UN Sustainable Stock Exchanges Initiative
| UN Sustainable Stock Exchanges Initiative | |
| Founded | 2009 |
|---|---|
| Headquarters | New York City |
| Products | Tracks activities of stock exchanges involved in sustainability activities |
| @SSEinitiative | |
| Web site | https://sseinitiative.org/ |
| Releases | Organization News |
The UN Sustainable Stock Exchanges (SSE) Initiative is a global platform for exploring how exchanges, in collaboration with investors, companies, regulators, policymakers and international organizations can encourage sustainable investment. To accomplish this, the SSE collects data on exchange actions in the sustainability and ESG arenas, researches and reports on exchange activities, and showcases exchange initiatives on its SSE TV channel. While the SSE engages first with stock exchanges, the other four stakeholder groups - capital market regulators, investors, companies, and policymakers - are key supports of stock exchange efforts to promote and enhance the sustainability and transparency of capital markets worldwide. [1]
History[edit]
Created in November 2009, the UN Sustainable Stock Exchanges (SSE) Initiative provides a global platform for exploring how exchanges, in collaboration with investors, companies, regulators, policymakers and international organizations can encourage sustainable investment. Founded through a UN Partnership organized by UNCTAD, the UN Global Compact, UNEP FI and the PRI, the SSE had 129 stock exchange partners as of August 2022. [2]
Products and Services[edit]
The SSE makes available a database of sustainability activities for all stock exchanges that are either members of the SSE initiative or members of the World Federation of Exchanges. Its databases explore stock exchanges through the lenses of ESG guidance, gender equality, regulation and TCFD activities. The stock exchange database is the most comprehensive database of exchanges worldwide and contains data on all main stock exchanges. Investors and other stakeholders can search the database to understand the work undertaken by any stock exchange to advance sustainability in its respective markets.
From the website, interested partners can learn whether a stock exchange:
- is an SSE Partner Exchange
- has an annual sustainability report
- requires ESG reporting as a listing rule
- has written guidance on ESG reporting
- offers ESG-related training
- has a market covered by a sustainability-related index
- has a sustainability bond listing segment
- has a small- to medium-enterprise (SME) listing platform
- applies a women on boards mandatory minimum rule.[3]
Reports and Papers[edit]
In 2021, the SSE worked with the World Federation of Exchanges (WFE) to develop the paper, "How Derivatives Exchanges Can Promote Sustainable Development – An Action Menu." The paper provides an overview of the ways that derivative markets can encourage more sustainable and just business models among players in the financial system.[4]
Sunstainable Development Goals for Stock Exchanges[edit]
In 2015, UN member states agreed on 17 Sustainable Development Goals (SDGs) to be accomplished by 2030. Known as the 2030 Agenda for Sustainable Development, the SDGs were adopted at the UN Sustainable Development Summit in New York in September and the Paris Agreement on Climate Change in December.[5]Of these 17 goals, the following targets are directly relevant to the capital markets and stock exchanges.[6]
- SDG 5 - Board Room Diversity and Equality. Gender Equality; Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.[7]
- SDG 8 - Decent work and Economic Growth. Small- and Medium-Sized Enterprises; Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services. [8]
- SDG 10 - Reduced Inequalities. Securities Regulation; Target 10.5: Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations. [9]
- SDG 12 - Responsible Consumption and Production. ESG Disclosure; Target 12.6: Encourage companies, especially large and trans-national companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle [10]
- SDG 13 - Climate Action and Green Finance. Green Finance; Target 13.3: Improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. [11]
- SDG 17 Partnerships for sustainable and transparent capital markets. The SSE builds its work on collaboration and partnerships to amplify impact and to ensure a holistic approach. [12]
UN SSE Derivatives Network[edit]
In 2021, the SSE launched the UN SSE Derivatives Network initiative to focus on the role played by derivatives exchanges in the transition to ESG. The initiative launched with 12 founding members and has added two since. Of the Sustainable Development Goals (SDG), of which there are 17 adopted by United Nation member states in 2015 as part of "The 2030 Agenda for Sustainable Development," the SSE identified one goal as immediately relevant to Derivative Exchanges. [13] This is "Target 12.6: Encourage companies, especially large and trans-national companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle."
Membership[edit]
To become a member of the UN SSE initiative, the CEO or Chairperson of the exchange must sign an SSE commitment letter, and make a number of other commitments.
Key People[edit]
- James Zhan, Chair, Director, Investment & Enterprise Division, United Nations Conference on Trade and Development (UNCTD)
- Sanda Ojiambo, Executive Director, United Nations Global Compact (UN Global Compact)
- Eric Usher, Head, United Nations Environment Programme Finance Initiative (UNEP FI)
- David Atkin, CEO, Principles for Responsible Investment (PRI)
References[edit]
- ↑ What we do. Sustainable Stock Exchanges (SSE) initiative.
- ↑ Stock Exchange Database. SSE Initiative.
- ↑ Stock Exchange Database Criteria. SSE Initiative.
- ↑ How Derivatives Exchanges Can Promote Sustainable Development – An Action Menu. SSE Initiative.
- ↑ Sustainable Development Goals. United Nations.
- ↑ What we do. Sustainable Stock Exchanges (SSE) initiative.
- ↑ Gender Equality. Sustainable Stock Exchanges (SSE) initiative.
- ↑ Small and Medium Sized Enterprises. Sustainable Stock Exchanges (SSE) initiative.
- ↑ What we do. Sustainable Stock Exchanges (SSE) initiative.
- ↑ What we do. Sustainable Stock Exchanges (SSE) initiative.
- ↑ What we do. Sustainable Stock Exchanges (SSE) initiative.
- ↑ What we do. Sustainable Stock Exchanges (SSE) initiative.
- ↑ Derivative Exchanges. SSE Initiative.