The Sustainable Stock Exchanges (SSE) initiative has worked with the Principles for Responsible Investment (PRI) on a new ‘Communication to Stakeholders’ aimed at engaging capital markets players on RI matters.
Signatory exchanges to the project, which is backed by the UN Conference on Trade and Development (UNCTAD), the UN Global Compact, the UN Environment Program’s Finance Initiative (UNEP FI), and the PRI, have started publishing the communication to “engage capital market participants” in a dialogue on responsible investment and sustainable business practices. The Communication explains each exchange’s approach to promoting sustainability among investors and companies. “These are the first such disclosures done by exchanges through the SSE,” it says.
The SSE’s Secretariat developed it with the exchanges and the PRI Investor Working Group. It can be found on the SSE website, along with a database of the sustainability initiatives of dozens of exchanges globally.
“Greater transparency will lead to improved performance and this will lead to an environment more conducive to sustainable investment,” said Fiona Reynolds, Managing Director at the PRI.“The Communication is another step forward towards accomplishing that goal.”
The PRI’s SSE Investor Working Group is led by Aviva Investors.
“Greater transparency will lead to improved performance”
Gavin Power, Deputy Director of the UN Global Compact, called it a “very effective tool” for engaging boards, top executives and employees: “Our partner exchanges are already using it to start an internal conversation about their role in sustainable development and sustainable capital markets.”
The newest partner for the SSE is the Nairobi Securities Exchange, and Chief Executive Geoffrey Odundo said it plans to host various events “to create awareness and inculcate the merits of ESG reporting”.
The SSE encourages all exchanges, including those not currently signed up, to use the Communication to Stakeholders to promote transparency in their markets and facilitate an “open dialogue”.