June monthly news highlights

26 June 2019

This month includes news from IOSCO, ESMA, BSE, JPX, NYSE, Santiago Exchange, CBOE, SZSE, EGX, LSEG, LuxSE, SET, Deutsche Börse, NSE, Nasdaq, BVP, Bursa Malaysia, HKEX 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

Botswana Stock Exchange hosts responsible investing and ESG workshop 24 June 2019 The Botswana Stock Exchange (BSE) in collaboration with the UN SSE initiative held a workshop on responsible investing and ESG attended by issuers, potential issuers and investors. The workshop featured speakers from the BSE, the United Nations Sustainable Stock Exchanges (SSE) initiative, the Ministry of Finance and Economic Development (MFED), the UN-supported Principles for Responsible Investment (PRI), Kgori Capital, Leru Property Group, and Norsad Finance. IOSCO holds first Sustainable Finance Network Stakeholder meeting 19 June 2019 The International Organization of Securities Commissions (IOSCO) held its first Sustainable Finance Network Stakeholder Meeting in Stockholm as an interchange between securities regulators, standard-setting bodies and the market on sustainable finance. Four panel discussions looked to evaluate the impact on corporate business mdoels and risk management of developing sustainable businesses, the impact of sustainability factors in the investment decision process, corporate reporting for sustainability and the role of security regulators in each of these topics. JPX publishes Japanese Translation of SSE Model Guidance for ESG reporting 3 June 2019 The Japan Exchange Group published a Japanese translation of the SSE Model Guidance on Reporting ESG Information to Investors and encouraged listed companies to make use of this resource. The Japan Exchange Group is a member of the SSE initiative since 2017, and the Japan Corporate Governance Code stipulates that listed companies should consider taking positive and proactive measures to address sustainability issues. EVENT: UN SSE initiative 10 Year Anniversary Celebration 26 September 2019 In 10 years, the SSE has grown to 90 exchanges, listing 51,000 companies valued at 86 trillion USD, and it is still growing. This illustrates that participating in a conversation on environmental, social and governance factors has become a necessary part of the investor-exchange-issuer dialogue. To mark the 10 year anniversary since the SSE was initiated in 2009 by the United Nations Secretary General in New York, partners are invited to join in commemorating the progress of sustainable stock exchanges and charting a path for the next 10 years.This is an invitation only event. For more information, please contact the SSE team.

SSE EXCHANGE IN FOCUS ARTICLES

NYSE advancing board diversity 26 June 2019 The New York Stock Exchange (NYSE), a founding SSE Partner Exchange, announced the launch of the NYSE Board Advisory Council, which will proactively address the critical need for inclusive leadership by connecting diverse candidates with companies seeking new directors. First “Ring the Bell for Responsible Investment” at Santiago Exchange, announces new branding 21 June 2019 The Santiago Exchange and Principles for Responsible Investment (PRI) celebrated the first Ring the Bell for Responsible Investment, getting together local institutional investors to promote and encourage responsible investment at the Chilean Capital Markets. The Santiago Exchange also announced in June a new brand that reinforces its corporate business value, as a technological, innovative, transparent, reliable and sustainable company.  

WEBINARS AND EVENTS

CBOE 2019 Risk Management Conference Europe 9-11 September 2019 | Munich, Germany CBOE Global Markets will host its 8th annual Cboe® Risk Management Conference (RMC) Europe from Monday, 9 September through Wednesday, 11 September, 2019, at the Andaz Hotel in Munich, Germany.  

CONSULTATIONS

ESMA Consults on short-termism in financial markets Due: 29 July 2019 The European Securities and Markets Authority (ESMA) has today published a questionnaire, which aims to gather evidence on potential short-term pressures on corporations stemming from the financial sector.  

STOCK EXCHANGE NEWS

SZSE organizes 16th China International SME Fair 28 June 2019 The Shenzhen Stock Exchange (SZSE) together with the China Electronic Information Industry Development Research Institute (CCID) of the Ministry of Industry and Information Technology (MIIT) jointly organized the “16th China International SME Fair SME Investment and Financing Forum & Investment Roadshow” which is themed “capital market facilitating innovative development of small and medium-sized enterprises (SMEs).” LSEG launch report highlighting continued importance of SMEs 26 June 2019 London Stock Exchange Group launched the sixth annual edition of its ‘1000 Companies to Inspire Britain’. The report identifies the UK’s most dynamic and fastest growing Small and Medium Sized Enterprises (SMEs). EGX and LSEG discuss developing capabilities of SMEs and means of financing for growth 25 June 2019 The Egyptian Exchange (EGX) in collaboration with the London Stock Exchange Group (LSEG) held a SMEs roundtable discussion on funding and technical support for their expansion. The roundtable was attended by representatives of international financial institutions, namely; International Finance Corporation (IFC), European Bank for Reconstruction and Development, CDC Group, as well as representatives of Egyptian SMEs from different sectors looking for funding for future expansions. Luxembourg Exchange speaks at Sustainability Reporting Forum 19 June 2019 CEO of the Luxembourg Stock Exchange, Robert Scharfe, participated on a panel evaluating what sustainability information stakeholders need. “Sustainability is about survival. Companies that ignore sustainability, will have a problem in the future,” Mr. Scharfe said. Watch the panel discussion here. SET joins forces to organize SET Social Impact Day 2019 18 June 2019 The Stock Exchange of Thailand (SET) together with alliances in capital market, social, and entertainment sectors, have organized the annual SET Social Impact Day, under the theme “Partnership for Impact Co-creation” on July 17-18, as a flagship venue to bridge business sector and social enterprises (SEs) to tackle critical social issues including education, healthcare, environment, underprivileged groups, community and agricultural development. The event offers seminars, networking session and business matching as well as showcasing social innovations and opening up a marketplace by 60 SEs. FMDQ, UNEP, champion Lagos Financial Centre for Sustainability 18 June 2019 With the global momentum towards building sustainable financial systems, the increasing significance of environmental, social and governance (ESG) factors on financial sector development and the growth in green and sustainable finance initiatives world over, the City of Lagos joined 23 other international financial centres, including London, New York, Paris, Geneva, Hong Kong, Shanghai, Seoul, to mention a few, as a member of the International Network of Financial Centres for Sustainability (“FC4S Network”), a United Nations (UN) Environment Programme-convened international network that seeks to shift private capital to climate friendly and green investments. Stock exchange sustainability trends highlighted in UNCTAD World Investment Report 2019 12 June 2019 The World Investment Report provides analysis on the latest global and regional trends in and prospects for foreign direct investment, global value chains and the operations of multinational enterprises, with special attention to their development implications. Chapter III.C gives an updated overview of capital markets and sustainability including the sustainability trends of stock exchanges and regulatory authorities. SET and Microsoft start Thailand’s first startup info center 12 June 2019 The Stock Exchange of Thailand (SET) has joined forces with Microsoft (Thailand) to scale up LiVE platform to ”Virtual Pitching Platform”, an integrated entrepreneur information center for small and medium-sized enterprises (SMEs),  startups, and social enterprises (SEs) to pitch their business plan online to investors, enabling Thai entrepreneurs to grow globally. LiVE platform, which comes on stream today, also connects to other alliances to strengthen and connect the startup ecosystem. Deutsche Börse Group’s head of sustainability management spoke about the increasing involvement of shareholders 6 June 2019 Kristina Jeromin, leading voice in promoting the sustainable transition of investments in Germany, highlighted how shareholders are becoming increasingly aware of sustainability issues. The manager also made clear that essential ESG data also needs to be made more available and shareholders should be reviewing data in a standardized manner. Nigerian Stock Exchange discusses corporate sustainability and responsibility June 2019 In the June edition of the World Federation of Exchange’s “Focus”, Olumide Orojimi, head of corporate communications at The Nigerian Stock Exchange (NSE) discusses the exchanges approach to creating sustainable value, leveraging its unique position at the center of Africa’s largest economy. “The United Nations estimates that developing countries are faced with a funding gap of $2.5 trillion per year to achieve the sustainable development goals (SDGs). Our approach to CSR underpins the importance of promoting sustainable business practices in our markets as a factor in positioning the private sector as actors in achieving the SDGs,” Mr. Orojimi said. The Nigerian exchange also spoke with CNBC Africa in June on how it is improving sustainability, watch the interview here.  

REGULATOR NEWS

EU Commission publishes guidelines to improve climate-related information reporting and welcomes three new reports on climate finance 18 June 2019 The non-financial reporting Directive (2014/95/EU) requires large public interest entities with over 500 employees (listed companies, banks, and insurance companies) to disclose certain non-financial information. The Commission has published non-binding guidelines to help companies disclose relevant non-financial information in a more consistent and more comparable manner. IOSCO launches “Sustainable finance in emerging markets and the role of securities regulators” report 5 June 2019 IOSCO's Growth and Emerging Market Committee (GEMC) published a report that sets forth recommendations related to the development of sustainable finance in emerging markets and the role of securities regulators in this area. It contains 10 recommendations for emerging market member jurisdictions to consider when issuing regulations or guidance regarding sustainable financial instruments. TCFD publishes second Status Report to the Financial Stability Board 5 June 2019 The report focuses on the continued progress of companies in disclosing information on climate-related risks and opportunities since the release of the final recommendations issued in June 2017. UK Treasury Committee launches inquiry into decarbonization and green finance 5 June 2019 On World Environment Day, June 5, 2019, the UK Treasury Committee (the Committee) launched an inquiry into the decarbonization of the UK economy and green finance. The inquiry will scrutinize the role of HM Treasury (HMT), regulators, and financial services firms in supporting the UK government’s climate change commitments, and examine the potential for decarbonizing the UK economy.  

ESG INDICES AND PRODUCTS

LGX displays 174 World Bank Sustainable Development Bonds 26 June 2019 While finance professionals gathered in the Luxembourg Philharmonie to promote sustainable finance, the Luxembourg Green Exchange (LGX) marked a historic display of sustainable development bonds issued by the World Bank. LGX − a platform dedicated exclusively to green, social and sustainable financial instruments – now displays 174 World Bank sustainable development bonds, representing a total amount of more than €40 billion. This step brings the number of green and sustainable development bonds issued by the World Bank (International Bank for Reconstruction and Development, IBRD) and displayed on LGX beyond the 200 mark. Nasdaq: Vattenfall lists first green bond under new Swedish EMTN Program 26 June 2019 Vattenfall, a leading European energy company, today announced the listing of the first green bond listed at Nasdaq (Nasdaq: NDAQ) Stockholm under its new recent EUR 10 billion Swedish law governed euro medium term note (“EMTN”) program. Stock Exchange of Panama joins global program of green bonds 24 June 2019 The Panama Stock Exchange (BVP) has joined the Climate Bonds Partner Program, an initiative that is responsible for boosting green bonds globally and mobilizing the bond market for climate change solutions. Vienna Stock Exchange: new composition of the VÖNIX Sustainability Index 24 June 2019 The VÖNIX includes those companies listed on the Vienna Stock Exchange that are leaders in ecological and social activities and services. MSCI expands climate solutions with climate change indexes launch 21 June 2019 The climate indexes enable investors to navigate and measure investment opportunities as well as the risk that comes with them as we transition to a low carbon economy. FTSE4GOOD Bursa Malaysia Semi-Annual Review 14 June 2019 Bursa Malysia announced 16 new additions to the constituents of the FTSE4GOOD Bursa Malaysia index, which measures the performance of companies demonstrating strong environmental, social and governance (ESG) practices. FMDQ, FSD Africa & CBI host media engagement workshop on green bonds 10 June 2019 FMDQ OTC Securities Exchange, Financial Sector Deepening (FSD) Africa, and Climate Bonds Initiatives (CBI) collaboratively launched the Nigerian Green Bond Market Development Programme,, with key objectives including, but not limited to, the development of green bonds as an investible capital markets instrument, development of local verifiers and support for demonstration issuances, etc. A key takeaway from the Programme Launch in June was the call for capacity development/training across the entire financial markets’ ecosystem. Fidelity Launches First ESG ETF on NEO 6 June 2019 The new fund leverages a quantitative multi-factor model and seeks to identify and invest in global companies that are believed to have favorable environmental, social and governance. It is the first NEO-listed ETF from Fidelity and Fidelity’s first ETF to exclusively employ ESG strategies. London Stock Exchange strikes deal to expand ESG index business 3 June 2019 The London Stock Exchange Group (LSEG) announced its acquisition of Paris-based Beyond Ratings, that rates businesses on their environmental, social and governance credentials. LSEG’s Information Services business is responding to the rapidly growing demand among asset owners to integrate sustainability and ESG considerations, based on innovative research, into their equity and fixed income investment strategies, LSEG said.  

MANAGEMENT NEWS

HKEX welcomes government reappointments to HKEX Risk Management Committee 25 June 2019 Hong Kong Exchanges and Clearing Limited (HKEX) welcomes the Government’s reappointment of Lawrence Lam and Barbara Shiu to its Risk Management Committee (Statutory) (RMC). GRI renews its governance until June 30th and July 12th 18 June 2018 The nomination period for the Global Sustainability Standards Board and Due Process Oversight Committee will close on 30 June, while nominations for the Board of Directors, Stakeholder Council and Independent Appointments Committee is open until 12 July. UK’s Financial Conduct Authority appoints new Chair at the Financial Ombudsman Service 5 June 2019 Baroness Zahida Manzoor CBE has been appointed Chair of the Financial Ombudsman Service. The appointment was made by the FCA Board with the approval of HM Treasury. Baroness Manzoor will take up the role on 2 August 2019. Intercontinental Exchange appoints Chief Operating Officer and Chief Commercial Officer of NYSE Group 3 June 2019 Intercontinental Exchange (ICE) announced that John Tuttle has been appointed Vice Chairman and Chief Commercial Officer of NYSE Group. Michael Blaugrund, currently Head of Transactions at the NYSE, has been promoted to Chief Operating Officer, overseeing strategy and operations of NYSE Group’s five equities exchanges and two options exchanges.

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.