This month includes news from BME, JSE, LSEG, NSE, SET 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

SSE launches Climate Disclosure work with Mark Carney and LSEG 15 July 2020 SSE initiative is launching a new workstream to support exchanges in providing guidance to issuers on climate disclosure. The SSE’s Partner Exchanges and key stakeholders are invited to participate in the SSE’s Advisory Group on Climate Disclosure. Derivatives Exchanges Advisory Group meets 20 July 2020 SSE initiative hosted a webinar meeting of the SSE Derivatives Exchanges Advisory Group to discuss the role of derivatives exchanges in promoting sustainable development. The SSE held two webinars to accommodate the many time zones of all members of the Advisory Group. In total there were 42 participants joining from 19 countries around the world, including representatives of 21 derivatives exchanges. Webinar: Green, Social and Sustainable Bonds in Brazil: State of Play and How to Issue 29 July 2020 In partnership with the Inter-American Development Bank (IDB), Financial Innovation Laboratory (LAB), Securities and Exchange Commission (CVM) and B3, SSE discussed green, social and sustainable bonds: current situation and how to issue. SSE presented the state of play including the emergence of COVID-19 bonds.  

STOCK EXCHANGE NEWS

London Stock Exchange establishes the Sustainable Bond Market Advisory Group 03 August 2020 London Stock Exchange announces the establishment of the Sustainable Bond Market Advisory Group (SBMAG). SBMAG will act as a forum for market participants to provide input on the Exchange’s Sustainable Bond Market, and act as a consultative body on future developments. Nairobi Securities Exchange Co-organizes a Webinar on Sustainable Investing Trends in African Stock Exchanges 10 August 2020 This webinar features experts to discuss these tasks by reviewing the broad trends in investment and savings in Africa and provide deep insights to sustainable investing in Africa Stock Exchanges SET Promotes Thai-Listed Firms’ ESG Information 03 July 2020 The Stock Exchange of Thailand (SET) promotes “ESG information” of Thai listed companies, featuring sustainability assessment results and a list of sustainable stocks, published on settrade.com. QSE developing sustainability, ESG benchmark for listed companies 29 July 2020 The Qatar Stock Exchange (QSE) is developing a sustainability benchmark index for the listed companies as the country has promising potential to be a niche ESG (environment social governance) market in the region. All JSE employees to get four months of paid parental leave 27 July 2020 The JSE has introduced a gender-neutral parental leave policy for all employees. Employees now qualify for four months of paid parental leave, regardless of their gender or gender identity in accordance with the new policy BME Admits BBVA’s 1-Billion Euro Green CoCo Bond To Trading 20 July 2020 BME has admitted a 1-billion euro green Contingent Convertible bond (CoCo) from BBVA to trading. This is the first bond of its kind ever issued by a financial institution worldwide. Nigerian Stock Exchange Masks For All Nigerians Campaign Receives Boost From Private Sector 06 July 2020 The Nigerian Stock Exchange (NSE or The Exchange) redeemed its pledge of Sixty Million Naira to the Capital Market Support Committee for COVID-19 (CMSCC) with the donation of ambulance and Twenty Million, Seven Hundred Thousand Naira cash to the committee.  

REGULATOR NEWS

ESMA Responds To European Commission Consultation On Renewed Sustainable Finance Strategy 16 July 2020 In ESMA’s view, the future strategy on sustainable finance should aim to set up a robust and proportionate European regulatory framework that adequately supports the shift towards a more sustainable financial system.  

ESG INDICES AND PRODUCTS

BNP Paribas Issues Australia's First Climate-Linked Bond 02 August 2020 BNP Paribas issued Australia's first green bond linked to the performance of an index tracking companies tipped to benefit from the country's transition into a low-carbon economy, aiming to bridge a gap in sustainable investment products. ESG Assets Keep Growing During Covid-19 Crisis 30 July 2020 During the second quarter, sustainable fund flows in the U.S. continued at a record pace of $10.4 billion, bringing net inflows for the first half to $20.9 billion, compared with the $21.4 billion of net inflows for all of 2019, according to Morningstar. Namibia: Green bond raises $4 million for clean energy 31 July 2020 The first green bond listed on the Namibian Stock Exchange (NSX) has raised more than US$4 million (N$66 million) to finance renewable energy projects in the country. Social Debt Surges to Record as Borrowers Tackle Coronavirus 29 July 2020 Sales of debt for projects aimed at helping society surged to a record in the first half of the year as governments, supranational entities and companies boosted borrowing to get through the pandemic. World Bank Launches New Fiscal Year Funding Program with USD 5 Billion Sustainable Development Bond 21 July 2020 The 5-year benchmark pays a semi-annual coupon of 0.375% per annum and has an issue price of 99.866% and a final spread of 13.85bps over the 0.25% US Treasury due June 2025 reference bond, offering investors a yield of 0.402%. CDSB Framework application guidance for climate-related disclosures July 2020 This guidance offers companies a means of developing their reporting practices and ensuring that investors are receiving the material climate-related information needed for efficient and effective capital allocation to drive the transition to a just, low-carbon economy. ESG Trends Persist Despite Pandemic 23 July 2020 Many of the structural trends driving the relevance of ESG to credit ratings remain intact, and in some cases are even accelerating, despite the pandemic, Fitch Ratings says in its "ESG Credit Quarterly: 2Q20" report. Morgan Stanley to Show How Loans Contribute to Climate Change 20 July 2020 Morgan Stanley will begin reporting the carbon emissions resulting from its lending and investments, providing greater clarity than any of its major American peers on how the bank contributes to climate change. IFC Launches USD Global Bond, Raising $2 Billion to Support Private Sector in Developing Countries Amid COVID-19 Health and Economic Crisis 09 July 2020 The five-year benchmark bond was heavily oversubscribed with an order book of over $6 billion – making it IFC’s largest-ever orderbook. CDP launches climate 'temperature rating' system for investors 07 July 2020 Global environmental non-profit group CDP said on Tuesday it had created a temperature ratings system that will allow investors to track carbon emissions from across the value chain of more than 4,000 companies.  

RESEARCH

World Economic Forum: New Nature Economy Report Series A series of reports showing the relevance of nature loss to boardroom discussions on risks, opportunities and financing. These insights provide pathways for business to be part of the transition to a nature-positive economy. World Economic Forum: How a different kind of investment could transform Latin America 25 July 2020 The pandemic is ravaging Latin America, but it also offers an opportunity to transform the region for the better. The financial system can play a significant role in building a sustainable recovery through the use of ESG investments. This approach could help to rectify many problems, such as the region's reliance on fossil fuels. International Swaps and Derivatives Association (ISDA) and European Capital Markets Institute (ECMI): Derivatives In Sustainable Finance: Enabling The Green Transition 17 July 2020 This report, which was published in cooperation with ISDA, highlights how derivatives markets can contribute by: Enabling the EU to raise and channel the necessary capital towards sustainable investments; Helping firms hedge risks related to environment, social and governance factors; Facilitating transparency, price discovery and market efficiency; and Contributing to long-termism. World Federation of Exchanges: Sixth Annual Sustainability Survey 15 July 2020 The WFE sustainability survey captures the nature and extent of member engagement with Environment, Social and Governance (ESG) issues in both developed and emerging markets. By carrying out this survey on an annual basis, the WFE and the industry are also able to track the evolution of members’ engagement with ESG issues. Statement of the EU Technical Expert Group on Sustainable Finance (TEG): 5 high-level principles for Recovery & Resilience 15 July 2020 Climate change and biodiversity loss are key drivers of environmental stress. Given the increasing pressure on our environment triggered by climate change and biodiversity loss, experts are warning that we should expect more pandemics. This pandemic is the first of what is likely to be a century of shocks related to environmental degradation. GRI and SASB: Promoting Clarity and Compatibility in the Sustainability Landscape 12 July 2020 Amid rising global demand for clarity in the sustainability reporting ecosystem, the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI) are pleased to announce a collaborative work plan. Initially the collaboration will focus on delivering communication materials to help stakeholders better understand how the standards may be used concurrently. The World Bank: How to Develop a National Green Taxonomy for Emerging Markets - A New World Bank Guide 12 July 2020 The World Bank published a guide outlining the processes that financial regulators can use to develop a green taxonomy. The publication Developing a National Green Taxonomy: A World Bank Guide will help regulators in emerging economies who seek to “green” their countries’ financial systems. Principles for Responsible Investment - PRI: Sustainable and inclusive: Covid-19 recovery and reform 06 July 2020 As communities and businesses around the world grapple with the ramifications of the COVID-19 pandemic, we owe it to our clients and beneficiaries to recover better, which means creating a recovery that is sustainable, inclusive and delivers concrete reforms. For responsible investors, that means they need to raise their games on policy engagement.  

MANAGEMENT NEWS

LuxSE appoints Laetitia Hamon as Head of Sustainable Finance 15 July 2020 The Luxembourg Stock Exchange (LuxSE) announced the appointment of Laetitia Hamon as the company’s Head of Sustainable Finance. As of 15 July, the sustainability expert will take the reins of LuxSE’s sustainable finance team and the company’s renowned platform for sustainable securities, the Luxembourg Green Exchange (LGX).