A World Federation of Exchanges (WFE) survey shows investors are increasingly studying the sustainability practices and policies of companies as a factor in their investment decisions.

The World Federation of Exchanges (WFE) has formed  a new sustainability working group at its Working Committee meeting in Mumbai last week.

(Paris, 26 September 2011). The World Federation of Exchanges (WFE) announced that the recipient of the WFE Award for Excellence this year will be Professor Mervyn King, the incoming Chairman of the International Integrated Reporting Committee (IIRC). South Africa native Professor King is designated for this Award in recognition of his work in leading national commissions on corporate governance reform, and for driving forward a financial reporting framework that is better able to accommodate the complexity and need for transparency in this period of financial and economic turmoil – an Integrated Report.

(11 October 2010, Paris) Chairmen and Chief Executives from more than 68 of the world’s leading exchanges gathered in Paris this week for the 50th General Assembly and Annual Meeting of the World Federation of Exchanges (WFE ). This assembly represents the largest and most widely attended gathering of global exchange leaders.

This publication has articles from different professionals on sustainability as well as the cmplete version of the WFE report on exchanges and sustainable investment prepared in August 2009.

On 2 November 2009, more than 100 top executives from around the world met at UN Headquarters in New York. The goal is to encourage responsible long-term approaches to investment.

Paris, France (2 November 2009) – The World Federation of Exchanges (WFE) has announced the publication of an interactive report, “Exchanges and Sustainable Investment,” presented today at a United Nations event in New York. A follow up to the WFE’s 2004 report, the research provides an update on the growth of sustainable investments as mainstream products accessible to investors, regulators and companies.


News Article

Korea Exchange (KRX) publicly announced that it has joined the United Nations Sustainable Stock Exchanges (SSE) Initiative as a Partner Exchange to promote sustainable business practices among listed companies at the UN Global Compact Korea Leaders Summit 2015 held on the 19th May 2015 in Seoul.  

The Ministry of Environment and the Korea Exchange (KRX) announced that they will hold an opening ceremony of the emissions trading market at the KRX's main office located in Busan and kick off trading on January 12, 2015.

The emissions trading market is opened pursuant to the Emissions Trading Scheme implemented since January 1, 2015 and trades KAU (Allowances allotted to corporations) and KCU (offsetting credit like CERs).

“Oslo Børs is to become the first stock exchange in the world to launch a separate list for green bonds. We are doing this to draw attention to environmentally friendly investments”, comments Bente A. Landsnes, President & CEO of Oslo Børs.

The symbolic ringing of the opening bell at Thursday`s trading session marked the starting point of celebrations of ten years of ISE. The event enjoyed the participation of BM&FBOVESPA CEO Edemir Pinto, FGV-EAESP Center for Sustainability Studies (GVces) Coordinator Mario Monzoni and representatives of the 11 companies that have been part of ISE since its first portfolio: AES Eletropaulo, Banco do Brasil, Bradesco, Braskem, BRF, Cemig, CPFL Energia, Fibria, Itaú Unibanco, Natura and Tractebel.

During the event there was the announcement of a series of initiatives that will be implemented up to November 2015 in celebration of ten years of the index. One of the highlights is the ISE Indicators Platform, which will be launched at the start of December at the new ISE website. This platform will allow the user to consult a database that has been accumulated over the ten years of the portfolio and which encompasses the economic performance of the index, the performance of its companies and the themes under focus. This will enable the generation of dynamic graphs and analyses that are based on the questionnaire’s criteria, on indicators and on the relevant themes.

São Paulo, November 26, 2014 – BM&FBOVESPA announced the tenth portfolio of the Corporate Sustainability Index (ISE), effective from January 05, 2015 to January 02, 2016. The new portfolio is composed of 51 stocks of 40 companies. The companies are drawn from 19 sectors and have a combined market capitalization of BRL 1.22 trillion, or 49.87% of the combined figure for all of the companies traded on BM&FBOVESPA, based on the close of trading on November 24, 2014 (in the previous year, combined market capitalization was BRL 1.14 trillion, the equivalent of 47.16% of the total, based on the close of trading on November 26, 2013).

Of the 40 companies in the current portfolio, four are new: JSL, B2W DIGITAL, LOJAS AMERICANAS and LOJAS RENNER, with the latter three being responsible for the Retail sector going onto ISE. The larger number of sectors increases attractiveness for investors, due to greater diversification, and also demonstrates that the Sustainability trend is gaining maturity as its reach stretches further across sectors.

In a move that will affect a large swathe of companies in Singapore and Southeast Asia, the Singapore Exchange (SGX) will be making it mandatory for all listed companies to publish sustainability reports. Giving the keynote address at the annual International Singapore Compact CSR Summit on Friday, SGX chief executive Magnus Bocker said the exchange is embarking on a one year study to determine what guidelines should be adopted for these reports. He noted that since SGX launched voluntary guidelines for sustainability reporting in 2011, take-up by companies has been slow “We will take a leading role… and we will make it the rule”, Bocker announced. 

Deutsche Börse has joined the United Nations' Sustainable Stock Exchanges initiative (SSE). The aim of the initiative, founded by the UN Secretary-General in 2009, is to increase exchange-listed companies' transparency and commitment to environmental, social and corporate governance issues and to make the capital market more aware of these issues.

The Ministry of Environment and the Korea Exchange (KRX) announced that they will start a mock emission trading from Sep. 29 (Mon.), 2014 in order to successfully open an official Emission Trading Market in Jan. 2015.

- The mock market will be operated in two (2) phases until Dec. 24 (Wed.) based on an emission trading system to be developed by the KRX.

Tasks to be done in the phase 1 include: system integration among KRX, Greenhouse Gas Inventory & Research Center of Korea, Koscom, and settlement banks; a test for submission of orders and execution of transactions by companies with emission allowance; and education for the companies on the mock trading.

Tasks to be done in the phase 2 include: with the participation of all companies allotted with emission allowance by the Ministry of Environment, all through process of the emission trading from order placement and execution of transactions to clearing and settlement to be conducted in the environment as same as that of the real regular market.

- The mock trading market is expected to serve as a good opportunity for each company to experience the whole trading process in advance as companies will be allowed to directly get access to the KRX trading system from their place of business.

The WFE Sustainability Working Group (SWG), which includes representatives from 19 WFE member exchanges from around the world, convenes regularly to discuss material concerns and share best practices related to sustainability. The group works under the auspices (and with the assistance) of the WFE, focusing on the needs of the exchange business. It is an internal discussion group, not a forum for the debate of investor proposals, reporting frameworks, or the work of NGOs and other advocates. Although the SWG is keenly aware of these dynamics, it will not engage, endorse, or promote any outside group or agency during the course of its work.

Instead, the SWG investigates the material need (if any) for exchanges to seek, standardize, and/or publish environmental, social, and corporate governance (ESG) data. Through careful analysis of existing data forms and reporting frameworks, group members seek to understand the real impacts, both positive and negative, on our business. Furthermore, the SWG will reflect upon the role of exchanges in the formation and sustenance of a fair, open, and transparent economy—and the proper leverage that exchanges may exert in promoting more sustainable business models.

We hope our work proves productive and enlightening enough to be offered to the general membership of the WFE for consideration in due course.

Evan Harvey, Chairman

Corli le Roux, Vice Chair


BM&FBOVESPA will start annual compensation of its greenhouse gas emissions that cannot be reduced, thus becoming carbon neutral. This initiative is being backdated to 2011 and 2012 and seeks among other things to encourage the adoption of best sustainability practices by listed companies and by the market as a whole. This course of action is also in line with the Exchange’s Sustainability Policy – approved by the Board of Directors in 2013 – and cements the commitment to business initiatives related to climate change.

The Global Reporting Initiative will officially launch its Focal Point South Africa at the Johannesburg Stock Exchange next week, with a mission to make sustainability reporting standard practice for companies and organizations in South Africa and the wider region.

BSE Ltd. has been the first amongst global peers to join five other leading exchanges that have publicly committed to promoting sustainable investment practices. The other exchanges such as the Brazilian stock exchange BM& FBOVESPA, Egyptian Exchange (EGX), Istanbul Stock Exchange (ISE), Johannesburg Stock Exchange (JSE) and NASDAQ OMX made a commitment towards improving sustainability at the SSE, Sustainable Stock Exchanges 2012 global dialogue in Rio de Janeiro earlier this year. 


İMKB Chairman & CEO İbrahim M. TURHAN participated in the Sustainable Stock Exchanges (SSE) 2012 Global Dialogues meeting organized jointly by the United Nations Global Compact, United Nations Conference on Trade and Development (UNCTAD), UN Principles for Responsible Investment (PRI), and United Nations Environment Programme (UNEP) Finance Initiative.


BM&FBOVESPA, NASDAQ OMX, the Johannesburg Stock Exchange (JSE), the Istanbul Stock Exchange (ISE) and the Egyptian Exchange (EGX) signed a commitment to responsible investment and to publishing information about companies listed on these markets, at the Rio +20 United Nations Conference on Sustainable Development.


BM&FBOVESPA has been elected the most sustainable Latin American exchange (Best Sustainable Stock Exchange 2012) in the `Exchanges & Brokers Awards’ promoted by UK-based financial magazine World Finance. The award was created in 2007, with voting by the magazine’s international readership.

Indian markets witnessed the launch of the first-ever live Carbon Index BSE-GREENEX, at the hands of Dr. (Shri) M Veerappa Moily, Hon’ble Minister of Corporate Affairs, GoI at BSE today.

BSE Ltd. (Formerly Bombay Stock Exchange Ltd.) in association with gTrade (supported by GIZ promoted by Federal Republic of Germany, Observer Research Foundation and IIM Ahmedabad) has constructed BSE-GREENEX - designed specifically to promote green investing, with emphasis on financial performance and long term viability of companies. It is based upon purely quantitative and objective performance signals to assess carbon performance. BSE-GREENEX includes top 20 companies based on Green House Gas Numbers, Free Float Market capitalisation & Turnover.

Mexico’s stock exchange recently announced the launch of its new sustainability index, which in addition to the FTSE4Good Index and the Dow Jones Sustainability Index, is only the third of its kind in the world. With a total stock value of $450 billion, Bolsa Mexicana de Valores (BMV), is the second largest financial exchange in Latin America. -- Bolsa Mexicana de Valores (BMV), Mexico's stock exchange and the second-largest exchange in Latin America with a total value of stocks of more than $450 billion, announced today the launch of a new sustainability index. The methodology and assessment framework behind the index will be provided by EIRIS and the research firm's Mexican partner, Ecovalores.

Business and investment leaders today call for a new approach to corporate reporting in a landmark Discussion Paper, called Towards Integrated Reporting – Communicating Value in the 21st Century, published by the International Integrated Reporting Committee (IIRC).

Integrated Reporting will provide more comprehensive and meaningful information about all aspects of an organization‟s performance and position, presented in a much clearer, more concise and more user friendly format. In particular it will demonstrate the links between an organization‟s financial performance and the social, environmental and economic context within which it operates.

The Stock Exchange of Thailand (SET) joins hands with three organizations to attract alternative energy businesses into the capital market, enhancing national energy stability and strengthening Thailand’s economy.

On 1 September 2011, the European Energy Exchange (EEX) and the Eurex Exchange will introduce a new incentive model for the emissions market which aims at strengthening the EEX CO2 market in the competition with other trading platforms. The model targets the secondary market trading and is designed to increase the attractiveness of EEX prices (tight spreads) and hence liquidity of the markets.

NYSE Euronext (NYX) announced that it is making the entire company carbon neutral. Building on its existing energy efficiency and conservation efforts, the company announced that it has purchased renewable-energy certificates and carbon offsets that together neutralize the remaining environmental impact of the company’s global operations, making it the only global exchange operator and technology provider to achieve such a status.


Views Article

The global competition for capital is fierce and intensifying.  Yet the information platform on which so much capital market activity is based has not been updated for over a generation.  It is time for corporate reporting to step up to the plate, and become a partner, alongside businesses, stock exchanges and providers of financial capital, to help foster the conditions for investment, trade and job creation.

Stock exchanges can play an important role in promoting corporate sustainability reporting. By incorporating sustainability disclosure requirements into their listing standards, stock exchanges can create a strong incentive for companies to measure and publicly disclose their sustainability performance to the market.

The majority of southern African retirement funds will soon be well equipped to integrate environmental, social and corporate governance (ESG) factors into their investment decisions and ownership activities. An industry-led initiative, Sustainable Returns for Pensions and Society, responds to new regulations and aligns with efforts by the Johannesburg Stock Exchange (JSE).

The United Nations Conference on Sustainable Development in Rio de Janeiro this month underlines why responsible investment is becoming an important strategic issue for a growing number of exchanges, and provides a timely opportunity to take stock and contemplate the where we may be heading next.

William Brodsky - CBOE.jpg

CBOE Holdings Chairman and CEO William J. Brodsky, the former chairman of WFE, was the only U.S. exchange representative invited to participate in a high-level Institute of International Finance conference preceding February’s G-20 Summit in Mexico City.

While the global financial crisis succeeded in drawing attention to sustainable practices in company behaviour and investor decision-making, responsible investing was a fast-growing phenomenon well before September 2008. In South Africa, a confluence of factors is driving companies and investors to focus on long-term goals rather than short-term gains. A primary motivator had been provided by the Johannesburg Stock Exchange (JSE)’s expansive activity in the area.

During the decade 2000-2009 the largest listed companies in Central and Eastern Europe (CEE) significantly improved their financial and extra-financial reporting, thereby increasing disclosure of information on environmental, social and governance (ESG) indicators. This article outlines the drivers that led to increased ESG disclosure in CEE, presents detailed data on the types of ESG data disclosed and analyzes the trends which developed over the decade.

Although exchanges are still grappling with the consequences of the demutualization process, with innovations in information and communication technologies, and with new demands regarding corporate governance, they adhered to social responsibility standards. Many world exchanges have endorsed sustainable development as foreseen in the Brundtland Report and all its political ramifications.

On May 31, 2010, South Africa established the Integrated Reporting Committee (IRC) under the chairmanship of Professor Mervyn King. The founding members of the committee are The Association for Savings and Investment SA, Business Unity South Africa, Institute of Directors SA, Johannesburg Stock Exchange, and The South African Institute of Chartered Accountants.

As we landed at the airport we got a glimpse of things to come. There was an exclusive welcoming reception for the conference participants, with friendly receptionists handing out “Welcome to Hopenhagen” brochures. The event’s host city of Copenhagen would become for the next two weeks “Hopenhagen”, the city of hope where the world would gather in December of 2009 to discuss the future of the planet at the 15th United Nations Climate Change Conference (COP 15).

Global media attention was firmly focused on the Danish capital for two weeks in December last year as world leaders gathered in an attempt to come up with solutions to probably the greatest challenge yet faced by mankind: How to reverse the damage that we are doing to our planet as a result of our thirst for energy.

As the UN-backed Principles for Responsible Investment (PRI) continues to see tremendous growth in signatories and business commitment, there is increasing interest expressed by investors in the role of regulators and quasi-regulators in encouraging higher standards of corporate conduct and transparency. To explore how exchanges can contribute, the PRI Initiative, along with the UN Global Compact and UNCTAD, are convening a meeting on Sustainable Stock Exchanges at UN Headquarters in New York on 2 November.

Many exchanges are adopting proactive commercial strategies in response to growing investor interest in environmental, social and governance (ESG) issues and global sustainable development challenges such as climate change, according to a new report published this month by the WFE.


WFE Annual Meeting, Paris 2010 - Panel 7 Exchanges advancing environmental, social and governance (ESG) work

Panel 7 Exchanges advancing environmental, social and governance (ESG) work Summary