November News Highlights

12 December 2021

This month includes news from Euronext, HKEX, JSE, NSE 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  Policy Brief on Carbon emissions in public markets in G20 12 November 2021 The UN Sustainable Stock Exchanges initiative has launched a new Policy Brief on Carbon emissions in public markets. The research analyzed carbon emissions in public markets of over 2,000 companies on 22 stock exchanges in G20 countries. SSE delivers keynote to Exchange and Regulator Asian Roundtable 08 December 2021 The SSE delivered the keynote at the 3rd Asian Roundtable with the Stock Exchanges & Regulators held at the beginning of December. The event had the participation of exchanges from all over the world. SSE upcoming events:  UN SSE, CDSB & IFC to provide free climate disclosure training to exchanges and their issuers From 1st of September 2021 to 31st of March 2022 The SSE is ramping up efforts to provide climate disclosure training to exchanges' markets to help them implement the actions suggested in the model guidance and the action plan. 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 CDSB, are creating a multifaceted course for exchanges to distribute to their markets, free of charge. Past sessions training and upcoming sessions on SSE’s Events page. Contact: Invitation to participate in 8th Annual “Ring the Bell for Gender Equality” Ceremony The International Finance Corporation (IFC), the Sustainable Stock Exchanges (SSE) Initiative, UN Global Compact, UN Women and the World Federation of Exchanges (WFE) invite exchanges to participate in the 8th Annual “Ring the Bell for Gender Equality” Ceremony on International Women’s Day March 8, 2021, a global initiative by exchanges around the world to foster greater gender equality and highlight the benefits of a diverse and inclusive workplace. If your exchange is interested to participate, please fill out this form, so the global partners can provide you with further information and connect you to local organisations. COP26 - The 2021 United Nations Climate Change Conference Special topic in this edition where we highlight the actions and commitments taken after the UN climate summit, the COP26 in Glasgow brought parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. COP26 Finally Set Rules on Carbon Markets. What Does It Mean? 13 November 2021 After six years and many late nights haggling, a deal has finally been struck on the rules governing global trading in offsets. The details are arcane and complicated but here’s a look at what it means for the planet, companies, and countries. Exchanges at COP26: the report from Glasgow by Jeremy Grant, guest contributor 19 November 2021 Market leaders discussed at COP26 in Glasgow how stock exchanges can play a role in moving the ESG agenda forward. The announcement of the Glasgow Financial Alliance for Net Zero (GFANZ) that is worth as much as $130 trillion of private capital had been committed by group’s members to transforming the economy for net zero. How COP26 will change the world of finance 19 November 2021 The outcomes from COP26 will accelerate the flow of money away from businesses and projects that cannot demonstrate sustainability, increase investment in climate adaption initiatives in the developing world, and enhance transparency over curb emissions. After COP26, new questions arise over carbon trading as markets gain new prominence 23 November 2021 With the UN Climate Change Conference now settling into the rearview mirror, stakeholders questioned how carbon dioxide removal can be done with climate justice concerns in mind. EXCHANGE NEWS JSE announces commitment to supporting net zero by 2050 03 November 2021 The JSE has joined the Race to Zero Partner Initiative through the Net Zero Financial Service Providers Alliance (NZFSPA), and the Glasgow Financial Alliance for Net Zero (GFANZ) to promote and champion sustainability measures within South Africa, and internationally,  and has committed to supporting net zero by 2050. HKEX pleased to announce that it has joined the GFANZ 03 November 2021 Hong Kong Exchanges (HKEX) has joined the Glasgow Financial Alliance for Net Zero (GFANZ) and the Net Zero Financial Service Providers Alliance (NZFSPA), part of its ongoing commitment to the long-term sustainable development of global financial markets. LuxSE joins GFANZ through Net Zero Financial Service Providers Alliance 04 November 2021 The Luxembourg Stock Exchange (LuxSE) has announced that it is now a signatory of the Net Zero Financial Service Providers Alliance (NZFSPA). The alliance is part of the broader Glasgow Financial Alliance for Net Zero (GFANZ) launched by Mark Carney, the UN Special Envoy on Climate Action and Finance. NGX facilitates use of Green Bond in achieving SDGs objectives 09 November 2021 Nigerian Exchange (NGX) is currently working with leading market stakeholders to build the capacity of existing and potential corporate green bond issuers on green bond issuance process and reporting best practices. Muscat Stock Exchange announces ESG initiatives 14 November 2021 The Muscat Stock Exchange (MSX) has announced the establishment of a new section to focus on the important environmental, social and governance (ESG) issues and diversity and inclusion to achieve sustainable goals in Oman’s capital market. Exchanges sign up to boost climate funding and disclosure 15 November 2021 Bourses around the world among the 450 institutions that make up the Glasgow Financial Alliance for Net Zero (GFANZ), signalling an increasing desire by the world’s exchanges to play a bigger role in pushing companies to decarbonise. SET announces support for climate-related financial disclosure standard 17 November 2021 The Stock Exchange of Thailand (SET) has announced its support for the Task Force on Climate-related Financial Disclosures (TCFD), demonstrating a commitment to building a more resilient financial system and safeguarding against climate risk through better disclosures. Euronext outlines ambition to become leading ESG index provider in Europe by 2024 18 November 2021 Euronext has outlined ambitious plans to become the leading environmental, social and governance (ESG) index provider in Europe within the next three years. Published in its strategic plan last week, Growth for Impact 2024. Bursa Malaysia has signed partnership to push ESG agenda 19 November 2021 Bursa Malaysia Bhd has signed a memorandum of understanding with Alliance Bank Malaysia Bhd and OCBC Bank Malaysia Bhd to advance Malaysian’s public listed companies in adopting environmental, social and governance (ESG) practices. Nasdaq Named to Dow Jones Sustainability Index for the Sixth Consecutive Year 22 November 2021 Nasdaq has been named for the sixth consecutive year to the Dow Jones Sustainability Index (DJSI), one of the most prestigious environmental, social, and governance (ESG) ranking efforts. Cboe Global Markets CEO: The new generation of retail investors is transforming markets 01 December 2021 In an interview for the World Federation of Exchanges, Ed Tilly - Chairman, President and CEO, Cboe Global Markets - discussed the key industry themes for 2022 and why Cboe has recently become a founding member of the derivatives partner exchanges network of the UN SSE. HKEX published Net-Zero Guide to help guide companies in developing a pathway to net zero 02 December 2021 Hong Kong Exchanges (HKEX) has introduced Net-Zero Guide, the essential steps for businesses to develop a pathway to net zero, aiming to help companies to understand their greenhouse gas (GHG) emissions. IDX supports green investment development in capital market 02 December 2021 Indonesia Stock Exchange (IDX) continues to support green investment development in the domestic capital market, with the adoption of environmental, social and governance (ESG) goals. LGX: ICBC brings multi-currency carbon neutrality themed green bond 02 December 2021 In a hybrid Ring the Bell ceremony attended by Luxembourg Minister of Finance Pierre Gramegna, the Luxembourg Stock Exchange (LuxSE) and the Industrial and Commercial Bank of China (ICBC) celebrated the listing of the bank’s recent multi-currency carbon neutrality themed green bond on LuxSE. Nairobi Securities Exchange launches ESG Disclosure Guidance and mandatory reporting 03 December 2021 The Nairobi Securities Exchange (NSE) has launched its Environmental, Social and Governance (ESG) Disclosures Guidance Manual. By issuing these guidelines, the NSE aims at improving and standardizing ESG information reported by listed companies in Kenya. The Tunis Stock Exchange publishes ESG Reporting Guide 05 December 2021 The Tunis Stock Exchange has recently launched its new ESG Disclosure Guidelines as a useful resource to aid issuing companies understand the context, characteristics and market best practices in ESG disclosures. The Guide presents the principles promoted by the UN SSE initiative. The BNV Sustainability Awards 2021 – Costa Rica Stock Exchange 08 December 2021 The BNV Sustainability Awards were recently held for the third consecutive year, as a recognition granted by the Costa Rican Stock Exchange to the efforts and commitments made by capital market participants to align the stock market with sustainable development through the different initiatives that the stock exchange has been promoting. REGULATOR AND STANDARD SETTER NEWS IFRS Foundation announces International Sustainability Standards Board 03 November 2021 The IFRS Foundation has announced the creation of its new International Sustainability Standards Board (ISSB) that will develop a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. Nigerian SEC moves for sustainable green investment in financing solar energy 09 November 2021 The Securities and Exchange Commission of Nigeria has moved for the issuance of green and sustainable instruments in their capital market, highlighting that issuance of green bond will go a long way to assist in financing solar energy and other environmental-friendly infrastructure. ECB says EU green bond standard should be made mandatory 10 November 2021 The EU’s proposed green bond standard should be made mandatory for new green bond issuances, according to the European Central Bank (ECB). GRI engaging with regional markets to increase sustainability reporting 12 November 2021 In India, Sri Lanka and Bangladesh, GRI has collaborated with local exchanges – the Bombay Stock Exchange (BSE), Colombo Stock Exchange (CSE) and the Dhaka Stock Exchange (DSE) – to deliver a series of workshops and seminars to increase sustainability reporting. IOSCO Report on ESG Ratings and Data Products Providers 23 November 2021 The Board of the International Organization of Securities Commissions (IOSCO) has published a set of recommendations applicable to ESG Ratings and Data Product Providers. Carney Says Carbon Offsets Must Be Limited to Residual Emissions 23 November 2021 The use of carbon offsets should be a last resort to cover only a small fraction of emissions if the world is to achieve meaningful decarbonization, according to Mark Carney, the co-chair of the Global Financial Alliance for Net Zero. ASEAN releases first version of sustainable finance taxonomy 26 November 2021 The financial institutions of the Association of South East Asian Nations (ASEAN) released the first version of a taxonomy for sustainable finance activities providing a framework for discussions between the public and private sectors. CDSB launches new Biodiversity application guidance 30 November 2021 The Climate Disclosure Standards Board (CDSB) has launched a new Biodiversity application guidance which is part of a series of CDSB Framework application guidance, that aims to extend the TCFD recommendations and its core elements to nature. Egypt's FRA approves amendment of regulation of capital market law regarding sukuk bonds 30 November 2021 The Financial Regulatory Authority (FRA) has approved the inclusion of 4 new financing tools in the capital market, including Social Bonds, Sustainable Development Bonds, Environmental Social and Governance Bonds, Gender equality and women's empowerment bonds. BOJ Outlines Three ‘Essential’ Elements of Climate Response 03 December 2021 Bank of Japan governor Haruhiko Kuroda discussed scenario analysis, sustainable finance, and enhanced disclosures. In addition, the Bank has set up an internal network, the Climate Coordination Hub, to enhance bank-wide initiatives on climate change. EU Lawmakers Push for Stricter Bond Rules to Avoid Greenwashing 07 December 2021 The European Union is looking to tighten the region’s planned green bond standards to mitigate greenwashing from issuers of environmentally-friendly debt. ESG INDICES AND PRODUCTS S&P Dow Jones Indices and the Lima Stock Exchange Launch the S&P/BVL Peru General ESG Index 09 November 2021 S&P Dow Jones Indices and the Lima Stock Exchange ("BVL) have announced the debut of the S&P/BVL Peru General ESG Index, the latest in S&P DJI's growing family of global ESG indices based on some of the world's most highly-tracked regional and country-specific benchmarks. Qatar Stock Exchange launches first ESG tradable index 16 November 2021 The Qatar Stock Exchange (QSE) has partnered with MSCI to launch an environmental, social and governance (ESG) tradable index in response to growing demand for sustainable investing products. S&P Dow Jones Indices Launches ESG Version of the S&P 500 Equal Weight Index 21 November 2021 S&P Dow Jones Indices has announced the launch of the S&P 500 Equal Weight ESG Leaders Select Index based on the equal weighted version of the iconic S&P 500. ICE to launch global carbon futures contract in early 2022 30 November 2021 Intercontinental Exchange (ICE) will launch a global carbon futures contract in early 2022, which will enable companies to hedge future carbon costs. BME launches the IBEX Gender Equality Index to promote gender equality 30 November 2021 Bolsas y Mercados Españoles (BME) has announced the launch of the Ibex Gender Equality Index. With this launch, BME and SIX reinforce their ESG index family, as part of their commitment to sustainability. Sovereign Wealth Funds Dramatically Step Up Their Focus on ESG 18 November 2021 Sovereign wealth funds are starting to take environmental, social and corporate governance (ESG) issues a lot more seriously, in a sign that some of the world’s most influential investors may be ready to reallocate their vast fortunes in more planet-friendly ways. Leading financial institutions commit to actively tackle deforestation 02 November 2021 More than 30 leading financial institutions, collectively with over US$ 8.7 trillion in assets under management have committed to tackle agricultural commodity-driven deforestation as part of broader efforts to shift towards sustainable production and nature-based solutions. RESEARCH BIS: Does gender diversity in the workplace mitigate climate change? 16 November 2021 In a recent paper the Bank for International Settlements asks how more women in managerial positions improve firm environmental performance. With matching firm-corporate governance characteristics with firm-level carbon dioxide (CO2) emissions over the period 2009-2019 to study the relationship between gender diversity in the workplace and firm carbon emissions. IFC - Sustainable Bonds: Bridging the Gap for Gender Equality 30 November 2021 As part of efforts to bring greater clarity on what the bond market can do to advance gender equality, IFC, in partnership with UN Women and the International Capital Market Association, developed Bonds to Bridge the Gender Gap: A Practitioner’s Guide to Using Sustainable Debt for Gender Equality. ‘Gender-lens’ investors direct their money to women-led companies 01 December 2021 Gender-lens investors are looking to direct their money to companies with more women on their boards and in management. Greater gender diversity is related to higher stock performance, improved risk management and lower incidences of fraud, research shows.  

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.