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Stock Exchange Sustainability Policies Lag Behind Investor Needs And Regulations

Date: 17 March 2016

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11 pages

Executive Summary

Since 2012, stock exchanges around the world have embarked on initiatives to spur sustainability disclosures from listed firms. A growing number of exchanges want to influence market participant behaviour and have improved their market infrastructure to support sustainability data. This report helps senior executives, responsible for the disclosure of material financial information and sustainability data, to navigate and anticipate changes in the evolving landscape. The report examines recent announcements made by stock exchanges globally on corporate governance and sustainability disclosures and includes a summary of the current policies at the top 20 largest exchanges by market capitalization. Verdantix analysis finds that while stock exchanges in the Asia-Pacific region are stepping up to implement tougher sustainability policies, investor demands and national regulations will remain the key driving forces that shape how sustainability disclosures are conducted among capital markets.

TABLE OF CONTENTS

Stock Exchange Sustainability Policies Lag Behind Investor Needs And Regulations
Stock Exchanges Play A Supportive Role Focused On Awareness-Building Activities
Achieving A Consistent Baseline Globally For Stock Exchange Sustainability Disclosures Is The Current Focus
Five Asian Stock Exchanges Push For Tougher Sustainability Disclosure Rules Than Their Counterparts In Other Regions
Sustainability Leaders Should Focus On Financial Regulators And Investor Demands Not Stock Exchange Announcements

TABLE OF FIGURES

Figure 1. Number Of SSE Initiative Partner Exchange Members From 2012 To 2015
Figure 2. Timeline Of Stock Exchange Sustainability Announcements Since Mid-2015
Figure 3. Sustainability Policies Among The Top 20 Global Stock Exchanges By Market Capitalization

ORGANISATIONS MENTIONED

Allianz Global Investors, Australian Securities Exchange, Aviva, Bahrain Bourse, BlackRock, Bolsas y Mercados Españoles, Bombay Stock Exchange, Borsa Istanbul, Bucharest Stock Exchange, Bursa Malaysia, Calvert Investments, Canada Pension Plan Investment Board, CDP, Ceres Investor Network for Climate Risk (INCR), The Climate Bonds Initiative, CPA, Deutsche Asset Management, Deutsche Bank, Deutsche Börse, Euronext, The European Bank for Reconstruction and Development, European Commission, European Union (EU), The Financial Reporting Council, FTSE Russell, GRI, The Generation Foundation, Generation Investment Management, Hong Kong Stock Exchange, IFC, IIRC, Impax Asset Management, Institute of Chartered Accountants in England and Wales (ICAEW), International Organization of Securities Commission (IOSCO), Italian Stock Exchange, Japan Exchange Group, Johannesburg Stock Exchange, JP Morgan, KKR, Korea Exchange, London Stock Exchange, NASDAQ Nordic Exchange, NASDAQ OMX US, National Stock Exchange of India, Natural Resource Defense Council, New York Stock Exchange (NYSE), New Zealand Stock Exchange, S&P Dow Jones Indices, Santiago Exchange, SASB, The Securities and Exchange Board of India (SEBI), Shanghai Stock Exchange, Shenzhen Stock Exchange, Singapore Exchange (SGX), SIX Swiss Exchange, Standard & Poor’s Financial Services (S&P), State Street, STOXX Limited, The Swedish Corporate Governance Board, Taiwan Stock Exchange Corporation (TWSE), TIAA-CREF, TMX Group, Toronto Stock Exchange, UN Conference on Trade and Development, UN Environmental Programme (UNEP) Finance Initiative, UN Global Compact, UN Principles in Responsible Investment, UN Sustainable Stock Exchanges (SSE), US Securities and Exchange Commission (SEC), Warsaw Stock Exchange, World Bank, The World Business Council for Sustainable Development (WBCSD), World Federation of Exchanges (WFE)