According to the fifth annual Sustainability Survey published by the World Federation of Exchanges (WFE), 90% of exchanges incorporate ESG initiatives. Many exchanges recognize the UN Sustainable Development Goals, produce their own sustainability reports, and educate market participants about sustainability issues. Some collaborate with external organizations such as Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), and some produce corporate governance ratings for their listed companies.
Exchanges said they were motivated to engage in ESG initiatives due to sustainability concerns, reputation/public relations, and expanded business opportunities. Nandini Sukumar, CEO of WFE said, “We are confident that exchanges will continue to play an important role in the sustainable finance arena.”
The WFE is the global industry group for financial market exchanges and clearing houses (CCPs). The annual survey was conducted to investigate how exchanges engaged with the UN’s Sustainable Development Goals, their sustainability initiatives, transparency and reporting, and sustainability products in the 2018 calendar year.