October News Highlights
10 November 2020
SSE INITIATIVE NEWS & EVENTSUpcoming event: Sustainable Stock Exchanges – Scaling up Climate-related Financial Disclosure 16 November 2020 In the context of this year’s London Climate Action week, representatives from the LSEG and JSE, in discussion with CDSB and the SSE, will discuss the SSE’s upcoming guidance on climate-related disclosure. The online event, co-organized by the CDSB and the SSE, will take place on 16 November at 0900 New York/1400 London/ 1500 Geneva. Follow the link to Register! SSE kicks off work of Climate Disclosure Advisory Group 21 October 2020 SSE launched a new project to support exchanges in providing guidance to issuers on climate disclosure. The ‘Zero Draft’ brainstorming webinar took place on Wednesday 21 October 2020 at 09:00 and 16:00 Geneva Time. Following the link to see videos from Mark Carney and the CEOs of LSE and JSE launching this workstream. See also the list of participants and summary of discussions. SSE Global Dialogue postponed due to Covid-19 26 October 2020 As a result of the ongoing impact of the COVID-19 pandemic, the SSE flagship Global Dialogue, scheduled for 7 December 2020 in Abu Dhabi, will be postponed pending further notification. The decision to delay the event was made due to ongoing disruption to international travel, government restrictions on conferences and exhibitions remaining in place throughout the remainder of 2020. SSE joins World Investor Week 16 October 2020 World Investor Week (WIW) is a week-long, global campaign promoted by IOSCO to raise awareness about the importance of investor education and protection and highlight the various initiatives of securities regulators in these two critical areas. UN SSE welcomes the Bulgarian Stock Exchange 16 October 2020 The Bulgarian Stock Exchange has solidified its commitment to transparency and sustainability by becoming a member of the UN Sustainable Stock Exchanges. The SSE’s newest member joins a network of now 98 stock exchanges around the world that are committed to sustainable development through transparent capital markets that align with sustainable development objectives.
STOCK EXCHANGE NEWSLuxSE first SSE Partner to win UN Climate Award 28 October 2020 Luxembourg Green Exchange (LGX) has been recognised by the United Nations Climate Change office for its leadership in promoting green finance. LGX was awarded the prestigious prize in the category ‘Financing for Climate Friendly Investment’ at the United Nations Global Climate Action Awards 2020. HKGFA 2020 Annual Forum Financing A Green and Inclusive Recovery 05 November 2020 The HKGFA 2020 Annual Forum was held virtually on Thursday 5th November 2020 and it marked our two-year birthday since inauguration in September 2018. LuxSE contributes to new whitepaper on Green Bonds 29 September 2020 TheLuxSE joins other players in the sustainable finance field in Luxembourg to share insights in a new series of publications entitled ‘A journey through Green Bonds, Microfinance, Impact Investing and ESG’, published by Banque de Luxembourg Investments, Sperling & Star and BZZ Advisory. The first publication in the series is dedicated to Green Bonds and has just been released. London Stock Exchange: Building dialogue between investors and issuers on ESG 20 October 2020 Investor focus on ESG continues to increase – a trend accelerated by the COVID-19 global pandemic. The challenge for issuers is to focus and improve their ESG performance as well as how they communicate and engage with investors. Nigerian Stock Exchange: Building A Sustainable Oil & Gas Industry Post COVID-19 23 October 2020 Oil and Gas industry experts have highlighted collaboration and innovation as the fundamental tools required to address the impacts of COVID-19 on the sector. This was made known at the oil and gas webinar organised by The Nigerian Stock Exchange (NSE or The Exchange) on Tuesday, 20 October 2020 themed, “Perspectives of Operators and Industry Experts Post-COVID-19”. Bahrain Bourse to Empower Women with New Initiatives 24 October 2020 This initiative falls in line with Bahrain Bourse ESG Agenda and is aligned with Sustainable Stock Exchanges initiative, World Federation of Exchange Sustainability principles, Gender Equality Committee goals, and female empowerment objectives.
REGULATOR AND STANDARD SETTER NEWSIOSCO: Open response to the open letter from CDP, CDSB, GRI, IIRC and SASB proposing avenues for working together to meet the need of the capital markets 28 October 2020 IOSCO welcomes the publication of the Statement of Intent and the Open Letter and the public commitment of standard setter organizations to collaborate towards a comprehensive corporate reporting system that meets stakeholders’ information needs on both enterprise value creation and sustainable development. Securities and Exchange Commission of Brazil launches the Sustainable CVM Series 13 October 2020 The Securities and Exchange Commission (CVM) launched the “Sustainable CVM Series”, a new series of guidance documents on sustainable finance. In this first volume, the Regulator presents a guide focused on the inclusion of ESG (Environmental, Social and Governance) issues with respect to citizen's investment decision making. The series was launched within the World Investor Week (WIW 2020). Bank of England: company disclosures on climate risks will be mandatory 16 October 2020 Current rules on company disclosures to help markets price in risks from climate change will become mandatory, a senior Bank of England official said on Friday. It is the latest push in the financial sector to harmonise standards globally so that investors can better compare and track how companies are shifting to a lower-carbon economy and for asset managers to make more informed decisions.
ESG INDICES AND PRODUCTSEuropean Commission to issue EU SURE bonds of up to €100 billion as social bonds 07 October 2020 The EU SURE Social Bond Framework is a document which will enable the Commission to issue its SURE bonds worth up to €100 billion, as social bonds. To ensure that, it explains to potential investors how the EU SURE social bonds are aligned with the four components of the Social Bond Principles (SBP) established by the International Capital Market Association (ICMA). Refinitiv Arab Federation of Exchanges Low Carbon Select Index 02 October 2020 Refinitiv AFE Low Carbon Select Index offers an innovative benchmark for investors wishing to commit capital to companies that actively invest in and promote low carbon activities in the running of their businesses. Since the index includes those companies as constituents that are investing to reduce energy consumption and hence contributing to lower the carbon footprint of the region, it is the best fit and generates the high interest and demand among investors BNP Paribas AM launches world’s first blue economy ESG ETF 13 October 2020 BNP Paribas Asset Management (BNPP AM) has expanded its ESG range with the launch of the world’s first blue economy ETF. Sustainable thematic ETFs have been a big focus for BNPP AM. Last year, the French asset manager launched Europe’s first circular economy ETF, the BNP Paribas Easy ECPI Circular Economy Leaders UCITS ETF (REUSE), that offers exposure to 50 large-cap stocks that produce goods and services in a sustainable manner. Global Green Bond Sales Seen Doubling Beyond $2 Trillion by 2023 13 October 2020 Global green bond issuance could surpass $2 trillion in the next three years, according to NN Investment Partners, an asset manager specializing in sustainable investment. The European Union’s planned green bond standards and issuance from next year, plus further sales from individual governments, are all likely to boost the market. Cumulative global issuance broke through the $1 trillion mark this month. Egypt launches its first green bond offering on London Stock Exchange 15 October 2020 The Egyptian government sovereign green bond offering is valued at $750 million with a five year term. This offering is the largest in the Middle East and North Africa region, and the first of its kind on the London Stock Exchange. Deutsche Bank leads largest ever social bond for EU 23 October 2020 Deutsche Bank helped the European Union (EU) break new records this week by leading its inaugural jumbo social bond. The 17 billion euro issuance, split between a 10 billion euro 10-year and a 7 billion euro 20-year tranche was the largest social bond ever. With an order book exceeding 233 billion euros, it attracted more demand than any other bond in history according to Refinitiv. Vaccine bond sale raises $500m to fund immunisation A vaccine bond has raised $500 million from investors in a sale that garnered strong demand to fund immunisation programmes in developing countries, reported the Financial Times. The funding was raised for Gavi, the Vaccine Alliance, by the International Finance Facility for Immunisation (IFFIm). Translations of the Sustainability - Linked Bond Principles are published 06 October 2020 Sustainability-Linked Bonds aim to further develop the key role that debt markets can play in funding and encouraging companies that contribute to sustainability from an environmental and/or social and/or governance perspective. Chile Launches Sustainable Bond Framework 5 November 2020 The Republic of Chile’s Ministry of Finance published a new sustainable bond framework, with the support of the Inter-American Development Bank. The new framework expands the county’s existing Green Bond Framework, enabling the country to issue green, social or sustainable bonds..
RESEARCHCDSB: Implications of climate science for financial markets October 2020 The IPCC’s special report demonstrates that the risks for natural and human systems are significantly lower at 1.5 than 2°C of global warming. Limiting warming to 1.5°C means less extreme weather, lower sea-level rises and hundreds of millions less people exposed to climate-related risks. Luxembourg Green Exchange and Global Landscapes Forum: How can Green Bonds catalyse investments in biodiversity and sustainable land-use projects? October 2020 The Luxembourg Green Exchange (LGX) worked with the Global Landscapes Forum (GLF) to develop the following paper. The proposals in this paper will serve to inform: the necessary debates on sustainable biodiversity finance in the context of the Post 2020 Global Biodiversity Framework and related negotiations, which will occur between 2020 and 2021 under the Convention on Biological Diversity (CBD); and the resource mobilization efforts required to achieve the UN Decade on Ecosystem Restoration beginning in 2021.
MANAGEMENT NEWSAdvisory Council of the Green Bond Principles and Social Bond Principles Executive Committee 2020 - 2021 The role of the Advisory Council is to advise the Executive Committee, to increase its market awareness and outreach, and to enable further engagement with specific membership categories and observers. Members apply voluntarily and are selected for an annually renewable 1 year term. The selection is based on a balanced representation of GBP SBP Members and Observers, especially key market stakeholders.
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.