More than one in ten market exchanges operate a sustainability programme focused mainly on education initiatives for issuers and investors, according to a new report.
The World Federation of Exchanges’ (WFE) second annual sustainability survey also found almost all those who responded believe they should keep a close watch on the sustainability of their listed companies, as well as take part in developing better environmental, social and governance (ESG) reporting metrics.
The number of exchanges that include ESG requirements as part of their reporting frameworks has increased from 30% in 2014 to 50% now.
Siobhan Cleary, head of research & public policy at the WFE, said: “The ESG agenda is continuing to converge more closely with financial markets, with high-profile initiatives such as Sustainable Stock Exchanges (SSE) and the Financial Stability Board’s Task Force on Climate-related Financial Disclosure.
“This confluence can also be seen clearly in our survey results, with 85% of respondents confirming that some form of ESG disclosure was required in their market.”
Nandini Sukumar, WFE’s chief executive officer, said: “What is particularly striking about these results is the mainstreaming of sustainability within exchanges.
“WFE exchanges are now actively engaged in promoting the long-term health and development of their markets, and recognise the important role they can play in financing a sustainable real economy.”
WFE’s full report is here.