Baku, Azerbaijan – The United Nations Sustainable Stock Exchanges (UN SSE) initiative announces the publication of the first annual target reports under the Net Zero Financial Service Providers Alliance (NZFSPA), along with a comprehensive Completeness Review to highlight the exchanges' specific actions toward achieving net-zero goals. This important milestone comes as a highlight of COP29 Finance Day, reinforcing the critical role stock exchanges play in mobilizing the financial sector toward a transition to net zero emissions economies.
As global leaders gather in Baku, this key milestone marks the culmination of efforts by the NZFSPA Exchange Group to address the climate crisis. The NZFSPA was developed to provide a platform for exchanges and other financial service providers to set, implement, and report on ambitious targets in line with the Paris Agreement's 1.5°C trajectory.
A Milestone Achievement on the Road to Net Zero
The first round of NZFSPA Exchange Group reports showcases the actions and commitments of exchanges across the globe in decarbonizing their operations and value chains. These reports are crucial for tracking progress and setting the standard for transparency and accountability in the financial sector’s journey toward net zero. Alongside these reports, the Completeness Review provides an overview of the target-setting process, summarising the progress exchanges are making to meet their net-zero objectives.
The reports cover several critical areas, including:
- Emission Reduction Targets: Specific, measurable goals for reducing greenhouse gas emissions.
- Transition Strategies: Detailed plans for exchanges to support the broader transition to a net zero economy.
- Market-Focused Actions: Actions to encourage and assist markets to move towards net zero.
A Word from the Leadership
In a statement, Anthony Miller, Chief Coordinator of the UN SSE, noted: “We applaud the efforts of exchanges who are leading their markets toward net zero emissions through product innovation, market education and reporting standardization.”
Tamsin Ballard, Chief Initiatives Officer, PRI, said: “PRI welcomes the publication of net zero targets from NZFSPA’s Exchange Group members. These exchanges are leading the way through their public commitment to a net zero, climate-resilient future. PRI looks forward to working with these market leaders towards achieving net zero goals.”
Julie Becker, CEO of LuxSE, said: “Market operators are uniquely positioned to shape the net zero pathway in capital markets. This spurred the Luxembourg Stock Exchange to join GFANZ in 2021, to commit to achieving net zero emissions by 2050 or sooner and to supporting market participants in reaching their respective net zero goals. We are today pleased to release our first Target Setting Progress Report, which outlines both our exchange-focused and market-focus targets. Achieving this initial step was made possible through the support of the UN SSE initiative and the Net Zero Financial Services Provider Alliance group. We are convinced that when we work together towards the same objectives, we can create more sustainable and inclusive capital markets.”
Jorge Alegría, CEO, Bolsa Mexicana de Valores, said: “At Bolsa Mexicana de Valores, our progress toward Net Zero goals reflects our commitment to Mexico’s sustainable development. We are determined to take on the responsibility of leading the climate transition in Mexican financial markets, driving initiatives that establish them as a benchmark in climate change mitigation and adaptation. With each step, we aim to strengthen our country’s future, setting high standards and creating a positive, lasting impact for generations to come.”
LOH Boon Chye, CEO, SGX Group, said: “We have made steadfast progress in our dynamic, multi-year transition journey. As we continuously refine our approach with emerging knowledge and standards, we are committed to working with the ecosystem towards an inclusive, net-zero world. Our focus will be on facilitating credible transitions within our marketplace, supporting capital mobilisation, and fostering market stewardship through collaborations.”
Moving Forward
As the world races toward the critical deadline of 2050 for net zero, the actions taken by exchanges today will have far-reaching impacts. The UN SSE, in its role of secretariat for the NZFSPA Exchange Group, remains committed to supporting exchanges as they implement their net-zero strategies, providing technical guidance and fostering collaboration within the financial sector.
The full NZFSPA Exchange Group Target Reports and Completeness Review are now available on the UN SSE website. The UN SSE encourages all stakeholders, from policy-makers to investors, to engage with the findings and support the ongoing efforts to achieve a net-zero financial sector.
About NZFSPA Exchange Group
The Net Zero Financial Services Providers Alliance (NZFSPA) Exchange Group is a global coalition of financial exchanges and service providers committed to accelerating the transition to a net-zero global economy by 2050. As part of the Glasgow Financial Alliance for Net Zero (GFANZ), the group works to integrate climate goals into financial markets and foster sustainable investment practices. The Exchange Group within the NZFSPA is an official Race to Zero partner. You can find out more about the NZFSPA Exchange Group here: https://sseinitiative.org/net-zero
