This month includes news from LuxSE, NSE, B3, MOEX 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
Climate Disclosure Advisory Group21 October 2020
SSE launched a new project to support exchanges in providing guidance to issuers on climate disclosure. The ‘Zero Draft’ brainstorming webinar will take place on Wednesday 21 October 2020 at 09:00 and 16:00 Geneva Time.
Disclosure of Climate-Related Financial Risk09 September 2020
In partnership with the Inter-American Development Bank (IDB), Financial Innovation Laboratory (LAB), Securities and Exchange Commission (CVM) and B3, SSE discussed the disclosure of climate-related financial risk to issuers and investors of thematic securities.
Advisory Group on Derivatives Exchanges02 October 2020
Earlier this year the SSE launched a new work-stream on the role of derivatives exchanges in promoting sustainable development. This project was born out of discussions with the World Federation of Exchanges (WFE) as well as demand from a number of derivative exchanges that have approached the SSE about this question in recent years, including CME which is now the Chair of the SSE Derivatives Markets Advisory Group.
SSE joins Climate and Sustainable Finance Week in Latin America28 September 2020
The first edition of the Climate and Sustainable Financing Week in Latin America and the Caribbean took place from September 21 to 25, 2020. The event arises from the prevailing need to dialogue on the financial, fiscal and economic mechanisms that will allow us to continue the transition to low-emission and climate-resilient development while achieving a transformative, fair and sustainable economic recovery from the COVID-19 pandemic.
STOCK EXCHANGE NEWS
LuxSE launches unique data hub for sustainable finance16 September 2020
The Luxembourg Stock Exchange (LuxSE) launched the LGX DataHub, a unique, centralised database of structured data on a vast range of sustainable securities. Built and managed by the sustainable finance team at LuxSE, the LGX DataHub addresses the complex data challenge that asset managers and investors are facing when building sustainable investment strategies or reporting on their investments.
This Declaration, a crucial step towards operationalising FC4S Lagos, conveys the commitment of the Lagos State Government and FC4S Lagos, as well as other key stakeholders, to advance green and sustainable finance in the Nigerian financial markets, in line with the United Nations 2030 Agenda for Sustainable Development and the Paris Agreement.
The Implementation Partners of the Nigerian Green Bond Market Development Programme (the Programme) – FMDQ Holdings PLC (FMDQ Group or FMDQ), Financial Sector Deepening (FSD) Africa and Climate Bonds Initiative (CBI) – are set to facilitate a stakeholder engagement session as part of the green financing capacity building efforts for market participants in the Nigerian financial market.
Long-Term Stock Exchange For Companies Building Lasting Impact For Stakeholders28 September 2020
“The idea was to tilt the playing field toward companies taking a long-term view and connect them to like-minded investors,” says Jean Rogers, the exchange’s chief resilience officer and the founder and former CEO of the Sustainability Accounting Standards Board (SASB).
Exchange in Focus: B3 Launch the S&P/B3 Brazil ESG Index
09 September 2020
S&P Dow Jones Indices and B3, the largest exchange in Latin America, today announced the debut of the S&P/B3 Brazil 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.
Exchange in Focus: A letter from MOEX on their ESG progress
07 October 2020
“At Moscow Exchange, we are paying keen attention to the growing importance of sustainability and the global trend of mitigating ESG risks. The approach of investors is shifting from screening out negatives and thus excluding companies from the investable universe to seeking positive, social, and environmental value-accretive drivers that help generate excess returns. We believe Moscow Exchange is a perfect institution to take up the challenge of integrating sustainability practices into operations in substantial and measurable ways and serve as a dissemination point for the market members.”
REGULATOR NEWS
Global regulatory body to harmonise ‘plethora’ of ESG standards
07 September 2020
The global umbrella human body for securities regulators is trying to harmonise the patchwork of principles governing just how companies disclose sustainability risks in a move that could be a game-changer for the fast-growing green finance sector.
European Union: ESG And Sustainable Finance - The Disclosure Regulation02 October 2020
Investment fund managers and their investment funds under management need to start preparing for the application of the Disclosure Regulation1 on 10 March 2021.
ESG INDICES AND PRODUCTS
India launched the Sustainable Finance Collaborative for promotion of sustainable finance26 August 2020
The Department of Economic Affairs, Ministry of Finance, Government of India and United Nations Development Programme (UNDP) India launched the Sustainable Finance Collaborative (SFC).
Germany Seizes on Demand for Green Debt With $7.7 Billion Debut2 September 2020
Germany racked up near-record demand for a bond sale in its debut green debt offering, grabbing nearly a tenth of the growing global market.
ESG index funds hit $250 billion as pandemic accelerates impact investing boom2 September 2020
Index funds investing in companies that rate highly on environmental, social and governance (ESG) factors have received a boost during Covid-19, with increased interest in stakeholder capitalism.
Cboe Global Markets to List New Cboe S&P 500® ESG Index Options27 August 2020
Cboe S&P 500 ESG Index options are designed to help market participants trade, hedge or gain exposure to U.S. equities meeting sustainability criteria.
The Luxembourg Stock Exchange celebrated Europe’s first Sovereign Sustainability Bond
14 September 2020
The Luxembourg Stock Exchange (LuxSE) celebrated today’s listing of Europe’s first sovereign sustainability bond issued by the Grand Duchy of Luxembourg, in the presence of Pierre Gramegna, Luxembourg Minister of Finance. The EUR 1.5 billion bond carries a AAA rating and is displayed on the Luxembourg Green Exchange (LGX).
BlackRock launches Europe’s first multi-asset ESG ETF range10 September 2020
BlackRock has launched a range of multi-asset ESG ETF portfolios, a first in Europe. The three-strong range is comprised of iShares ESG ETFs and provides access to a wider universe of stocks and bonds.
The S&P 500 ESG Index: Integrating Environmental, Social, and Governance Values 11 September 2020
The Index aligns investment objectives with environmental, social, and governance (ESG) values. It can serve as a benchmark as well as the basis for index-linked investment products.
China Merchants Bank Joins LGX With Its First Sustainability Bond07 October 2020
The Luxembourg Stock Exchange (LuxSE) and China Merchants Bank (CMB) today celebrated the display of CMB’s first Sustainability Bond on the exchange’s green platform, the Luxembourg Green Exchange (LGX).
S&P Dow Jones Indices Launches Sustainability Screened Versions of Flagship U.S. Equity Indices24 September 2020
S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, today announced the launch of Sustainability Screened versions of its widely tracked core U.S. equity indices.
RESEARCH
World Economic Forum: Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation22 September 2020
The core and expanded set of “Stakeholder Capitalism Metrics” and disclosures can be used by companies to align their mainstream reporting on performance against environmental, social and governance (ESG) indicators and track their contributions towards the SDGs on a consistent basis.
