March News Highlights

28 March 2019

This month includes news from JPX, MOEX, NSE Kenya, CSE, ADX, Nasdaq, NYSE, EGX, LuxSE, Deutche Börse, SET NSE Nigeria 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

Exchange in Focus: Japan Exchange Group co-hosts TCFD Symposium The Japan Exchange Group (JPX), an SSE initiative partner exchange since 2017, partnered with Japan’s Financial Services Agency (JFSA) to host a symposium on the Task Force on Climate-related Financial Disclosures (TCFD), entitled “The Power of the TCFD Framework in Company-Investor Dialogue”

Moscow Exchange joins United Nations Sustainable Stock Exchanges initiative to deepen ESG commitment 2 April 2019 “We’re delighted to join a global community of securities exchanges committed to creating more sustainable capital markets and a more sustainable world... I am confident our membership in the SSE initiative will open new opportunities to deepen our commitment to environmental, social and governance (ESG) practices both for MOEX and for the Russian market as a whole,” said Alexander Afanasiev, Chief Executive Officer of Moscow Exchange. More than 80 stock exchanges ring the bell for gender equality March 2019 To mark International Women’s Day on 8 March, more than 80 stock exchanges are participating in the international ‘Ring the Bell’ campaign to raise awareness about the business case for women’s economic empowerment and to highlight opportunities for business and financial markets to advance gender equality and sustainable development. SSE, IFC, Kenya CMA and Nairobi Stock Exchange are building momentum for more sustainable capital markets- at home and abroad 4 March 2019 The Capital Market Authority in Kenya (CMA) and the Nairobi Securities Exchange (NSE) joined the IFC and UN Sustainable Stock Exchanges (SSE) initiative in engaging listed companies and issuers of securities in Kenya on the topic of improving ESG communication with investors. At the Workshop in Nairobi, the partners provided an overview on the strategic value and demand for better annual reporting and disclosure practices. EVENT: UN SSE initiative 10 Year Anniversary Celebration 26 September 2019 In 10 years, the SSE has grown to 85 exchanges, listing 50,000 companies valued at 85 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.

CONSULTATIONS

PRI Reporting Framework consultation Deadline: 30 April 2019 As part of PRI's Blueprint for responsible investment– looking at how to take responsible investment forward over the next decade – we committed to undertake a review of our current Reporting Framework. The aim of the review is to ensure that the PRI’s reporting and assessment is fit for purpose, remains relevant to evolving responsible investment practices and is useful for signatories and the responsible investment market as a whole.  

STOCK EXCHANGE NEWS

CSE and GRI conduct programme to foster transparency and sustainability among listed companies 5 April 2019 The Colombo Stock Exchange (CSE) in collaboration with the Global Reporting Initiative (GRI) recently held a workshop on corporate transparency and sustainability reporting for the Listed companies. This was the third event held, with the intention to help participants discover the business case for embracing sustainable practices, while focusing on other topics such as monitoring and communicating sustainable performance effectively. Find out more from GRI here.

ADX stresses commitment to improving corporate governance framework 31 March 2019 On the sidelines of the Arab Capital Markets Conference in Amman, the Abu Dhabi Securities Exchange (ADX) acting Chief Executive Khalifa Salem Al Mansouri stressed ADX's commitment to improving corporate governance frameworks and enhancing disclosure and transparency to protect investor's rights.  "The exchange continues to strive to improve financial markets' performance to make them more sustainable and transparent, with a view of encouraging long-term sustainable investments and to promote institutional disclosure practices. The move is driven by ADX's entry into the United Nations Sustainable Stock Exchanges Initiative, which aims to ensure that financial markets are more sustainable and transparent and improve the performance of listed companies at both environmental and social levels." Nasdaq named "Best Place to Work for LGBTQ Equality" by the Human Rights Campaign Foundation 28 March 2019 In recognition of its inclusive workplace, Nasdaq received a perfect score of 100 percent on the 2019 Corporate Equality Index (CEI), the nation’s leading benchmarking survey and report on corporate policies and practices related to LGBTQ workplace equality, administered by the Human Rights Campaign (HRC) Foundation. Intercontinental Exchange Releases 2019 Corporate Responsibility Report 28 March 2019 Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, released its annual Corporate Responsibility Report. The report complements Intercontinental Exchange’s enhanced corporate citizenship website which provides timely information and resources that are meaningful to stakeholders as issues related to environmental, social and governance topics continue to evolve. EGX highlights ESG as key macrotrend for 2019 in WFE Focus  28 March 2019 In the March WFE Focus article, Mohamed Farid Saleh, Executive Chairman, The Egyptian Exchange (EGX) outlines the most important macro trends that will impact market infrastructure in 2019. LuxSE launches a centralised bond information hub connecting with the interbank and stock exchange markets in China 28 March 2019 Initiated by the Luxembourg Stock Exchange (LuxSE), cooperation agreements on the following projects were signed: A data exchange agreement with the Shanghai Clearing House; A Green Bond Channel with the Shenzhen Stock Exchange (SZSE), complementary to the existing one with the Shanghai Stock Exchange (SSE); An extension of the Green Bond Channel with SSE by displaying international securities on the Shanghai platform; A partnership agreement with Bank of China (BOC) for cross-border markets connectivity. Deutsche Börse shows commitment with its sustainable financing 26 March 2019 Deutsche Börse and its subsidiary for post-trading services, Clearstream Banking S.A., enhanced their credit line with a “positive incentive loan”. “The new ESG dimension which we added to the credit agreements reflects how comprehensively sustainability management is viewed within Deutsche Börse Group. This is an additional incentive to further integrate the own business activity in particular with corporate governance and ecological aspects,” said Kristina Jeromin, Head of Group Sustainability, Deutsche Börse and Co-Head of the Green and Sustainable Finance Cluster Germany. SET Begins Annual Social Development Awards With Library Development 22 March 2019 The Stock Exchange of Thailand (SET) has carried on with its social development awards for 12 consecutive years to encourage organizations and individuals who dedicate their efforts to enhance the society in seven areas: music encouragement, sports promotion, urban development, rural development, preventing and solving drug problems in the community and society, library development and education development. Nigerian exchange, GRI host sustainability reporting workshop 19 March 2019 The Nigerian Stock Exchange (NSE) in partnership with the Global Reporting Initiative (GRI), held a half-day workshop on sustainability reporting where the NSE Sustainability Disclosure Guidelines was unveiled, on Tuesday, March 19, 2019, at the Exchange House in Lagos. Read the welcome speech by NSE Divisional Head here. NSE’s incubation scheme gains momentum with more admissions 18 March 2019 Dubbed ‘Ibuka’, which is a Swahili translation for ‘emerging’, the programme seeks to unlock the potential of small and medium sized companies at the Nairobi Stock Exchange (NSE). The programme intends to enhance the firms’ financial, technical, operational, commercial and strategic aspects of their businesses. It also enables companies to raise capital through debt and equity market as they track valuation as well as produce specialized documents such as capital raising and equity raising reports. ASEAN Capital Markets Forum advances regional integration efforts through roadmap for sustainable capital markets 18 March 2019 The ASEAN Capital Markets Forum (ACMF) today met in Bangkok to endorse the Roadmap on ASEAN Sustainable Capital Markets to promote ASEAN asset classes for sustainable investment, in line with ASEAN’s theme on “Advancing Partnership for Sustainability”. The Roadmap will be proposed to the ASEAN Finance Ministers’ Meeting in Chiang Rai for acknowledgment in April 2019. The WFE hosts Emerging Markets Forum for industry stakeholders 15 March 2019 The World Federation of Exchanges (“WFE”), the global industry group for exchanges and central counterparties (CCPs), hosted a one-day Emerging Markets (EM) Forum to explore the themes arising from two of its recent reports on the factors that attract international investors to emerging markets. Speakers at the forum included representatives from the UN Sustainable Stock Exchanges Initiative (SSE), the European Bank for Reconstruction and Development (EBRD), and Aviva, alongside many WFE. Colombo Stock Exchange and IFC launch updated directory of women on boards of companies listed on the CSE 11 March 2019 The Women on Boards Directory of companies listed on the Colombo Stock Exchange (CSE) was first published in March 2018. The 2019 publication is an update to capture any changes that have taken place since last year so that the directory accurately reflects the experience and skills of the female directors of CSE listed companies. The goal is to have a repository of qualified women directors that inspires other women to advance and grow, and showcases the important role women on boards play in Sri Lanka in the different industry sectors. Luxembourg Stock Exchange wins 2019 Green Bond Pioneer Award from CBI 3 March 2019 The Green Bond Pioneer Awards (GBPA) are the premier annual recognition of achievement by organisations, financial institutions, governments and individuals who have demonstrated leadership through pioneering initiatives and green issuance, and have provided positive examples of climate-resilient and low-carbon investments. The CBI, who grants the awards, is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy. The awards’ jury is composed of a buy-side advisory committee.  

REGULATOR NEWS

ESMA calls for wider EU scrutiny of non-financial reporting 28 March 2019 The European Securities and Markets Authority (ESMA) published its Annual Report on the enforcement and regulatory activities of accounting enforcers within the European Union (EU). “The disclosure of ESG information by issuers, along with high-quality financial reporting, is an important step in providing investors with a comprehensive understanding of a company’s performance and impact of its activities. To effectively support investment decision-making in the context of sustainable finance, it is essential that issuers scale up their efforts to provide high quality non-financial disclosures” said Steven Maijoor, Chair of ESMA.

Regulators to explore removing 'barriers' to addressing 'unprecedented' climate risk 13 March 2019 The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are set to begin cross-financial sector talks in the regulators' first significant step towards removing barriers to companies' attempts at mitigating climate-related financial risks.  

ESG INDICES AND PRODUCTS

FMDQ Supports Climate Change Solutions and Sustainable Development, Admits the Pioneer Climate Bond Certified Green Bond to its Platform 1 April 2019 This issuance is the first corporate bond to benefit from the Nigerian Green Bond Market Development Programme launched in June 2018, by FMDQ, Climate Bonds Initiative (CBI), and the Financial Sector Deepening Africa (FSD Africa), to provide training/capacity development for regulators, issuers, investors and intermediaries, amongst others, as part of efforts to introduce green bonds as an investible instrument in the Nigerian DCM that can be tapped to close the huge infrastructure gap.

Moscow Exchange To Launch Sustainability Indices 1 April 2019 The new indices, the MOEX-RSPP Responsibility and Transparency Index and the MOEX-RSPP Sustainability Vector Index, will be based on RSPP’s annual analysis of Russia’s largest companies demonstrating a robust ESG (Environmental, Social, Governance) profile. The indices will include companies that disclose the most complete information about their activity in the fields of sustainability and corporate social responsibility. Sri Lanka stock exchange to launch sustainability index 28 March 2019 The Colombo Stock Exchange (CSE) will be launching a new index for listed firms in Sri Lanka which have the best environment, social, and governance (ESG) sustainable disclosures, a top official said. Contributing to the Sustainable Development Goals with ESG ETF 21 March 2019 In this live interview, Bloomberg's Eric Balchunas and Scarlet Fu break down the iShares Sustainable MSCI Global Impact ETF (ticker: SDG) with Francesco Ambrogetti, partnerships development specialist at the Capital Development Fund of the UN (UNCDF). IIX’s Women’s Livelihood Bond™ Program (WLB2) gains support from Australian government; on track to launch Q2 2019 6 March 2019 IIX has announced partnering with the Australian Government’s Department of Foreign Affairs and Trade (DFAT) for the Women’s Livelihood BondTM Program (WLB2). The WLB2 is a US$100M bond series empowering one million underserved women in Asia with sustainable livelihoods. The WLB2 will be sold in three tranches.  

MANAGEMENT NEWS

New Zealand's Financial Markets Authority Confirms New Appointments To Executive Committee 28 March 2019 Rob Everett, Chief Executive of the FMA, said he was delighted to announce that Louise Nicholson had joined the executive team as Director of External Communications and Investor Capability, and that Scott McMurray has been appointed as Director of Strategy and Stakeholder Relations.

Saudi Arabia Capital Market Authority Advisory Committee 27 March 2019 The Board of the Capital Market Authority (CMA) issued a resolution to recompose the Advisory Committee for its sixth term to comprise of 12 part-time members from market participants, experts, specialists and experienced college professors. The Committee's composition took into consideration a wider representation of market participants.

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.