The world must get to a state of net zero emissions as soon as possible (and by 2050 at the absolute latest) in order to limit the worst effects of climate change.
The Goal
Stock exchanges are making 'net zero commitments' to help their markets transition to net zero greenhouse gas emissions. Through their functions as educators, product innovators and information gateways for the market, exchanges have an important role to play in the global transition to net zero emissions. UN SSE provides guidance, capacity building and technical assistance to support exchanges in their efforts to meet their net zero commitments.
Net Zero Exchange Group
Net zero is defined by the IPCC, the United Nations body for assessing the science related to climate change, as: “When anthropogenic CO2 emissions are balanced globally by anthropogenic CO2 removals over a specified period.” Simply put, at a global level the world needs to balance the amount of emissions put into the atmosphere with the amount taken out.
Since COP26 in 2021, there have been many ‘net zero commitments’ made across the financial industry, including by stock exchanges. The UN SSE is the secretariat for the Net Zero Exchange Group whose members are exchanges that have made a net zero commitment. The group is part of the broader Net Zero Financial Service Providers Alliance and sits under the overall umbrella of the Glasgow Financial Alliance for Net Zero. This webpage tracks the work of the Net Zero Exchange Group, its members and their progress on their net zero journeys. Note that all members are currently in their first year of reporting, so only "year 1" targets need to be addressed in 2024.
Net Zero Exchange Group Member's Progress on Targets
| MARKET | STOCK EXCHANGE | JOINED | REPORTING SOURCE | 1.1.1 YEAR 1 TARGET: Exchanges should put appropriate governance structures in place to ensure accountability for and oversight of the development and execution of the NZFSPA commitments. TIMELINE: As soon as possible after joining the NZFSPA, but no longer than one year. | 1.1.2 YEAR 1 TARGET: Exchanges should ensure that relevant policies, procedures and training are implemented to support its efforts. TIMELINE: As soon as possible after joining the NZFSPA, but no longer than one year. | 1.2.1 YEAR 1 TARGET: Exchanges should publicly disclose their climate actions annually as part of a transition plan. TIMELINE: First disclosure as soon as possible after joining the NZFSPA, but at least within one year. Within two years, apply a broadly accepted climate disclosure instrument. | 1.2.2 YEAR 1 TARGET: Exchanges should measure and disclose their Scope1, 2 and (where material) 3 emissions annually. TIMELINE: Within one year after joining the NZFSPA. | 1.2.3 YEAR 1 TARGET: Exchanges should commit to Scope 1, 2 and (where material) 3 emission reductions for their own operations. TIMELINE: Interim science-based reduction targets across all operational emissions should beset within one year of joining the NZFSPA, for no later than 2030. | 2.3.2 YEAR 2 TARGET: Exchanges should work towards mandatory climate-related disclosure in their markets. TIMELINE: Within one year from joining the NZFSPA | 2.1.1 YEAR 2 TARGET: Exchanges should work to raise visibility for climate-themed products. TIMELINE: Within one year from joining the NZFSPA. Bond exchanges should pursue internationally or locally accepted instruments for listing of climate-themed bonds within three years from joining the NZFSPA. | 2.1.2 YEAR 2 TARGET: Exchanges should offer climate disclosure training at least annually TIMELINE: Within two years from joining the NZFSPA | 2.3.1 YEAR 2 TARGET: Exchanges should actively engage with local and global policy makers and standard setters to stay informed of and promote net zero aligned policies. TIMELINE: within 2 years | 2.3.3 YEAR 2 TARGET: Exchanges should proactively engage with market participants, including through market awareness programmes, to promote the adoption of net zero commitments and transition plans among market participants TIMELINE: Within 2 years | 2.2.1 YEAR 3 TARGET: Exchanges should work to raise visibility for climate-themed products TIMELINE: Within 3 years | 2.2.2 YEAR 3 TARGET - OPTIONAL: "Progressive Target" |
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| Mexico | Bolsa Mexicana de Valores | 23Q2 | ⬤ |
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| Germany | Deutsche Boerse | 23Q2 | ⬤ | ⬤ |
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| China | Hong Kong Exchanges and Clearing Limited | 23Q2 | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | |
| South Africa | Johannesburg Stock Exchange | 23Q2 | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ||||
| Luxembourg | Bourse de Luxembourg | 23Q2 | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | |
| United States | Cboe Global Markets, Inc. | 23Q2 | ⬤ | ⬤ |
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| Singapore | Singapore Exchange | 23Q2 | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | |
| United Kingdom | London Stock Exchange | 23Q2 | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ | ⬤ |
New Members
The following Members joined in Q4 2023 and are due to report for the first time in December 2024: Japan Exchange Group, Latinex, and Philippine Stock Exchange.
The following Members joined in Q2 2024 and are due to report for the first time in April 2025: Amman Stock Exchange, Bahrain Bourse, Muscat Stock Exchange, and Palestine Stock Exchange.
The following Members joined in Q4 2024 and are due to report for the first time in November 2025: Bursa Malaysia, Euronext, Kazakhstan Stock Exchange, Mercado Argentino de Valores, and Saudi Exchange.
How to Join
The NZFSPA Exchange Group is committed to leading the charge in the financial sector’s transition to net zero. By fostering a collaborative environment, providing transparent progress tracking, and aligning with global sustainability goals, we aim to create a powerful force for positive change. If your exchange would like to join us as we pave the way to a sustainable future, ensuring a thriving planet for generations to come, please take a look at the NZFSPA Commitment form
Contact the secretariat for the NZFSPA Exchange Group here.
Setting Net Zero Targets
"We urgently need every business, investor, city, state and region to walk the talk on their net zero promises." - Antonio Guterres, UN Secretary-General
The members of the NZFSPA Exchange have agreed upcon a Target Setting Framework, which serves as a common base for exchanges to set their own individual targets, tailored to their specific market circumstances.
The Framework provides a comprehensive roadmap for capital market infrastructure operators to align their own operations with the goals of the Paris Agreement, and assist their markets to address the climate crisis. Developed in collaboration with over 56 industry experts from 28 different organisations, the Framework guides exchanges to set ambitious and credible net zero targets, enabling them to contribute meaningfully to a sustainable future. The approved framework can be found here.
The Framework emphasises the important role exchanges can play in leading by example, providing climate-related market education and promoting a just transition. It also captures the need for continuous reporting on progress.
With the approval of the framework, the Exchange Group become partner of the Race to Zero. Find out more about the relationship here.
“We warmly welcome the Net Zero Financial Service Providers Exchange Group as an official partner of the Race to Zero, highlighting the pivotal role of stock exchanges in catalysing the transition to a sustainable future. This partnership harnesses the collective power of financial service providers committed to achieving net zero emissions, exemplifying the collaborative spirit essential to tackling the climate crisis and inspiring others to join the global movement towards a just transition to a net-zero resilient world." - Dr Mahmoud Mohieldin and Her Excellency Ms Razan Al Mubarak, UN Climate Change High-Level Champions
About the NZFSPA
Jointly organised by
The Net Zero Financial Service Provider Alliance (NZFSPA) is a group of companies committed to playing a critical part in the global effort to move towards net zero. Service providers are an essential part of finance sector action on climate change.
NZFSPA was established at the New York Climate Week in 2020 and has published its own 8-point net zero commitment, that all members need to sign:
Download the full form here.
NZFSPA is made up of four groups with a vital and connected role to play.
Auditors build trust and confidence in information through the assurance services they provide on company-prepared financial information.
Exchanges run and maintain critical infrastructures and networks connecting investors, issuers and regulators. They act as influencers, educators and information gateways.
Index providers give real-time information about market performance. This is a key input for passive investment products and active investment fund strategies.
Research and data providers develop the research and data needed by all links in the investment chain. They also engage with and educate their clients, corporate issuers, and others.
You can find a full list of members here
The wider Net Zero Universe
The NZFSPA is a pivotal component of the global net-zero movement.
As financial institutions play a critical role in financing the transition to a low-carbon economy, organisations within the NZFSPA are organising their efforts with the Glasgow Financial Alliance on Net Zero (GFANZ). By leveraging their collective expertise, they aim to lead by example, set benchmarks for sustainable finance and encourage other exchanges to follow suit. GFANZ members are also working closely with the UN-backed Race to Zero initiative.
About Net Zero
Put in simple terms, net zero means that the balance between the amount of greenhouse gases (GHGs) produced and removed from the atmosphere is zero; it looks at emissions overall. That means that while an absolute reduction in emissions is critical, the net zero concept allows for removing any unavoidable emissions. Removing GHGs could be via nature (e.g. trees take carbon dioxide from the atmosphere) or through new technology or changing industrial processes.
GHGs are a key driver of global warming and ensuring that the world reaches net zero GHG emissions is essential for tackling climate change. Over the past decade, global emissions have risen steadily. To have any hope of keeping the long term global temperature rise to 1.5°C we need to have halved emissions by 2030 and reached net zero by 2050. Doing this requires us to reduce emissions by about 7% per year. Business as usual is not an option.
The next decade is critical, which is why every country, sector and industry must work together to find ways to cut GHG emissions.
Resources
Policy Brief: The Net Zero Movement
2021
Get started with an overview of the net zero movement and learn about what net zero means. The Policy Brief: The Net Zero Movement can be found here.
Net Zero Target Setting Guidance for Exchanges
2023
Find out how exchanges best contribute to the net zero movement and how they set their net zero targets. The Net Zero Target Setting Guidance for Exchanges 2023 can be found here.
SSE Model Guidance on Climate Disclosure
The SSE published a tool for exchanges titled “Model Guidance on Climate Disclosure: A template for stock exchanges to guide issuers on TCFD implementation” to assist exchanges in guiding their market on how to disclose climate-related financial information. The template is oriented around the Financial Stability Board’s (FSB) Task Force for Climate-Related Disclosures (TCFD) recommendations, the current best practice for climate-related disclosure. Within this guidance the template is written in the voice of an exchange, providing text they may use when they guide their issuers, as well as ideas for strengthening their guidance by adapting it to their market’s circumstances.
For an editable version of the SSE Model Guidance on Climate Disclosure please contact the SSE team at [email protected].
NZFSPA 8-point Commitment Form
2021
Access the NZFSPA Commitment Form to become a member. Note that this needs to be signed by your organisation’s CEO and shared with the relevant secretariat. The Commitment Form can be found here.
Additional Materials offered by the UN SSE on how to get your market climate ready can be found here