The UN Sustainable Stock Exchange Initiative (SSE) welcomes The Nairobi Securities Exchange (NSE) as a new member of the SSE derivatives network.
The NSE has made a voluntary commitment to become a member of the SSE derivatives exchanges network to solidify its commitment to transparency and sustainability of financial markets. The SSE’s newest member joins a network of now 13 derivative exchanges around the world that are committed to promoting sustainable development.
The establishment of this network of derivatives market operators follows the 2021 publication of the SSE, together with the World Federation of Exchanges (WFE) which provides an action menu on How derivatives exchanges can promote sustainable development and recognizes the importance of aligning all aspects of financial markets with more sustainable outcomes.
Commenting on NSE’s new commitment, Mr. Geoffrey Odundo, NSE Chief Executive noted. “The NSE made a commitment to support a sustainable economy through undertaking various strategic interventions. Our Derivatives Market is nascent and steadily growing, by joining the SSE Derivatives network we hope to participate in multistakeholder dialogue to build consensus on sustainable finance in derivatives markets and meet the growing demand for new sustainability aligned derivatives products across all asset classes. We are keen on introducing commodity derivatives that specifically align with sustainability objectives, such as those supporting the transition to a lowcarbon economy.”
The NSE has put in place a number of sustainable initiatives with the most recent being the launch of the NSE's Environmental, Social and Governance (ESG) Guidance manual that will help companies navigate, comply with and stay ahead of regulations that require disclosure of ESG information. Consistent application of these guidelines will help improve the capital markets in Kenya by providing information that investors are now demanding to facilitate decision-making and capital allocation.
The SSE will expand its existing exchange database to incorporate what derivatives exchanges are doing to advance the sustainability agenda. For more information about the SSE derivatives network here.
Derivatives exchanges partner with the UN on sustainability
The SSE was established by the UN Secretary General just over a decade ago and has grown from its original five founding members to over one hundred exchanges. Since its founding, the SSE has worked with stock exchanges, securities regulators and other equity market actors to identify a range of opportunities for exchanges to take action in support of sustainable development goals. The creation of the derivatives network recognizes the importance of aligning all aspects of financial markets with more sustainable outcomes and the next step in the SSE’s evolution.
