, the Working Group pointed out the importance of enabling access to information which is useful for the operations of both issuing organizations and investors.
GENDER EQUALITY
Nasdaq: Boards Need More Women: Here’s How to Get There14 July 2022
In a recent interview for Nasdaq, Maria Moats, PwC Governance Insights Center leader, and Shannon Schuyler, PwC Chief Purpose and Inclusion Officer discuss the critical role boards diversity play in bringing an organization’s strategic vision to life.
BlackRock launches Model Portfolios To Improve Women's Investment Outcomes25 July 2022
BlackRock has announced its first Model Portfolios for Women, utilizing the company's exclusive LifePath lifecycle investing framework and modifying conventional investment considerations. BlackRock has discovered that, on average, women may under-allocate to stocks at crucial points during their lengthy investment horizon.
IFC: Women and Online Learning in Emerging Markets28 July 2022
IFC's new report, Women and Online Learning in Emerging Markets, developed in partnership with Coursera, and the European Commission, shows how online platforms can support women in accessing job relevant courses and credentials to advance their employment and entrepreneurship opportunities.
A New Era of Female Leadership in Saudi business29 July 2022
The Saudi Exchange actively encourages listed companies to empower female employees and increase their representation across all levels.
Reducing The Gender Gap In The World Economy By Julie Becker, CEO of LuxSE30 July 2022
In a recent interview, Julie Becker, CEO of the Luxembourg Stock Exchange (LuxSE) talked about the critical role that the exchange is playing to advance gender finance and strengthen awareness of the role that finance plays in achieving a more gender-equal world.
