Sustainable Stock Exchanges: Improving ESG Standards Among Listed Companies
Sustainable Stock Exchanges: improvingESG standards among listed companiesIntroductionThis briefing reviews the increasing role that stock exchanges play in enhancing corporate transparencyand performance on sustainability issues. The analysis builds on research published by EIRIS last yearthat identified the direct impact(s) of stock exchanges in enhancing ESG disclosure. Set in the contextof recent developments and global trends, the briefing this year gives an insight into the indirectimpacts that stock exchanges have in promoting environmental, social and governance (ESG) issuesthrough their listing requirements and products.Executive summaryThere is a strong business case for stockexchanges to strengthen ESG disclosurerequirements. This can provide newbusiness opportunities and potentiallyincrease revenues, safeguard reputation,maximise competitive advantage andmitigate operational risks.A number of initiatives already exist topromote increased ESG disclosure. Stockexchanges have a major role to play inhelping responsible investors tomitigate investment risk.Stock exchanges have adopted apatchwork of sustainability approaches,including sustainability indices andspecialised products which can encouragegreater ESG disclosure.All exchanges in this report already havemandatory governance disclosurerequirements incorporated in their InitialPublic Offering (IPO) and ongoing listingrules, but the provision for broaderenvironmental and social requirementsis currently poor.Few exchanges have listing rules in placebeyond governance, suggesting that thereis much scope for embedding ESG factorsinto stock exchange IPO and ongoinglisting requirements.Stock exchanges can require companiesto include provisions for Annual GeneralMeeting (AGM) proxy voting andshareholder resolutions.The 2010 UN Sustainable StockExchanges event in China will focus onhow stock exchanges and key stakeholderscan improve ESG disclosure andperformance of listed companies, eitherthrough voluntary exchange-led initiativesor regulation.Recommendations for stock exchanges Incorporate mandatory ESG disclosurestandards (including comply or explainprovisions where relevant) into IPO andongoing listing rules in the same way thatfinancial reporting is a requirement for allcompanies Make it a listing requirement for companiesto put their sustainability strategy andreporting to the vote at their AGM Play a leading role by improving their ownESG disclosure and performance if they areasking for similar standards fromcompanies listed on their exchange Encourage best practice among companiesthrough development of indices thatincorporate full ESG inclusion criteria Promote cooperation with regulators,investors, companies, analysts, and widerstakeholders to help harmonise integratedreporting into a single global framework Periodically review any actions taken in linewith the above recommendations foraddressing ESG factors in order to helpcreate a level playing field necessary topush the implementation of thesustainability agenda to a higher level
ContextIn November 2009, the United Nations (UN)invited the world’s stock exchanges to opendialogue with investors, regulators andcompanies, to find creative ways forimproving corporate ESG disclosure andperformance with the ultimate goal ofencouraging responsible long-termapproaches to investment. It was a call torecognise the momentum achieved byresponsible investment (RI) as part of thesolution to the global financial crisis.Evidence from Europe and the US indicatesthat RI outpaced the recorded levels ofinvestment in broader managed assets overthe last six years, with the RI assets undermanagement increasing to 17.5 % in Europeand 11% in the United States.1Integrating ESG considerations intotraditional financial services is critical insupporting the efforts to tackle the pressingissues of climate change, energy and waterscarcity, and human rights. Such anambitious task requires a concertedresponse. At a global level, the UnitedNations Conference on Trade andDevelopment (UNCTAD) will issue arenewed call for achieving the MillenniumDevelopment Goals through investing insustainable development at the WorldInvestment Forum 2010 this September inXiamen, China.2Listing authorities and stock exchanges arewell positioned to contribute by taking thelead in including ESG standards in corporategovernance codes, listing regimes andtrading products. In 2010, Aviva Investors,with support from the UN-backed Principlesfor Responsible Investment (PRI), launchedthe Sustainable Stock Exchanges Initiativewhich enlists the support of financialinstitutions that are PRI signatories to bringabout change in global listing rules. Alllisting authorities and stock exchanges areencouraged to make it a listing requirementthat companies should (1) consider howresponsible and sustainable their businessmodel is, and (2) put a forward-lookingsustainability strategy to the vote at theirAGM. At the same time, the PRI signatoriesare called upon to support the initiative byshowing a commitment to trade on stockexchanges that maintain this listingprovision. This last element is critical inmaking it clear to stock exchanges thatthere is a business case for them makingchanges.3Taking this forward, the Sustainable StockExchanges 2010 event, also hosted thisSeptember in Xiamen, China, by theUNCTAD, the United Nations Global Compact(UN Global Compact) and the PRI, with theparticipation of the World Federation ofExchanges (WFE), will look at how stockexchanges, investors and regulators canstrengthen their joint efforts to enhance theESG disclosure and performance of listedcompanies, and whether this can be bestachieved through voluntary exchange-ledinitiatives or regulation.4Leveraging the role of stock exchangesIn an ever more competitive market, stockexchanges need to create incentives forcompanies with better ESG performance tolist. At the same time, an increasingstakeholder consensus stresses the need forstock exchanges to systematically addressnon-financial considerations through theirtrading operations. This provides a strongincentive for stock exchanges to assume aleadership role in promoting sustainability.According to a 2009 survey conducted bythe WFE among its 51 members, thesustainable investment strategies currentlyendorsed by stock exchanges fall into threecategories: (1) promoting ESG awarenessand standards though IPO or ongoing listingrequirements; (2) providing informationproducts and services in the form ofsustainability indices; and (3) creatingmarkets for specialised products such ascarbon trading and cleantechinvestment.5While the first two approachesseem equally adopted by stock exchanges inboth developed and emerging markets, thethird still represents a trend more commonin the developed world.Despite this patchwork of approaches,progress has continued in recent years withan increasing number of stock exchangessteering their way along the sustainabilitypath. Thus far in 2010: the Istanbul StockExchange (ISE) and the Brazilian StockExchange (BM&FBOVESPA) signed the PRI,taking the pledge to actively seek ESGdisclosure from their investee companies;the Indonesia Stock Exchange introducedthe KEHATI-SRI Index and the ShanghaiStock Exchange established the SocialResponsibility Index6; the EgyptianExchange launched the S&P/EGX ESG Index,the first ESG index in the Middle East andNorth Africa7; the Korean Stock Exchangelaunched its Socially Responsible Investment
(SRI) Index8; NYSE Arca, the wholly ownedsubsidiary of NYSE Euronext began tradingthe ESG Shares North AmericaSustainability Index ETF, which consists ofequity securities of issuers in North Americathat meet specific ESG criteria9; and theJohannesburg Stock Exchange, as part of itsimplementation of the PRI, upgraded itsESG reporting requirements to includeintegrated reporting on a ‘comply orexplain’ basis, making South Africa the firstcountry to mandate the disclosure offinancial and non-financial performance inone integrated report for all listedcompanies.10Without a doubt, all these initiatives, takeneither collectively or on their own, play animportant role in setting and improvingstandards. However it becomes increasinglyapparent that stock exchanges can make areal change by requiring companies todisclose ESG-related information in a similarway to the required financial reporting aspart of their IPO listing and ongoingreporting requirements. This way they canhelp create the level playing field necessaryto push the implementation of thesustainability agenda to a higher level.Drivers for integrated ESG disclosureInvestor perspectiveMandatory ESG disclosure acquires greatersignificance as a driver in the current stateof recovery from the global financial collapsethat recently engulfed the world. Theinadequate appraisal of portfolio risks hasbeen repeatedly spelt out as an underlyingcause of the crisis, leading investors on bothsides of the Atlantic to start lobbying forwider stakeholder activism on ESG issues asa way to enhance stock market valuations.In line with the third principle of the PRI,which asks investors to seek better andmore systematic disclosure from theentities in which they invest, 2010 saw acoalition of investors from 13 countries (allPRI signatories that manage over USD 2.1trillion of assets) engaging with UN GlobalCompact participant companies on the issueof ESG transparency for the thirdconsecutive year. As Steve Waygood, Headof Sustainability, Research and Engagementat Aviva Investors, one of the investorsinvolved in the coalition, emphasised,“Almost 50% of companies respondedpositively to this investor coalition last yearand [ ] [we] expect responses to be evenhigher in 2010. [ ] A company’s ability tomanage and mitigate exposure to ESGissues is an important factor for manymainstream investors, and if companies donot report then investors cannot makesound investment decisions.”11There are now concerted pressures oncompanies to improve their ESG reportingderived from a variety of investor, civilsociety and regulatory initiatives. In June2010, over 1,000 business, investment,academic and UN leaders discussed how tostrengthen the quality of sustainabilityreporting in the corporate sector at the UNGlobal Compact Leaders Summit 2010. Thisfollows an earlier initiative between the UNGlobal Compact and the Global ReportingInitiative (GRI) that announced anagreement to align their work in advancingcorporate responsibility andtransparency.12Similar initiatives haverecently been initiated in Europe, the USAand the emerging markets. Fuller details areprovided in Appendix 1.Investor lobbying and collaborativeengagement efforts need to be combinedwith further active ownership activities toimprove the ESG disclosure of thecompanies they invest in, including votingat the AGM and filing shareholderresolutions in cases where the dialogue withcompanies proves unsuccessful. In the lastdecade, the French pension fund Fonds deréserve pour les retraites13 the Norwegianinsurer KommunalLandspensjonskasse14and the UK’s AvivaInvestors15are just a few of the institutionalinvestors that have progressively used thepower of proxy voting and shareholderresolutions for this purpose. In response toincreasing investor awareness and demand,standardizing the integration of materialESG factors into proxy voting policies andpractices may well become the norm in thenot too distant future.16Stock exchange perspectiveAmidst such a challenging businesslandscape, stock exchanges need to find theright balance between seeking enhancedmarket valuations and improving investorprotection.This is why they can mitigate their ownoperational risk and generate businessopportunities through a systematiccommitment to ESG disclosure andtransparency.
Incorporating ESG considerations into IPOand listing requirements, as well as offeringdiversified ESG-related traded products, willhelp stock exchanges protect and increasetheir reputation, support the long termvalue of all their listed companies andmaximise competitive advantage.Reputation - The reputation of a stockexchange is highly dependent on robustcorporate governance standards. This iswhy the continual improvement of its listingcodes is likely to make the exchange moreattractive to companies and investors.Through the integration of ESG issues ingovernance codes and listing requirements,stock exchanges can encourage bettermanagement of these issues over the longterm. For the London Stock Exchange(LSE), for example, “protection of brandand reputation are most important assets[ ] and key parts of the Board’s role [ ] toprotect client goodwill.”17Mitigatingreputational risk is one reason why the IrishStock Exchange is revising the corporategovernance code for Irish listed companiesto mirror aspects of the UK CorporateGovernance Code, which is “regardedinternationally as being one of the preeminent codes on corporate governance”.18Competitive advantage - With the globaladvancement of information technology andthe liberalisation of capital markets, stockexchanges are competing both by regionand by product and trading type. In Europe,the 2007 Markets in Financial InstrumentsDirective (MiFID) paved the way towardspan-European trading and consolidationamong the European stock exchanges. Therise of the emerging markets, such asBrazil, Russia, India and China19 acceleratedcross-regional trading activities, with crosslisting on better regulated marketspreferred by companies for increasedinvestor protection and recognition. Arecent report by Ernst & Young found that“[.] emerging market companies willcontinue to prefer listing on the LondonStock Exchange, as well as DeutscheBoerse and Euronext, because of their moreestablished regulatory regime” and “despitethe global IPO decline, in 2008, the BRICcountries together hosted 163 deals worthUSD 28 billion [ ] and continued to grow in2009, albeit more slowly at 3.3% onaverage”.20 The advent of high-speed andlow-cost alternative trading systems (ATS),such as Chi-X, and trading platforms forspecialised markets, such as the ChicagoClimate Exchange and the EuropeanClimate Exchange, challenges thetraditional business of stock exchanges thatneed to adapt quickly and provide moresophisticated services. By incorporatingESG considerations into their listing rulesand by providing products such as cleantechindices, stock exchanges may create a soundcompetitive advantage and protect theirmarket position.Pressure from investors and protectingliquidityAs universal owners, institutional investorsare continuously driven by the perceivedneed to maximise returns on investmentand protect stock value. Through theirinvestments in global markets, theyinternalise both negative and positiveexternalities that are generated by thecompanies they invest in and their ESGpractices.21 Institutional investors areincreasingly active in considering the nonfinancial factors that impact on the value oftheir investments over the long term andhence on their overall market returns.With the decline in market liquidity thatoccurred during the global financial crisis,stock exchanges have been searching tomitigate liquidity risk by attracting newIPOs and using sophisticated investmentproducts such as the exchange-tradedfunds (ETF). According to WFE statistics,the market showed signs of recovery, withthe number of IPOs increasing more thanfive times in the period from May 2009 toMay 2010.22 Also, in response tointernational calls for economic revivalthrough ‘green’ growth, the prospect forcleantech investing is growing. Stockexchanges have an opportunity to attractsuch companies to list, and thus protectinvestor liquidity and maximise returns.Gaining ESG credentials and providingcleantech investment products may becomethe norm.Company perspectiveCompanies list on a stock exchange in orderto gain exposure to broader financialmarkets, obtain access to capital and toenhance their reputation and brand equity.In order to be listed on a stock exchange,companies have to meet its listingrequirements. With RI investment growing,there is greater demand for better ESGdisclosure from companies. Soundoperational management of these issues
means that companies can get access tostable markets and gain exposure to awider range of investors and capital overthe long term.The direct ESG impact of stockexchangesLast year, EIRIS analysed stock exchangesto determine the extent to which theymanaged their direct ESG impacts and hadsustainability indices or listing requirementsin place. This analysis was used, in part, asa proxy for the level of awareness andstrategic importance they attributed to ESGissues. However, it found that exchangesperformed poorly on their own ESGperformance.23 Improvements to their ownESG disclosure and performance are likelyto occur if listing requirements areintroduced, thereby implementing goodpractice.Whilst the link between listing requirementsand improving the corporate disclosure andperformance of stock exchanges is not themain focus of this paper, it should not beforgotten that most stock exchanges arelisted corporate actors in their own rightwith investors having interests in them asowners as well as being the users of theirservices. Accordingly, stock exchangesshould lead by example and improve theirown ESG disclosure and performance if theyare asking for similar standards from theirlisted companies. A growing number ofexchange owners will become interested inthe operations of those exchanges and theirimpact upon their whole portfolio of assetswhen it comes to managing their own longterm ESG risks.Snapshot of stock exchanges’ currentpracticeArguably the influence of stock exchangesin promoting ESG standards is greatestthrough their indirect impacts. AccordinglyEIRIS has now chosen to assess a widersample of listed stock exchanges on howsystematically they incorporate full ESGstandards in their listing rules and tradingproducts.As Table 1 shows, there are differentapproaches among stock exchanges inpromoting ESG standards, either withintheir listing rules, tradable products or both.Some stock exchanges have sustainableindices but have not included any ESGissues in their listing rules, others haveextended or limited ESG requirements intheir listing rules, giving a rather patchyapproach overall.This analysis is deliberately weightedtowards the ESG disclosure requirementsincluded in IPOs, ongoing listing rules andcorporate governance codes as this iswhere stock exchanges can have thegreatest impact upon improving ESGstandards among listed companies.Key findings: Most exchanges in our sample havepoor ESG standards included in theirIPO and listing requirements.All exchanges already have mandatorygovernance disclosure requirementsincorporated in their IPO and ongoinglisting rules or from associatedcorporate governance codes. Thisreflects the focus on corporategovernance standards.However only 4 exchanges(representing 20% of our sample),mostly from emerging markets, exceedthis narrow focus: Bursa Malaysia andthe Johannesburg Stock Exchange haveincorporated full ESG disclosurerequirements into their ongoing listingrules; the Shanghai Stock Exchange hasintroduced environmental requirementsfor companies in the 14 most energyintensive industries before initiating anIPO. Also the Australian SecuritiesExchange has included full ESGdisclosure requirements in its corporategovernance code.Some exchanges have developed indicesfocused on environmental issues.However opportunities also exist todevelop initiatives which encompass abroader range of ESG issues.Sustainability indices are evident in bothdeveloped and emerging markets.Specialised products such as carbontrading and cleantech ETFs currentlyappear to be the preserve of exchangesin the developed markets.
Table 1: Snapshot of current practice of how stock exchanges incorporate ESG factorsStock exchangeCountryESG disclosure requirementsincluded in IPO rules,ongoing listing rules andcorporate governance lian SecuritiesExchange (ASX)AustraliaY (ESG – in CorporateGovernance code)-PlannedBolsa y MercadosEspanoles (BME)SpainP(G)Planned-Deutsche BörseGermanyP(G)YYLondon Stock Exchange(LSE)UKP (G)Y-NASDAQ OMXUSAP (G)YYNYSE EuronextUSAP (G)YYTel-Aviv Stock ExchangeIsraelP(G)Y-TMX GroupCanadaP (G)-P (with MCeX)Wiener BörseAustriaP (G)Y-BM&F BovespaBrazilP(G)YPlannedBolsa Mexicana deValores (BMV)MexicoP(G)Planned-Bursa MalaysiaMalaysiaY (ESG – in ongoing listingrules)--The Egyptian ExchangeEgyptP(G)Y-Hong Kong Exchange &ClearingHong KongP(G)--Indonesia StockExchangeIndonesiaP(G)Y-Johannesburg StockExchange (JSE)South AfricaY (ESG – in ongoing listingrules)Y-Korea Exchange (KRX)South KoreaP(G)Y-National Stock Exchangeof IndiaIndiaP(G)Y-Shanghai StockExchange (SSE)ChinaY-Singapore ExchangeSingaporeP (EG – G standards inCorporate Governance code andE standards through IPO listingfor 14 most polluting industries)P(G)--Developed marketsEmerging marketsNOTE: Y yes; P partial; E environment; G governance; S socialSource: Data is in part derived from ‘Exchanges and Sustainable Investment’, a report prepared for the World Federation ofExchanges by Dan Siddy, August 2009
ConclusionStock exchanges can enhance corporateESG disclosure and performance byapplying ESG standards within IPO andongoing listing rules, corporate governancecodes, and by offering ESG-related tradedproducts.Some exchanges have alreadyincorporated ESG reporting requirementsin their listing rules and corporategovernance codes. China’s Green IPOpolicy, which requires companies in 14energy-intensive industries to undertakeenvironmental assessments beforeinitiating an IPO, is a good workingexample. Bursa Malaysia and theJohannesburg Stock Exchange are two ofthe leading exchanges that haveincorporated mandatory ESG reportingrequirements for all listed companies. TheAustralian Stock Exchange hasincorporated an ESG disclosurerequirement on a ‘comply or explain’ basisas part of its Corporate GovernancePrinciples.24To date, sustainability indices have beenan eye-catching development for reflectingthe ESG performance and disclosure oflisted companies. In the last decade, stockexchanges launched such indices as a wayto provide investors with a tool formeasuring the performance of companieswith good ESG track records. Among thefirst indices on the market, the BM&FBovespa ISE Index, the Dow JonesSustainability Indexes, the FTSE4GoodIndex and the JSE SRI Index greatlycontributed to the improvement of the ESGperformance of companies and implicitly toraising the international profile ofresponsible investment.However it is apparent that stockexchanges can do more to harmonise theuse of ESG standards across markets byrequiring companies to disclose, as part oftheir IPO and ongoing listing requirements,ESG-related information in a mannersimilar to mandatory financial reporting.Only in this way can stock exchanges fullycompel companies to address theirmaterial ESG issues and help create anecessary level playing field.25Mandatory ESG disclosure is not new onthe corporate agenda. However, it has astronger appeal in the current financialcontext as investors are looking for newways to mitigate their investment risks.Institutional investors are increasingly proactive in promoting ESG standards throughthe use of proxy voting policies andshareholder resolutions and throughlobbying market regulators. In June 2010,the UK’s Financial Reporting Council (FRC)revised the Corporate Governance Code toinclude engagement principles forinstitutional investors to take the ESG risksof their investee companies into account.26Against this background, stock exchangeshave the opportunity to contribute byadopting a systematic approach towardsintegrated corporate reporting. The costsof not doing so include the potential loss ofbusiness opportunities to the exchangesthemselves, and the risk that investorsmay be ignorant of the ESG risks involvedin their portfolios leaving financial marketsvulnerable to major ESG shocks in future.Appendix 1: Initiatives on mandatoryESG disclosure initiated in Europe, theUSA and the emerging marketsIn Europe, Eurosif (the EuropeanSustainable Investment Forum) and EFFAS(the European Federation of FinancialAnalysts Societies) requested that theEuropean Commission (EC) put forward aproposal to mandate European companiesto publish ESG information not as anadditional reporting item but disclosedalongside financial data.27 The EC’s GreenPaper on Corporate Governance inFinancial Institutions, issued in June 2010and open for public consultation untilSeptember 2010, seeks to address severalfactors standing in the way of investorengagement: “the costs of activeengagement, the lack of effectiveshareholder rights, obstacles to crossborder voting rights and the uncertaintyover legal concepts such as ‘acting inconcert’”. Any future legislative or nonlegislative proposals will be adopted during2011.28In the US, the Securities and ExchangeCommission (SEC) issued the ‘Guidanceregarding Disclosure related to ClimateChange’ in February 2010 to clarify theexisting rules by requiring companies todisclose material risks relating to climatechange.29 Following the Gulf of Mexico oilspill in April 2010, the US governmentraised expectations for regulation on
mandatory ESG disclosure with officialsstrongly considering regulatory options. InJune 2010, the Sustainable InvestmentForum (SIF) asked the SEC for mandatoryESG reporting to accord with the GRIreporting AndEvents/UNGC bulletin/june 2010.html [retrieved August 2010]13http://www.fondsdereserve.fr/IMG/pdf/Proxy voting guidelines February 2010.pdf [retrieved August 2010]14http://www.klp.no/web/klpno.nsf/ all/4C59A2A3DB396F83C12575D2003E128F [retrieved August 2010]15In the emerging markets, 50 investors withmore than USD 1 trillion in assets undermanagement signed up to the ‘EmergingMarkets Disclosure Project’s (EMDP)Investor Statement on Corporate ESGDisclosure in Emerging Markets’ in April2010. This encourages companies todisclose greater ESG-related information.The EMDP, an international initiativelaunched in 2008, is in its third phasefocusing on outreach and engagement withcompanies operating in Brazil, India,Indonesia, South Korea, and South Africato promote greater sustainabilitydisclosure. A report jointly published inApril 2010 by the EMDP Korea Team,KOCSR, EIRIS and Responsible Researchfound that the ESG reporting of Koreancompanies improved since 2006. It furtherconcluded with recommendations forKorean investors to use their leverage withthe Korean government, agencies and thestock exchange listing authorities to followthe steps taken by countries with the bestESG reporting practices and to promotereforms such as mandatory reportingregulations, listing requirements andexchange‐sponsored SRI s/sri studies release.cfm?id 108 [retrieved August about wif[retrieved August 2010]3Aviva Investors, 2010, ‘A PRI collaborative engagementproposal for more sustainable stock exchanges’4Sustainable Stock Exchanges / [retrievedAugust 2010]5WFE, August 2009, ‘Exchanges and SustainableInvestment’, SG.pdf [retrieved hp?id 33947[retrieved August 2010]7The index was launched in cooperation with the Institute ofDirectors and Standard & Poor’s. US%200510.pdf [retrievedAugust ress%20Release KRX%20SRI%20Index%20Launched 20090909.pdf[retrieved August [retrieved August ews/integrated-reports-voluntary-filing# ftn4[retrieved August -2010[retrieved August ps/internet/documents/salessupportmaterial/pdf 017456.pdf [retrievedAugust 2010]16In this context, EIRIS’ Enhanced ESG Voting Service waslaunched in 2010 to assist investors through all phases ofenhancing their voting including integrating ESGconsiderations into proxy voting policy, providing votingrecommendations, supporting engagement and assisting withreporting on voting and engagement activity.http://www.eiris.org/managers/ps enhanced ESG voting service.html [retrieved August documents/annual-report-2010.pdf [retrieved August 2010]18http://www.ise.ie/index.asp?locID 660&docID -1[retrieved August 2010]19Also known as the BRIC ts/Global-IPOTrends-Report-2009-EN/ FILE/Global-IPO-Trends-Report2009-EN.pdf [retrieved August 2010]21http://academic.unpri.org/index.php?option com content&view article&id 16&Itemid 39;http://findarticles.com/p/articles/mi m1093/is 4 43/ai 64458672/ [retrieved August ey-marketfigures [retrieved August 2010]23EIRIS, 2009, ‘Taking stock: how leading stock exchangesare addressing ESG issues and the role they can play inenhancing ESG ublications/StockExchanges&ESGNov09.pdf [retrieved August 2010]24http://www.asx.com.au/about/corporate governance/index.htm [retrieved August 2010]25This paper concentrates on the general principle ofimproving ESG disclosure. A debate about either ensuring thecredibility and verification of the data or whether informationfocuses on material ESG risks or wider sustainability mattersis beyond its remit.26The UK Corporate Governance rporate Governance/UK%20Corp%20Gov%20C
into stock exchange IPO and ongoing listing requirements. Stock exchanges can require companies to include provisions for Annual General Meeting (AGM) proxy voting and shareholder resolutions. The 2010 UN Sustainable Stock Exchanges event in China will focus on how stock exchanges and key stakeholders can improve ESG disclosure and
USE Uganda Stock Exchange WACMIC West African Capital Markets Integration Council WBCSD World Business Council for Sustainable Development WEF World Economic Forum WFE World Federation of Exchanges WSE Warsaw Stock Exchange ZSE Zimbabwe Stock Exchange Acronyms . STOCK EXCHANGES IN SUB-SAHARAN AFRICA: CAPTURING INTENT TOWARDS ESG REQUIREMENTS 5 .
ESG PORTFOLIO EXTENDED SUMMARY REPORT December 03, 2020 Portfolio Benchmark Weighted Avg ESG Score 6.20 6.03 Adjustment ESG Trend Positive 4.74% 15.81% LAGGARD AVERAGE LEADER Distribution of MSCI ESG Fund Ratings Universe Adjustment Total 0.81% 0.88% Score Adjustment 0.05 - ESG Trend Negative 2.02% 7.49% - ESG Laggards 1.91% 7.44% ESG Quality .
stated to apply to ESG ratings providers may apply to ESG data products providers, and vice versa. 1. The term ESG ratings and data products providers, as used in this report, covers providers who offer ESG ratings and/or ESG data products. Where there is a need to single out ESG data products providers who
ESG investment trends, and build capacity by promoting ESG standards, products, services, and practices. With such a large volume of assets globally now guided by sustainable investment practices, Saudi Exchange has a responsibility to all its market participants to highlight the importance of ESG and the opportunities available.
ESG quality, from the asset allocation mix, a question similarly posed by Schroders [2019]7. DWS Approach to ESG in SAA On the aforementioned point of inclusive versus exclusive ESG SAA approaches, we take the more inclusive approach. First, ‘ESG integration’ as for PRI is primarily a risk
Portion of cases where ESG affected portfolio construction LE 6.1 150/150 Pre-investment phase ESG risk management Compliance processes for negative screening LE 8 200/200 Post-investment phase ESG risk management Incorporation of ESG in regular reviews LE 9 150/150 Post-investment phase ESG risk management Identification of ESG incidents LE .
ESG and financial variables is interpreted as ESG being the cause and financial value the effect, however the transmission can be interchanged. COMPONENTS/CRITERIONS OF ESG: 3 key components of ESG are - Environmental, Social and (corporate) Governance aspects. Since ESG factors are often interrelated, there may be scenarios
Before you go, here is a bit of history of 한글 (Hangeul, the Korean alphabet): Korean is the official language of Korea, both North and South. There are around 78 million people who speak Korean around the world. [1] 한글 (the Korean alphabet) was invented by Sejong the Great in the 15th century. Before that time, people
