London, 15 June 2016 - The World Federation of Exchanges ("WFE"), which represents more than 200 market infrastructure providers including exchanges and CCPs, today released its second global Environment, Social and Governance ("ESG") survey.
Highlights of the survey include:
- More than 90% of responding exchanges have an ESG, or sustainability, programme in place, primarily focused on education initiatives for issuers and/or investors, but also including products such as 'green bonds';
- Nearly 100% of respondents believe they should monitor the long-term sustainability of their listed companies, and actively participate in developing better ESG reporting metrics;
- Growing number of respondents (over 50% compared with 30% in 2014) are including ESG disclosures as part of their own reporting framework.
"What is particularly striking about these results is the mainstreaming of sustainability within exchanges," said Nandini Sukumar, Chief Executive Officer, WFE."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."
Siobhan Cleary, Head of Research & Public Policy, WFE added: "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."
Other notable highlights in the 19-page report include more than 75% of responding exchanges commenting that they plan to list sustainability-related instruments in the near future, as a direct result of increasing investor demand. In addition, the survey ranks the top seven reasons for introducing ESG initiatives.
This annual survey is conducted by the WFE, and is compiled from questionnaire responses supplied by exchanges and their clearinghouses.
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About the World Federation of Exchanges (WFE):
Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers. Members also include standalone CCPs that are not part of exchange groups.
The WFE is the definitive source for exchange-traded statistics and publishes over 300 market data indicators. Its statistics database stretches back 70 years, and provides the most definitive information and insight into developments on global exchanges. WFE exchanges are home to nearly 45,000 listed companies.
The WFE promotes the development of fair, efficient and transparent markets. It works with policy makers, regulators and standard-setters around the world to support the development of effective rules and standards for exchanges and market participants.
For more information, please visit: www.world-exchanges.org
About the Sustainability Working Group (SWG):
The WFE SWG was established in May 2014, primarily to act as a research and consultation body for the member exchanges of the WFE on the topic of ESG.At the publication of this report, the SWG had 21 members, and together, the group clarifies and shapes the industry's view on ESG issues as well as providing a platform for learning, the development of standards and advocacy.
Since its formation, the SWG has produced an ESG Recommendations and Guidance document, which included setting out 33 key ESG performance indicators for exchanges to consider in relation to sustainability disclosure in their own markets.
For more information, please contact:
Head of Communications, World Federation of Exchanges
Phone: +44 20 7151 4137 / +44 7850 287 685