This month includes news from BEVSA, Euronext, HKEX, LSE, LuxSE, 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
Derivatives exchanges partner with the UN on sustainability19 October 2021
During the UNCTAD World Investment Forum, the United Nations Sustainable Stock Exchanges initiative launched the SSE derivatives network. This marks the first time that derivatives exchanges are able to join the SSE initiative as members. This expansion of the membership to include derivatives market operators follows the 2021 SSE-WFE joint publication guidance on How Derivatives Exchanges Can Promote Sustainable Development.
New SSE Gender Equality Database22 October 2021
The UN Sustainable Stock Exchanges (SSE) initiative has launched its new SSE-IFC Gender Equality Database which tracks the gender balance of issuer’s boards. The database builds on the SSE Gender Equality workstream and the SSE’s analysis of the state of gender equality in G20 markets published earlier this year on International Women’s Day.
The UN Sustainable Stock Exchange welcomes BEVSA25 October 2021
The UN Sustainable Stock Exchanges initiative (SSE) welcomes Bolsa Electrónica de Valores del Uruguay S.A. (BEVSA). The SSE’s newest member joins a network of now 109 stock exchanges around the world that are committed to promoting sustainable development.
SSE events part of the 7th UNCTAD World Investment Forum (WIF) – Videos18-22 October 2021
You can now watch all SSE’s webinars held during the UNCTAD World Investment Forum - the largest global platform for investment and development. These high-level gatherings identify key global challenges in sustainable finance and the role exchanges - in collaboration with policy makers, investors, regulators and companies - to promote responsible investment to accelerate sustainable development.
SSE upcoming events:UN SSE, CDSB & IFC to provide free climate disclosure training to exchanges and their issuersFrom 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: [email protected]
COP26 - THE 2021 UNITED NATIONS CLIMATE CHANGE CONFERENCESpecial topic in this edition, the COP26 summit brings parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.
Stock exchanges join global finance community in race to zero at COP2603 November 2021
The UN SSE is proud to announce that six of its members have joined the Glasgow Finance Alliance for Net Zero. The exchanges are all members of the recently launched Net Zero Financial Service Providers Alliance, part of the broader Glasgow Financial Alliance for Net Zero (GFANZ) that has been led by the UN Special Envoy on Climate Action and Finance, Mark Carney. The UN SSE plays a supporting role for the financial service providers alliance and will be working with exchanges around the world to help them with their net zero commitments.
COP 26: CEO Roundtable: Race to Zero – How stock exchanges can tackle the climate crisis03 November 2021
In this session, leading stock exchange CEOs discussed the role of exchanges in tackling the climate crisis, highlight specific initiatives from their markets and explain why they are supporting initiatives such the Glasgow Financial Alliance for Net Zero (GFANZ).
COP 26: Role of exchanges in promoting innovative climate solutions03 November 2021
In this session we discussed the important role Stock exchanges play in mobilising finance to support the transition to net zero. They do this through the provision of innovative markets, products and services that cater for a range of investor and issuer needs. As market operators, exchanges sit at a key intersection point within the economies in which they operate and act as valuable sources of information and education.
COP26 coalition worth $130 trillion vows to put climate at heart of finance03 November 2021
Banks, insurers and investors with $130 trillion at their disposal pledged at the COP26 UN climate conference to put combating climate change at the centre of their work, and gained support in the form of efforts to put green investing on a firmer footing.
Listed companies should prepare for the climate transition by Claire Dorrian, LSEG03 November 2021
With COP26 underway, it is clear we all need to take decisive action. The future health of our planet cannot be protected unless we transform our understanding of the costs of how we live, how we move, how we do business and fundamentally, how we consume.
COP26: WFE’s Focus special series with Exchanges to discuss Climate Change
03 November 2021
As part of The World Federation of Exchanges (WFE) work around climate, here’s a series of video interviews where WFE asked exchanges to discuss their hopes and aspirations for COP26. They also talk about the efforts to address climate change and obtain climate neutrality, and issue a 'call to action' for exchanges to implement the goals of the Paris Agreement by translating them into policies, measures and actions.
EXCHANGE NEWS
LGX: Europcar Mobility Group is making its debuts with a EUR 500m SLB issuance07 October 2021
Europcar Mobility Group is making its debuts on Luxembourg Green Exchange (LGX) with a EUR 500m Sustainability-Linked Bonds issuance. The Issuer´s targets cover SDGs 11 & 13 and are aligned with the EU Taxonomy for sustainable activities focusing on low-emission vehicles or green vehicles.
LSE introduces new climate reporting guidance for issuers22 October 2021
The London Stock Exchange (LSE) has launched its Climate Transition Offering for London-listed companies. It is the first stock exchange to publish climate reporting guidance based on the United Nations Sustainable Stock Exchanges (SSE)’s Model Guidance on Climate Disclosure which is in line with the Taskforce for Climate Related Financial Disclosures (TCFD) recommendations. LSE’s Climate Reporting Guidance available here.
BNV: New law promotes sustainable finance in Costa Rica27 October 2021
In a role of leading initiatives from the capital market with the purpose of supporting the UN Sustainable Development Goals, BNV is giving support for the approval of file 22.160, a law to promote financing and investment for sustainable development through the use of thematic public offering securities.
Euronext and JA Europe expand the Blue Economy challenge to reach young entrepreneurs04 November 2021
Building on a successful pilot during the last school year 2020-21, Euronext and JA Europe has announced the expansion of their entrepreneurship, The Blue Challenge, to Denmark and Italy. The programme aims to boost financial literacy and encourage innovation to limit climate change and to foster the Blue Economy amongst young entrepreneurs.
HKEX publishes Guidance on Climate Disclosures05 November 2021
The Hong Kong Exchanges and Clearing Limited (HKEX) has published guidance to listed companies on climate disclosures, as well as an analysis of IPO applicants’ corporate governance and environmental, social and governance (ESG) practice disclosure.
LSE to develop 'market-based' decarbonisation project to improve sustainable financing05 November 2021
The London Stock Exchange (LSE) has announced plans to develop a "market-based" solution it says would accelerate the availability of financing for low carbon projects. According to the company, there is a growing consensus regarding the need for a global and scalable "voluntary carbon market" that can deliver a "rigorous, market-based approach" for investment in activities that reduce and remove global carbon emissions.
Saudi Exchange publishes ESG Disclosure Guidelines
05 November 2021
The Saudi 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 environmental, social and corporate governance (ESG) disclosures.
ICE and LSE look to ramp up carbon funds markets05 November 2021
Exchanges are using their expertise in trading to help with the fight against global warming — both the U.K.’s London Stock Exchange (LSE) and the Intercontinental Exchange (ICE) are launching efforts to expand the use of markets to finance the shift to a lower-carbon economy.
REGULATOR AND STANDARD SETTER NEWS
FSA Japan to require 4,000 companies to disclose climate risks04 October 2021
Japan's financial watchdog will require large companies to report their greenhouse gas emissions and make other climate-related disclosures.The new initiative from the Financial Services Agency is expected to cover around 4,000 companies, including those listed on the Tokyo Stock Exchange.
OECD: G20 urged to drive better environmental, social investing practices05 October 2021
The OECD called on governments to ensure global transparency, comparability and quality of core ESG metrics. The world's biggest economies need to do more to ensure environmental, social and governance-related ratings and investments are effective in the transition to a low-carbon economy, a report from the OECD said..
WEF: 57 organizations release open letter for EU to act on ESG25 October 2021
57 organizations released an open letter for the European Union to act on ESG disclosure standards. They encourage the European Commission to promote a global baseline set of standards through supporting the IFRS Foundation on the launch of the International Sustainability Standards Board (ISSB).
CFA Institute issued its Global ESG Disclosure Standards31 October 2021
CFA Institute issued its Global ESG Disclosure Standards for Investment Products. A voluntary global standards for disclosing how an investment product considers ESG issues in its objectives, investment process, and stewardship.
IFRS Foundation creates new sustainability standards board03 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.
FCA issues ‘A strategy for positive change: our ESG priorities’04 November 2021
The Financial Conduct Authority (FCA) of the United Kingdom has published ‘A strategy for positive change: our ESG priorities’ which sets out the regulator’s updated ESG strategy following the publication in October 2019 of Feedback Statement 19/6: Climate change and green finance.
ESG INDICES AND PRODUCTS
Fixed income ESG indices post record growth this year28 October 2021
Fixed income environmental, social and governance (ESG) indices experienced record-breaking growth last year as index providers look to diversify their ESG product offering, according to the latest Index Industry Association (IIA) global benchmark survey.
Nasdaq and Invesco partnership introduces two ESG ETF Offerings28 October 2021
Invesco and Nasdaq introduce two more new Environmental, Social and Governance (ESG) ETF offerings choices for investors looking to personalize their access to Nasdaq-listed companies.
EU launches first NextGenerationEU green bond with record demand31 October 2021
The European Commission has issued the first NextGenerationEU green bond, raising 12 billion euros (13.8 billion U.S. dollars) to be allocated exclusively to green and sustainable investments across the European Union (EU).
LSEG and JPX to develop net zero climate indices covering Japan’s equity market03 November 2021
London Stock Exchange Group (LSEG) and Japan Exchange Group (JPX) are expanding their existing partnership by developing climate indices based on the TOPIX 500 which provides diversified exposure across the Japanese stock market. Both Exchanges are Partner Exchanges of the SSE initiative and have been firmly and demonstrably committed to promoting sustainable investment.
RESEARCH
OMFIF: African markets must improve ESG integration - AFMI 2021 report22 October 2021
The Absa Africa Financial Markets Index evaluates financial market development in 23 countries, and highlights economies with the most supportive environment for effective markets.
OECD: Scaling Up GSSS Bond Issuances In Developing Countries31 October 2021
This report explores the global landscape of the Green, Social, Sustainability and Sustainability-linked (GSSS) Bond market based on research and interviews conducted with experts from public development banks, credit rating agencies, asset managers and industry associations.
CBI Sustainable Debt Market Summary Q3 202131 October 2021
Total volumes for the sustainable debt market – including labelled Green, Social and Sustainability (GSS) bonds, Sustainability-linked bonds (SLB) and Transition bonds – are well on their way to an annual trillion, reaching USD779.2bn in the first three quarters of 2021. Find out more about sustainable debt in the Market Summary from The Climate Bonds Initiative.
CDSB: TCFD Good Practice Handbook 202101 November 2021
In collaboration with the We Mean Business Coalition, the Climate Disclosure Standards Board highlights current examples of good practice disclosure from within companies’ mainstream financial reports, which are aligned with the four core elements of the TCFD recommendations.
