Geneva, Tuesday, 29th June 2021 – The United Nations Sustainable Stock Exchanges (SSE) initiative today launches a new Action Plan to Make Markets Climate Resilient and a Model Guidance on Climate Disclosure. Both publications were conducted under the auspices of Mark Carney, UN Special Envoy for Climate Action and Finance, in collaboration with our Co-Chairs for this Advisory Group, London Stock Exchange Group (LSEG) and Johannesburg Stock Exchange.
The text in the publications was produced via consultations with a multi-stakeholder advisory group made up of 100 experts from 55 organisations across 23 countries.
“I commend the work that the Sustainable Stock Exchanges initiative, and its over 100 Partner Exchanges, have done over the past decade, putting in place a framework to help mainstream sustainable finance. I welcome this model guidance, updated to incorporate the latest approach on climate-related disclosure from the Task Force on Climate-related Financial Disclosure, as a key example of the role that exchanges can play in driving this change, and encourage exchanges worldwide to take it up.” - Mark Carney, Special Envoy on Climate Action and Finance United Nation
“Securing our future is a collective responsibility and requires all actors across regions, industries, regulators and the financial sector to do our bit. I sincerely thank the SSE, the London Stock Exchange Group and Mark Carney for helping exchanges play their part and I sincerely hope that exchanges will find much value in these reports.” - Dr. Leila Fourie Chief Executive Officer, Johannesburg Stock Exchange
“Stock exchanges play a central role between investors supplying capital and companies seeking it. From this position, they can help create the conditions to enable the scaling of investments into green industries and the financing of climate transition. Encouraging companies to adopt a reporting standard that is clear, comparable and comprehensive is essential in both meeting investors’ expectations and in preparing companies for the future. I applaud the UN SSE on the excellent progress made over the past 12 months since we established this coalition and for the efforts of the advisory group in producing this Model Guidance that exchanges around the world can implement quickly and easily. The onus is now on us as individual stock exchanges to adapt the guidance to meet country-specific rules, publish it, and then work with issuers so they understand and use it.” - David Schwimmer, Chief Executive Officer, London Stock Exchange Group.
“Sitting at the intersection between issuers, investors, regulators and standard setters, stock exchanges can play a unique role in helping their markets to adopt and implement high-quality climate reporting practices. This is more than providing guidance, it is about taking action to lead by example, influence market participants and ultimately assist the market with a historic transformation.” - James Zhan, Chair, UN SSE and Director of Investment, UNCTAD.
Action Plan to Make Markets Climate Resilient: How stock exchanges can integrate the TCFD recommendations
The Action Plan helps exchanges lead a transition to more climate-resilient markets using the various tools available to them. Stock exchanges can help their market to mitigate risks associated with climate change, access growing opportunities and help align climate-related disclosures to global standards and best practices to ensure their markets are both efficient and resilient.
The Action Plan is a companion document to the SSE’s Model Guidance on Climate Disclosure, and exchanges are encouraged to use them together as they work on making their markets more climate resilient.
Model Guidance on Climate Disclosure: A template for stock exchanges to guide issuers on TCFD implementation
Stock exchanges are uniquely positioned to advance climate disclosure through market guidance. They can have a special role in supporting consistency and standardization of information that enables both local and global progress in climate reporting and use of climate-related data. Stock exchanges have the infrastructure, networks and experience to contribute to addressing climate change via capital markets. By working with and learning from their peers, they can be essential in achieving greater climate-resiliency of markets.
In order to assist stock exchanges in their efforts to guide issuers on climate-related disclosure, this guidance document includes two parts. First, an introduction on how and why to use this guidance for stock exchanges; and secondly, a template guide and diagnostic checklist that stock exchanges can utilize to develop guidance on climate-related disclosure for issuers.
Know more about the SSE Climate Action workstream here.
