The World Federation of Exchanges issues Guidance Note on the WFE Green Equity Principles

PRESS RELEASE

The World Federation of Exchanges issues Guidance Note on the WFE Green Equity Principles

London, 14 September 2023 - The World Federation of Exchanges (WFE), the global body for exchanges and CCPs, has issued its Guidance Note on the WFE Green Equity Principles. The Principles are the first global framework for designating listed shares as green.

The WFE Green Equity Principles are based on 5 pillars:

• The amount of a company’s revenues/ investments that must be derived from ‘green’ activities.
• Use of a specified taxonomy.
• Governance (i.e. existing listing requirements).
• Annual assessment by approved reviewers.
• Disclosure around the processes and reviews related to the green classification.

The Guidance Note sets out practical considerations for exchanges who wish to establish offerings that align to the WFE Green Equity Classification and covers the principles themselves, as well as operational matters such as:

• Designation of responsibility within the exchange for overseeing the classification
• Establishing relevant processes including criteria for revoking classification
• Development of the classification mark and provision of public information
• Criteria for assessing the appropriateness of reviewers.

Nandini Sukumar, Chief Executive Officer of the WFE said: “The WFE Green Equity Principles are a significant milestone achieved by the global exchange industry. The Guidance Note, published today, equips aspiring exchanges with the tools to play their part in increasing transparency in sustainable finance and countering greenwashing risks as we move towards a more sustainable global economy”.

The WFE Green Equity Principles and the Guidance Note on the WFE Green Equity Principles will now be open for public consultation until 15 January 2024.

Please submit feedback to [email protected]

The full report can be downloaded here.

For more information, please contact:

Cally Billimore +44 7391 204 007

Communications Manager [email protected]

 

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 250 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 34% are in Asia-Pacific, 45% in EMEA and 21% in the Americas. WFE’s 90 member CCPs and clearing services collectively ensure that risk takers post some $1.3 trillion (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. WFE exchanges, together with other exchanges feeding into our database, are home to over 50,000 listed companies, and the market capitalisation of these entities is over $100 trillion; around $140 trillion (EOB) in trading annually passes through WFE members (at end 2022).

The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data indicators. Its free statistics database stretches back more than 40 years and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.

With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.

Website: www.world-exchanges.org

Twitter: @TheWFE

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