Target 12.6*: Encourage companies, especially large and trans-national companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
“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
All stock exchanges that are members of the SSE or the World Federation of Exchanges (WFE) providing listed companies with guidance on sustainability reporting.
Exchanges Not Providing Guidance Documents
In September 2015 when the SSE launched its Model Guidance for 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.
“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
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.
*Like many UN initiatives, the SSE looks to the SDGs to help focus its activities. The SDGs cover a broad range of environmental and social targets categorized into 17 goals and 169 targets. Of these, the SSE focuses on five SDG targets that are particularly relevant for stock exchanges.