The WFE Transition Equity Principles (the Principles) set out a global framework to guide individual exchanges in establishing Transition Equity Classification Frameworks that aim to improve the flow of funding towards companies that support the transition towards more sustainable economies.
The Principles define criteria for equities, including initial public offerings (IPOs) which, if met, would allow the equities to voluntarily obtain a Transition Equity Classification. The Principles build on the WFE Green Equity Principles, establishing a framework for classifications applicable to equities that are not ‘green’ or ‘sustainable’ now but are on credible pathways towards aligning with an overarching climate goal. Individual exchanges may choose to apply and manage the Principles in their own jurisdictions, assuming that doing so would not contravene existing jurisdictional legislation.
The WFE welcomes further discussion and input on these proposals as part of this consultation paper, which sets out a series of questions for all stakeholders in equity markets. The WFE welcomes comments on the Principles by 8 October. Once the Principles have been finalised, the WFE intends to publish supporting Guidance to accompany the Principles.
Please submit feedback to consultations@world-exchanges.org.