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Glasgow, UK

Stock exchanges have an important opportunity to prepare their markets for the growing demand for climate-related information and to assist in mobilising the finance needed to transition to a net zero world. In all markets, stock exchanges find particular value in helping their issuers’ attract capital from international or domestic investors by promoting and enhancing climate-related disclosures. As investors and providers of finance increase integration and consideration of climate risks and impacts, and many commit to aligning their portfolios with net-zero emissions, it’s essential that companies provide relevant climate-related information. Stock exchanges can meet investor demands by promoting consistent and comparable reporting practices thereby helping to ensure the climate resiliency of their capital market system to ensure stability, transparency and long-term growth.

Stock exchanges also play a role in mobilising finance to support the transition to net zero. They do this through the provision of innovative markets, products and services that cater for a range of investor and issuer needs. As market operators, exchanges sit at a key intersection point within the economies in which they operate and act as valuable sources of information and education. Exchanges can improve market understanding and awareness of the risks of climate change and the need to actively embrace a net zero transition. 

Through assisting their home markets to become more climate resilient and better positioned to attract investment, the same business case applies for the exchange itself as a company in that: a) supporting global capital flow inwards to an exchange’s issuers also benefits the stock exchange and makes it an attractive listing venue; and b) the stock exchange will also want to be regarded as having an effective climate strategy to support its own access to capital. As such, we will discuss the key trends shaping this work being undertaken by stock exchanges, building on the SSE’s Model Guidance on climate disclosure, Action Plan for climate resilient markets and green finance guidance documents, providing real-world examples of how stock exchanges are tackling these important issues. 

 

This session took place on 3 Nov, 15:30-16:30

at the UNFCCC Global Innovation Hub pavilion (Blue Zone)