June monthly news highlights

26 June 2017

This month includes news from ASX, Chittagong Exchange, LuxSE, Nasdaq, Shanghai Exchange 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

SSE supports FSB Task Force call June 30, 2017 With the release of the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD) recommendations, the SSE Model Guidance on Reporting ESG Information has been updated, encouraging exchanges to support its implementation and include it as a resource to educate issuers. To further support the work of the Task Force, exchanges can reference its recommendations in their own reporting guides, provide training, and directly engage issuers, investors and securities regulators. ASX joins the SSE June 26, 2017 Australia’s largest stock exchange, the Australian Securities Exchange (ASX), has signed a voluntary commitment to promote long-term sustainable investment and improved environmental, social and corporate governance disclosure and performance among its issuers. ASX joins 60+ other stock exchanges worldwide committed to this objective as Partner Exchanges of the United Nations Sustainable Stock Exchanges (SSE) initiative. SSE presents on disclosure and SDGs June 20-21, 2017 The Sustainable Stock Exchanges (SSE) initiative was asked to present on a panel organized by the International Finance Corporation (IFC) on the key developments and trends in environmental, social, and governance (ESG) reporting frameworks, guidelines, and standards and their alignment with the Sustainable Development Goals (SDGs). The panel discussion was part of a two-day meeting held by the IFC to deliberate key developments in ESG integration in emerging markets, governance of environment and social issues, and transparency and disclosure for the development of a new toolkit on transparency and disclosure for sustainability in emerging markets. Chittagong exchange joins the SSE June 5, 2017 Chittagong Stock Exchange Limited (CSE) held a press conference to announce its commitment to sustainable and transparent capital markets as the first Bangladeshi Stock Exchange to join the Sustainable Stock Exchanges (SSE) initiative. “As a Partner Exchange, the CSE will join forces with international efforts to spearhead sustainability practices among capital markets. CSE intends to make use of the SSE platform to improve transparency and further enable ethical and sustainable interactions in its marketplace,” the exchange said in a statement.

WEBINARS AND EVENTS

ESG Integration Summit: Framework for creating a diverse and dynamic marketplace August 29, 2017 – Stockholm, Sweden Engage with institutional investors, public company executives, and board directors on how to integrate the Nasdaq ESG guidance and framework for disclosure of company practice. United Nations SSE Technical Workshop September 27, 2017 – Berlin, Germany This SSE roundtable event will bring together exchanges, investors, regulators and companies from around the world to discussion on closing the ESG data gap and financing the Sustainable Development Goals. This event takes place alongside PRI in Person in Berlin, Germany on 27 September. Following the success of the technical workshop in Singapore in 2016, this roundtable event takes the form of a candid, solutions-oriented conversation between technical experts that work in their day-to-day capacity on the issues addressed. To request an invitation, contact Melanie Paty.  

GENERAL NEWS

FSB Task Force on Climate-related Financial Disclosures releases final recommendations June 29, 2017 The FSB-TCFD released their final recommendations for climate-related financial disclosures, recognizing that many other organizations, including stock exchanges, “can provide valuable contributions towards adoption of the recommendations.” To correspond with the release of the FSB TCFD’s recommendations, the SSE also updated their Model Guidance on Reporting ESG Information to include the TCFD framework on reporting climate-related financial information. Luxembourg exchange CEO: Exchanges should support the growth of sustainable finance June 29, 2017 Robert Scharfe, CEO of the Luxembourg Stock Exchange writes about the role of exchanges in facilitating the development of the sustainable finance market “by creating scale and encouraging new issuers to tap into the market while protecting investors from the risk of green- and social-washing. This can be achieved by providing means for enhanced disclosure: facilitating issuance on one side, and controlling quality on the other.” We are still in: Response to Trumps’ withdrawal from Paris Agreement June 6, 2017 Following President Trump’s decision to withdraw US support of the Paris Climate Agreement, over one thousand states, cities, colleges and universities, investors, and businesses representing a sizeable percentage of the US economy signed onto a statement saying that they “will pursue ambitious climate goals, working together to take forceful action and to ensure that the US remains a global leader in reducing emissions.” Evan Harvey, Nasdaq: ESG reporting – Six reasons why June 5, 2017 Evan Harvey writes about the increasingly significant role that stock exchanges play in ESG data reporting and the impact that the UN Sustainable Stock Exchanges initiative has had on encouraging exchanges to publish ESG reporting guidance for their listed companies. He also explains the ways that ESG factors, which are often seen as non-financial performance indicators, actually have measurable financial consequences. Briefing: The greening of stock exchanges? June 3, 2017 This article provide a roundup of what’s been happening in stock exchanges in recent months, as they position themselves for a greater role in channeling investment flows related to green and climate finance. It discusses the role of the SSE initiative, as well as gives specific examples of progress that some individual stock exchanges have made in the space. Sebi sets up committee on corporate governance June 3, 2017 The Securities and Exchange Board of India (Sebi) has set up a committee to recommend on better corporate governance standards for listed companies. The 21-member panel chaired by Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank, is to give its report in four months.  

ESG INDICES AND PRODUCTS

Luxembourg Stock Exchange launches Chinese Green Bonds June 19, 2017 The Luxembourg Stock Exchange (LuxSE) and the Shanghai Stock Exchange (SSE) announced they have signed an agreement to launch a green bond index that synchronously displays quotes in China and Europe. The new index series tracks the performance of Chinese green bonds in Renminbi that are used to finance environmentally-friendly projects. The index series is composed of two indices that reflect the value of green bonds issued and listed on the stock market in Shanghai. The indices aim to provide greater transparency and facilitate access to Chinese green securities for investors in Europe.

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.