The Private Sector Urges Stock Exchanges to take Concrete Action to Enhance ESG Disclosure Across Global Markets

(London, 12 October 2015) – This morning, 64 stock exchanges received letters signed by investors and companies. The letters have one request:  all stock exchanges globally issue voluntary reporting guidance for companies in their market that includes environmental, social and governance (ESG) considerations.

This request addresses an information gap, as only 25 percent of WFE stock exchanges currently provide written guidance to companies on reporting ESG information. In order to effectively evaluate listed companies, investors need access to all material information, which includes ESG factors. Guidance for companies on how reporting may address ESG considerations, as well as highlighting these issues in existing definitions of what constitutes material information, is therefore an important step towards creating a stable financial system that advances sustainable economic growth.

Led by Allianz Global Investors, and supported by the Principles for Responsible Investment and United Nations Global Compact, the letters have been sent in advance of the World Federation of Exchanges annual meeting, where exchanges will discuss their role in advancing sustainability. They commend exchanges that have an existing guidance or have publicly committed to putting one in place, or conversely, ask exchanges with no guidance to put one in place by the end of 2016; thereby voicing support for exchanges efforts to create more transparent and efficient capital markets that generate long-term value.

As Marissa Blankenship, Senior ESG Analyst from Allianz Global Investors reflected, “This campaign has struck a real chord with asset owners, managers and companies, with over 85 firms signing-up to our call for stock exchanges to issue voluntary ESG reporting guidance by the end of 2016. As an essential interface between issuers and investors, every stock exchange has the potential to be a driving force in the development of sustainable capital markets. Ahead of the World Federation of Stock Exchange’s Annual Meeting, this campaign is a timely reminder of the need for investors to be able to access consistent, comparable ESG information”.

These letters are part of a larger effort to ensure all markets provide guidance to companies and to further support exchanges in this effort. Last month the SSE released its Voluntary Model Reporting Guidance a globally consistent resource that exchanges can customize to create their own guidance for companies on reporting ESG information to investors. Eight SSE Partner Exchanges have already made commitments to creating their own guidance. For more information on this global campaign visit the SSE website.

For more information or to get involved please contact the SSE Secretariat at info@sseinitiative.org.

About the Sustainable Stock Exchanges (SSE) Initiative

The SSE initiative is a peer-to-peer learning platform for exploring how exchanges—in collaboration with investors, regulators, and companies—can encourage sustainable investment and enhance corporate transparency, and ultimately performance, on ESG (environmental, social and corporate governance) issues. The SSE is convened by the UN Conference on Trade and Development (UNCTAD), the UN Global Compact, the UN Environment Program’s Finance Initiative (UNEP FI), and the Principles for Responsible Investment (PRI).  All interested parties are encouraged to visit the SSE website (www.SSEinitiative.org) for more information on specific exchanges’ sustainability efforts and further opportunities to advance the integration of sustainability within capital markets.