September monthly news highlights

30 September 2019

This month includes news from NYSE, WFE, BVP, FMA, EBA, SET, EGX, B3, Nasdaq, SZSE, ESMA 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

Enel and SET join the SSE Official Supporters programme In October Enel and SET joined the SSE's Official Supporters programme. See the full list of Official Supporters here. On the occasion of its 10 year anniversary, the SSE launched a new chapter to ensure its ability to continue to meet the needs of its growing membership for the years to come. In asking partner exchanges and other key stakeholders to become an SSE Official Supporter, by contributing a voluntary donation annually, the SSE will be able to provide exchanges and other key capital market stakeholders the technical assistance, tools and expertise required to meet their sustainability objectives. “How Stock Exchanges Can Grow Green Finance” now available in French, translated by Euronext 25 October 2019 SSE’s Publication “How Stock Exchanges Can Grow Green Finance”, representing an action plan for stock exchanges, has been translated into French. The credit for the translation goes to Euronext, partner exchange of the SSE since 2015. "It is our responsibility to ensure that investors have the right tools to make informed decisions aligned with their values," says CEO of Euronext in the new Forward to the French edition. Luxembourg Stock Exchange Guide to ESG reporting 14 October 2019 Continuing its efforts to promote transparency in its market, the Luxembourg Stock Exchange (LuxSE), a member of the SSE initiative since 2016 and a leading exchange in the area of green bonds, has published a new set of guidelines for reporting ESG information to investors. The “LuxSE Guide to ESG Reporting” serves as a compass for users when identifying ESG activities and defining an ESG strategy. The guide also covers the process for data collection and processing and offers advice for establishing the most suitable reporting format, communication channels and reporting period. You can access the guide here.

STOCK EXCHANGE NEWS

SSE Exchange in Focus: BVP Sustainable Finance Panel September 2019 The Panama Stock Exchange (BVP) held its XX Investor Forum, an annual event aimed at sharing innovations in the financial market of Panamá and its region. Sustainability was at the center of this year’s edition. The Forum traditionally attracts many participants, with a record of 700 for this year. SSE Exchange in Focus: Egyptian FRA requires board women representation September 2019 Dr. Mohamed Omran, Chairman of the Financial Regulatory Authority (FRA), has announced that amendments to the listing rules in the Egyptian Exchange have been proposed to ensure women’s representation on the governing board of companies. SSE Exchange in Focus: Costa Rica Stock Exchange international release green award  September 2019 The National Stock Exchange of Costa Rica (BNV) received the “Green Award”, a recognition for outstanding use of renewable energy. The Stock Exchange is the first in Central America to receive this recognition, representing one more effort that Costa Rica makes to promote sustainable practices in companies. EGX chairman heads the 4th Meeting of EGX Sustainability Committee  23 October 2019 The Chairman issued a decision in May to restructure EGX Sustainability Advisory Committee to enhance and activate its role in the formulation of the policies that contribute to strengthen the sustainability processes.The meeting confirms that EGX is keen to enhance and strengthen the sustainability processes, beginning from the stock market through to the listed companies and the member firms, for its importance in supporting sustainable development efforts for the national economy. Nigerian Stock Exchange releases its 2018 Sustainability Report  18 October 2019 The report is a detailed and transparent compilation of the progress on the NSE’s sustainability commitments and targets which were developed when the NSE commenced its sustainability journey with the launch of its Corporate Sustainability and Responsibility (CSR) strategy in 2013. Stock Exchange of Thailand announced 98 listed companies with outstanding ESG performance, Thailand Sustainability Investment list 17 October 2019 Up from 51 firms when it was first launched in 2015, the increase reflects Thai listed companies’ progress in integrating sustainable development into business practices. Borsa İstanbul selected as the responsible institution to coordinate efforts for sustainable investment flows 16 October 2019 Borsa İstanbul was selected as the responsible institution to coordinate efforts for encouraging companies to tap more into sustainable investment flows.  Coordination Council for the Improvement of Investment Environment in Turkey (YOIKK) met on August 8, 2019. In accordance with the YOIKK Action Plan, Borsa İstanbul will work with regulatory institutions, NGOs, sector organizations and other stakeholders on raising awareness, creating incentives and improving regulatory environment among other topics. London Stock Exchange launches Green Economy Mark and Sustainable Bond Market  11 October 2019 The LSE announced the launch of two initiatives supporting sustainable finance on its markets. The Green Economy Mark recognises listed companies with 50% or more of revenues from environmental solutions, while the Sustainable Bond Market (SBM) incorporates new Sustainability, Social and Issuer-Level Segments. The Nigerian Stock Exchange and the Luxembourg Stock Exchange Sign MoU to Expand the Green Bond Markets 09 October 2019 The announcement was made at the signing ceremony led by NSE CEO, Oscar N. Onyema OON and LuxSE CEO, Robert Scharfe, which took place during the annual meeting of the World Federation of Exchanges in Singapore on Wednesday, 9 October.  The MoU further establishes an agreement for the two exchanges to collaborate with a view to sharing best practises and organising joint initiatives in their respective markets. Qatar Stock Exchange promotes Sustainability and ESG Disclosure among listed companies  07 October 2019 Qatar Stock Exchange, in cooperation with MSCI, held a senior level sustainability and ESG engagement session, titled MSCI Qatar ESG & Climate Change Forum in Qatar, with the aim to promote the business case for ESG and sustainability, outline QSE’s sustainability action plan to attract responsible investors, provide an overview of global investor assessment approaches to ESG, and serve as the soft launch for the QSE Sustainability and ESG Dashboard.

REGULATOR NEWS

Japan Financial Services Agency (FSA) selected as a member of Advisory Council for Green Bond Principles and Social Bond Principles 21 October 2019 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. The Advisory Council consists of 40 representatives from GBP/SBP Members and Observers. UK Financial Conduct Authority announced future work on Climate Change and Green Finance  16 October 2019 The FCA has today published a feedback statement setting out its proposals to improve climate change disclosures by issuers and information to consumers on green financial products and services. The Statement identifies a number of priorities, which will provide a foundation for the FCAs future work on climate change and green finance. These include issuers climate change disclosures, regulated firms integration of climate change risk and opportunities into their decision-making and consumers access to green financial products and services. Read the statement here. ASEAN Capital Markets Regulators Reiterate Strong Path Towards Sustainable Capital Markets 03 October 2019 The 31st ASEAN Capital Markets Forum (ACMF) Meeting in Phuket discussed the progress of ACMF initiatives on sustainability, connectivity and resilience. The initiative on developing a Roadmap for ASEAN Sustainable Capital Markets (Roadmap) was endorsed by the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) in April 2019. European Securities and Markets Authority (ESMA) publishes its 2020 Work Programme  1 October 2019 The key issue facing ESMA in 2020 is the implementation of its new mandates, and enhanced role, in areas such as direct supervision, supervisory convergence, investor protection, relations with third countries, sustainability and technological innovation. The full programme can be accessed here.

 

ESG INDICES AND PRODUCTS

BIST SUSTAINABILITY INDEX assessment completed  25 October 2019 Annual company assessments of the BIST Borsa Istanbul Sustainability Index have been completed. You can access the full list here. Click here for more information about the index Eurex expands pioneering role in sustainable investing 21 October 2019 The derivatives exchange Eurex added the first exchange-traded ESG options on a European benchmark to its product range. “As market feedback on our sustainable derivatives is very positive, we will continuously expand our product range closely aligned to the needs of our clients,” said Michael Peters, Member of the Eurex Executive Board. Eurex will further complement its STOXX Select products with futures and options that capture the performance of European companies with high dividend payments, low volatility and a relatively high ESG score. Solactive releases new issuer- level Screened green bond index and partners with Lyxor for the launch of a new Green Bond ETF 11 October 2019 Back in 2014, when Solactive established its first Green Bond Index, only 14 bonds were eligible for inclusion. Today, it includes 319 bonds (as at 02/10/2019). This index now also serves as the basis of Solactive’ s first ESG-screened green bond Index – Solactive Green ESG Bond EUR USD IG TR Index.

MANAGEMENT NEWS

The World Federation of Exchanges elects four board members 09 October 2019 At the 59th General Assembly in Singapore, the World Federation of Exchanges elected four Directors of the Board for a 3 year term, as follows: Mr. Greg Wojciechowski, President & CEO, Bermuda Stock Exchange - Director, Americas region; Mr Juan Pablo Cordoba, CEO, Bolsa de Valores de Colombia - Director, Americas region; Mr Jiwon Jung, Chairman & CEO, Korea Exchange - Director, Asia-Pacific region; Mr Akira Kiyota, Group CEO, Japan Exchange Group- Director, Asia- Pacific region. Japan Exchange Group appoints Director and Executive Officers  1 October 2019 The Japan Exchange Group (JPX) has appointed a new Director and Executive Officers, effective on October 1, 2019. For the Japan Exchange Group (JPX) the new Executive Officer is Takamichi Hamada. For the Tokyo Commodity Exchange, the Representative Executive Officer is Hiromi Yamaji and the Senior Executive Officer is Hiroyasu Ichimoto. The Japan Commodity Clearing House has welcomed its new Director, Mr. Takehiro Hosomura.

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.