Partner Exchange commitments announced at the 2014 Sustainable Stock Exchanges Global Dialogue
In preparation for the 2014 SSE Global Dialogue, the Partner Exchanges have committed to take specific actions over the next 24 months in advance of the 2016 SSE Global Dialogue. These commitments are indicated below:
- Bombay Stock Exchange
- Borsa Istanbul
- Colombian Stock Exchange
- Deutche Börse
- Egyptian Stock Exchange
- Jamaica Stock Exchange
- Johannesburg Stock Exchange
- Lima Stock Exchange
- London Stock Exchange
- Mexican Stock Exchange
- Nigerian Stock Exchange
- The Stock Exchange of Thailand
- Warsaw Stock Exchange
BM&FBOVESPA’s sustainability initiatives are all aligned with the Sustainability Policy that was approved in 2013 by the Board of Directors, in line with the company’s strategic principles, and seek to formalize and orientate guidelines for activity regarding the subject. The Policy is structured into four Pillars: Market, Environmental, Social and Corporate Governance. The principal activity in 2015 and 2016 will be the quest to insert sustainability into the mainstream through initiatives that are more in depth, especially with capital market regulators and strategic publics such as brokerage houses.
Since the creation in 2010 of the Press and Sustainability Department, reporting directly to the company’s CEO, BM&FBOVESPA has been working with a roadmap that organizes the main sustainability actions looking at a historical and evolutionary line. Click here to see BM&FBOVESPA’s sustainability roadmap.
The Bombay Stock Exchange (BSE) commits to continuing its efforts to integrate sustainability into capital markets. In collaboration with the Global Reporting Initiative, UN Environment Programme, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), and Infrastructure Leasing & Financial Services (IL&FS), BSE plans to organize workshops and webinars to help investors incorporate sustainability factors into their investment decision-making. Additionally, using its existing sustainability indices, BSE will continue to work to increase investor awareness for responsible investment in India over the coming years. BSE will also participate in the Confederation of Indian Industry’s committee for encouraging corporate integrated reporting in India. BSE will provide guidance and assistance to interested companies on integrated thinking, sustainable business portfolio, value innovation, and integrated reporting. BSE has also signed a Memorandum of Understanding with CDP India to jointly conduct workshops for creating awareness about filing sustainability data with CDP. Lastly, through its partnership with the Indian Institute of Corporate Affairs, BSE plans to continue to work collaboratively in the areas of corporate sustainability and investor education, among others..
In addition to responsibly managing its market and internal operations, Borsa İstanbul acknowledges its role in increasing awareness throughout the corporate and investment communities on environmental, social, and governance issues and in providing the expertise and advice necessary to successfully tackle these challenges. Borsa İstanbul will publicize the sustainability-related activities of its members and listed companies on its website. It will publish the “Handbook for Sustainability Guidance” for companies whose capital markets instruments are or may potentially be listed on Borsa İstanbul. A sustainability index comprising the companies traded on Borsa İstanbul that incorporate sustainability criteria into their investment processes and activities is planned to be launched in October 2014. For the upcoming period, Borsa İstanbul is planning to carry out all activities aimed at increasing environmental and social consciousness and improving corporate governance under a single program and to integrate, where applicable, the suggestions resulting from such activities into the decision-making processes and operations of Borsa İstanbul.
In 2014-16, the Colombian Securities Exchange is committed to increasing awareness of responsible investment among key players in the Colombian market, specifically through in-person forums, dissemination of its Guides to Responsible Investment, and supporting the development of the Colombian chapter of the Latin Forum for Sustainable & Responsible Investment (Latin SIF). Additionally, it will contribute technical know-how to its in-house fund Inversor in its selection of optimal social investments.
Deutsche Börse is committed to further promote sustainable global capital markets by proceeding with its transparency-enhancing initiatives (e.g. expansion of sustainability index offering, review of voluntary ESG Best Practice Guide, free of charge ESG data/information offering on investors` portal (www.boerse-frankfurt.de)) continuously improving its own sustainability performance and disclosure to serve by example, investing in sustainability-related market education and by promoting international best practice. Therefore, Deutsche Börse is making use of its neutral dialogue platform to engage with stakeholders and foster the dialogue amongst market participants with the overall objective to facilitate a corporate disclosure that allows for an accurate assessment of a company’s ability to create and sustain value and thus enable informed investment decisions.
EGX is making efforts in promoting and raising awareness of sustainability-related issues in the stock market; it plans to launch a sustainability-related national dialogue that convenes policy makers, listed companies, investors, and regulators in 2015.
Jamaica Stock Exchange (JSE) is making an effort in promoting and raising awareness of sustainability-related issues in the stock market. JSE will participate with the Private Sector Organization of Jamaica to create a Corporate Governance Index, slated to be launched within the first half of 2015. It is also planning within 2015 to have a web-based investor education programme aimed at training more investors and potential investors about the market.
The Johannesburg Stock Exchange is committed to remaining an active participant in the debate around sustainable and responsible business practices, both globally and in South Africa, and will continue to work with issuers, investors, regulators and other key stakeholders to promote ESG disclosure in 2015 through a number of activities. JSE will maintain the strong regulatory framework that its listed companies are subject to, while monitoring and enforcing compliance as necessary. It will evolve the Social Responsible Investment (SRI) Index in line with its strategy to implement an expanded ESG offering. Announcements regarding these developments are expected by the end November 2014. The exchange will host workshops with issuers regarding changes to disclosure indicators and data collection processes, as well as engaging the investor community regarding the above processes and related service offerings. JSE will also facilitate the issuer-investor interface through events, such as topical seminars and the annual ESG Investor Briefing showcasing selected 2014 SRI Index constituents. In addition to the externally focused efforts outlined above, JSE will continue to implement and manage elements of its internal sustainability strategy considering the impacts, risks and opportunities of its own activities, and produce an annual integrated report to reflect on its progress.
The Lima Stock Exchange (Bolsa de Valores de Lima – BVL) is committed to promote sustainable business practices among its listed companies and key players in the Peruvian market. Our aim is to encourage responsible long-term approaches to investment and will do it through the following activities: (i) dedicate a panel of an annual event organized by us to talk about ESG issues, (ii) encourage the listed companies to take part of the BVL Good Corporate Governance Index principles and (iii) lead, along with other Peruvian representative institutions, an initiative called Responsible Investment Program (PIR) which is a long-term program to articulate and empowers stakeholders to promote responsible investment practices and climate financing in Peru.
London Stock Exchange Group views its role at the heart of global financial markets as providing stable and efficient markets that enable business activity, efficient capital raising, investment and job creation. This year, LSE is further developing its corporate responsibility strategy through an approach based on four pillars closely tied with how it operates as a business: its markets, services, people and community. One of the key ways it encourages best practice corporate reporting is through FTSE, which builds on the original and pioneering work of the FTSE4Good Index Series. Based on academic evidence that the FTSE4Good Indices have contributed to improved ESG disclosure and practice globally, LSE plans to develop a variety of new services: (i) FTSE ESG (Environmental, Social and Governance) Ratings, which will cover over 3,000 stocks globally; (ii) the FTSE LCE (Low Carbon Economy) industrial classification system that will enable investors to measure and model their exposure to this industrial transition; and (iii) LSE will work with other exchanges around the world to help them to create suitable ESG indices and data for their markets.
In the interest of promoting corporate sustainability in its securities market during 2015-16, the Mexican Stock Exchange commits to doing a feasibility analysis on including material sustainability information on social and environmental topics in issuers’ annual reports as an ongoing listing requirement. Said analysis will be carried out in conjunction with respective market authorities and issuers.
NASDAQ OMX is focusing its current efforts on three distinct initiatives. First and foremost, the exchange is leveraging its position as an indexer and data provider to create new ESG- or sustainability-themed financial products. In addition to diversifying the array of investment choices for current investors, NASDAQ believes that the market for these products will continue to grow. The exchange is currently engaged in a stakeholder consultation on what investors want, so its offering may be sufficiently differentiated and attractive. Second, the exchange will continue to leverage its stewardship of the World Federation of Exchanges Sustainability Working Group and its participation in the UN Sustainable Stock Exchanges initiative to drive global market consensus on the value, quality, and availability of ESG data. Finally, NASDAQ OMX will host sustainability summits, learning events, and market bell ceremonies at its premiere MarketSite event space in Times Square, New York. This has proven to be an effective platform for corporate engagement, research dissemination, and media awareness.
The Nigerian Stock Exchange (NSE) is in the process of transforming and diversifying its business in accordance with established global best practice. As part of this process, NSE is increasing its commitment to encouraging responsible investments and taking a leading role in creating a more sustainable and inclusive capital market. As such, it will finalize a strategic roadmap highlighting key initiatives that will stimulate the appropriate application of relevant sustainability imperatives in the Nigerian capital market. This process will be implemented in phases and it will include a high-level engagement process with listed companies, investors and capital market community; including a current state analysis of listed companies’ sustainability practices. As a subsequent step, NSE plans to develop Sustainability Reporting Guidelines and host reporting and disclosure training and certification for stakeholders. The NSE will also launch a Corporate Governance Rating System (CGRS) on 3 November 2014. The CGRS is a framework designed to evaluate companies based on the quality of their corporate integrity; corporate compliance; understanding of fiduciary responsibilities by their directors and their corporate reputation. It will reflect the extent to which a company’s corporate governance practices and policies serve the interests of investors, shareholders and other stakeholders. This and subsequent rankings will feed into two key projects, namely the Premium Board and a tradable Corporate Governance Index.
ICE/NYSE will continue to help its issuer constituents in their own sustainability efforts by celebrating their good work and convening peers to discuss successful approaches and common challenges in the field. As the nexus of the world’s largest companies, ICE/NYSE is uniquely positioned to convene thought-leadership events that promote sustainability. Furthermore, in response to emerging market trends, it will also launch a new sustainability-related product.
Following the Sustainability Development Framework approved by the Board of Governors in August 2014, SET will develop a sustainability roadmap in 2015 and implement related strategic plans afterwards. Starting in 2014, SET has committed to developing its own sustainability report in accordance with the GRI G4 principles. SET is also actively developing Thailand’s first ESG index. It will also continue to instill sustainability into the DNA of its employees to advance the day-to-day sustainability efforts of the exchange. Likewise, SET will continue to encourage issuers to enter the Dow Jones Sustainability Index and provide companies and investors with educational tools to improve sustainability practices. This includes free-of-charge seminars, workshops, training, publications, as well as consulting and coaching services for listed companies on sustainability development and ESG performance disclosure.
Warsaw Stock Exchange will create a Sustainability Guide for members of the Supervisory Boards of the companies listed in Poland in order to explain the concept of sustainability and improve their awareness of Corporate Social Responsibility (CSR) and its meaning for the business strategy. It will support sustainable and responsible investing in Poland by promoting the adoption of ESG criteria by investors. Additionally, the exchange will further develop the WSE’s CSR Index – the RESPECT Index – by raising the number of companies participating, increasing the interest of investors in the index, and aiming to turn it into a benchmark for sustainable and responsible investments. The exchange will also launch the RESPECT rating, which is a special offer for WSE listed companies who are not included in the RESPECT Index, but are interested in CSR certification.