Geneva- The Sustainable Stock Exchanges (SSE) initiative has brought to a close the first round of consultations on a Model Guidance aimed to assist both exchanges and companies with Environmental, Social and Governance (ESG) reporting and related issues.

Currently only 11 stock exchanges of the 55 stock exchanges examined, who are in the World Federation of Exchanges, provide any guidance to their companies on ESG disclosure. The Model Guidance project seeks to close this gap between those exchanges providing guidance and those not. The project is being developed to assist stock exchanges with a sample text that they can use and adapt to their markets. It will be a complementary tool that companies and exchanges can use along side existing detailed guidance and frameworks such as those provided by CDSB, GRI, IIRC and SASB.

To develop the Model Guidance, the SSE has convened a special Advisory Group consisting of 56 members from 21 countries, made up of stock exchanges, regulators, standard setters, investors, listed companies, academia and issue experts. The Advisory Group is chaired by Mr. David Harris, Director of FTSE ESG, London Stock Exchange Group.

Advisory Group meeting in Geneva. From left to right: James Zhan, Director of Investment and Enterprise Division, UNCTAD; David Harris, Director, FTSE ESG, London Stock Exchange Group; and Julia Taeschner, Head of Corporate Responsibility Boards & Committees, Deutsche Börse.

A meeting held in Geneva on March 26 brought together approximately a third of the Advisory Group to discuss in person the direction and objective of the Model Guidance ‘zero draft’. This initial draft was also the subject of webinars and other interactive sessions with advisory group members.

The draft Model Guidance will be next released for comment in May and again in July and is expected to be finalized by September. For more information on this project, please contact [email protected].