SSE campaign to close the ESG guidance gap

“The UN’s Model Guidance and the collaborative efforts of investors… have the potential to trigger historic improvements in how global financial markets behave.” – Forbes 2015

The Goal
All stock exchanges that are members of the SSE or the World Federation of Exchanges (WFE) providing listed companies with guidance on sustainability reporting by end of 2016.
Progress

What Exchanges are Saying

“We intend to use the SSE Model Guidance as a basis for discussions with both investors and issuers in order to determine our own guidance, which we expect to produce by the end of the year.” – Mark Makepeace, Group Director, Information Services, London Stock Exchange Group

“The SSE Model Guidance is an essential first step in creating industry-wide change on sustainability reporting practices and performance, and the basis for the work the WFE Sustainability Working Group going forward.” – Evan Harvey (Nasdaq) & Corli Le Roux (Johannesburg Stock Exchange), chairs of the WFE Sustainability Working Group

“The creation of our own voluntary ESG reporting guidance for the companies listed on our market is another step forward in our commitment to sustainability and the promotion of ESG reporting. Although there are no formal obligations associated with our guidance, we encourage users to use it as a useful tool for integrating ESG issues into their reporting and in this way enrich their communication with investors, analysts and stakeholders.” –  Jorge Yzaguirre, Director of Equities and Derivities Markets, Bolsas y Mercados Españoles (BME)

“The SSE Model Guidance on reporting ESG information to investors provides a very helpful tool as it encourages exchanges to customize and balance their guidance to local conditions. This will be a useful starting point for Oslo Børs on its journey to best implement its own guidance by the end of 2016.” – Bente A. Landsnes, President & CEO, Oslo Børs

“As KASE plans to increase its integration into global capital markets, we recommend our listed companies to disclose ESG information as well as financial indicators. Our ESG Guide will be published on our website in due time.” – Natalya Khoroshevskaya, Acting Chairman, KASE Management Board

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Background

In September 2015 when the SSE launched its Model Guidancefor exchanges, less than one third of stock exchanges around the world were providing guidance to issuers on reporting environmental, social and governance (ESG) information. This gap in guidance on ESG reporting leads to incomplete corporate information, creating a challenge for investors seeking a comprehensive view of a company’s material issues. The purpose of the Model Guidance compiled by the SSE is to help exchanges address this need by providing a model, or template, that exchanges can use to develop their own, custom guidance.

Based on the SSE Model Guidance, the World Federation of Exchanges has created a set of recommendations to its member exchanges on how to implement their own sustainability policies. The WFE Guidance & Recommendations identifies material ESG metrics which exchanges can incorporate into disclosure guidance to companies listed on their market. The metrics lay out 34 key performance indicators that are built off of the SSE guidance.

See how you can help close the guidance gap. Email info@SSEinitiative.org for more information. 

Committed to Publishing a Guidance by the end of 2016

SSE Partner? Exchange Market Date Committed
1 Yes Bolsa de Comercio de Santiago Chile September 2015
2 Yes Nasdaq Copenhagen Denmark March 2016
3 Yes Egyptian Exchange Egypt September 2015
4 Yes Nasdaq Tallinn Estonia March 2016
5 Yes Nasdaq Helsinki Finland March 2016
6 Yes Nasdaq Iceland Iceland March 2016
7 Yes Borsa Italiana (London Stock Exchange Group) Italy September 2015
8 Yes Kazakhstan Stock Exchange Kazahkstan February 2016
9 Yes Nairobi Securities Exchange (NSE) Kenya March 2016
10 Yes Nasdaq Riga Latvia March 2016
11 Yes Nasdaq Vilnius Lithuania March 2016
12 Yes Bolsa Mexicana de Valores Mexico February 2016
13 Yes Bourse de Casablanca Morocco February 2016
14 Yes Nigerian Stock Exchange Nigeria September 2015
15 Yes Oslo Børs Norway February 2016
16 Yes Qatar Stock Exchange Qatar March 2016
17 Yes Bucharest Stock Exchange Romania September 2015
18 Yes Trop-X Seychelles April 2016
19 Yes Bolsas y Mercados Españoles Spain February 2016
20 Yes Nasdaq Stockholm Sweden March 2016
21 Yes London Stock Exchange (London Stock Exchange Group) UK September 2015
22 Yes Hanoi Stock Exchange Vietnam September 2015
23 Yes HoChiMinh Stock Exchange Vietnam September 2015

Already Published Guidance Documents

SSE Partner? Exchange Market Date Released Publication
1 No Australian Securities Exchange (ASX) Australia 2011 ESG Reporting Guide for Australian Companies
2 Yes BM&FBOVESPA S.A. Brazil Novo Valor Corporate Sustainability. How to begin, who to involve and what to prioritize
3 No TMX Group Inc. Canada 2014 A Primer for Environmental & Social Disclosure
4 No Shanghai Stock Exchange China 2008 Guidelines on Listed Companies’ Environmental Information Disclosure
5 No Shenzhen Stock Exchange China 2006 Shenzhen Stock Exchange Social Responsibility Instructions to Listed Companies
6 Yes Bolsa de Volores de Colombia Colombia 2014 Guía a la inversión responsable y sostenible
7 Yes Deutsche Börse AG Germany 2013 Communicating Sustainability: Seven recommendations for issuers
8 No Hong Kong Exchanges (HKEx) Hong Kong Environmental, Social and Governance Reporting Guide 
9 Yes BSE India Ltd India 2011 National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business
10 Yes National Stock Exchange of India India 2010 Corporate Governance: An Emerging Scenario
11 Yes Bursa Malaysia Malaysia 2006(Updated 2015) Sustainability Reporting Guide and Toolkits
12 No Singapore Exchange Singapore 2011 Guide to Sustainability Reporting for Listed Companies
13 Yes Johannesburg Stock Exchange (JSE) South Africa 2004(Updated 2014) SRI Index Background and Criteria
14 Yes Stock Exchange of Thailand (SET) Thailand Guidelines for the preparation of sustainability reports
15 Yes Borsa Istanbul Turkey 2015 Sustainability Directory for Companies

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