(07 February 2019) The Toronto Stock Exchange (TSX), the twelfth largest market exchange in the world by market capitalization, signed a commitment to promote sustainability and transparency in its market, making it the newest member of the United Nations Sustainable Stock Exchanges (SSE) initiative.
TSX and its sister exchange the TSXV Venture Exchange (both members of the TMX Group) join 83 other exchanges globally that are committed to promoting the advancement of sustainability in capital markets. Collectively SSE Partner Exchanges list over 46,434 companies.
“TMX is committed to embracing progressive change across the markets we serve and above all, to providing clients with the solutions they need to succeed in today’s ever-evolving investment landscape,” said Lou Eccleston, Chief Executive Officer of TMX Group. “We are proud to join our international peers in the SSE initiative and to connect stakeholders across Canada’s world-class markets, including TSX and TSXV-listed companies and the investment community, with environmental, social and governance disclosure guidelines and valuable ongoing insights.”
Investors in Canada applauded TSX’s move to join the SSE.
“Globally, stock exchanges are uniquely placed to encourage sound reporting and improved ESG disclosure, contributing to enhanced corporate governance standards and long-term value. We applaud the TSX in taking this important next step of joining a global community of stock exchanges committed to creating more sustainable capital markets.” said Kevin Uebelein, CEO, Alberta Investment Management Corporation.
“To advance responsible investment, it’s vital that there should be collaboration among financial markets stakeholders. As a long-time supporter of the Sustainable Stock Exchanges initiative, we welcome TSX’s decision to become a Partner Exchange.” said Michelle de Cordova, Director, Corporate Engagement & Public Policy, NEI Investments.
James Davis, Chief Investment Officer, OPTrust, said, “As a member of the Sustainable Stock Exchanges Investor Working Group, we are delighted that the TMX Group has become a signatory to the SSE initiative. OPTrust has been vocal about the need for better disclosure of ESG information to drive more insightful investment decision making and risk management. Stock exchanges play a critical role in enhancing corporate transparency and advancing sustainable economic growth. The TMX Group making this commitment will lead to enhanced corporate disclosure in Canada which will benefit investors and their beneficiaries around the world.”
The SSE works with stock exchanges through research, consensus building and technical assistance to contribute to the achievement of the United Nations Sustainable Development Goals (SDGs) and to stimulate investment for a sustainable future. Stock exchanges around the world have partnered with the SSE to work towards a common objective of fostering financial markets that support the growth of sustainable and responsible business practices.
The Toronto Stock Exchange has been engaged in a number of ESG related activities for several years. Since 2014, TSX has offered issuers A Primer for Social and Environmental Disclosure. TMX Group has strategically targeted growth-oriented Clean Technology and Renewable Energy companies seeking a market to access North American and global capital. As of March 2018, TSX and TSX Venture Exchange were home to 90 of these companies with a total market cap of over C$40 billion. TMX Group has launched emissions markets for the Western Climate Initiative, the Regional Greenhouse Gas Initiative and the Alberta carbon market. These markets leverage TMX Groups recently acquired Trayport platform to provide customers with a sophisticated platform to access market liquidity. TMX Group is a member of the International Emissions Trading Association (IETA) and also a member of the World Federation of Exchanges Sustainability Working Group. A number of ESG indices track companies on the TSX, including: S&P/TSX 60 ESG, S&P/TSX 60 Fossil Fuel Free Carbon Efficient Index, S&P/TSX 60 Fossil Fuel Free Index, and S&P/TSX Renewable Energy and Clean Technology Index.
About the SSE
The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.