SUSTAINABLE STOCK EXCHANGES
JANUARY 2015 UPDATE
I.
GENERAL NEWS
II.
CONSULTATIONS AND DEADLINES
III.
WEBINARS AND EVENTS
IV.
MANAGEMENT NEWS
GENERAL NEWS
CDP HOSTS BLOOMBERG DATA WEBINAR
January 29, 2015
CDP (formerly the Carbon Disclosure Project) hosted a webinar for investors on using Bloomberg
Terminals to access CDP data and improve ESG analysis.
http://conta.cc/1wymNQg
OECD PUBLISHES COMMENTS ON CORPORATE GOVERNANCE PRINCIPLES
January 23, 2015
THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD) PUBLISHED COMMENTS
FROM 75 ORGANIZATIONS ON REVISIONS TO ITS PRINCIPLES OF CORPORATE GOVERNANCE. THE DRAFT
INCLUDES NEW CONTENT REGARDING THE REGULATION OF STOCK EXCHANGES.
Comments: http://bit.ly/18mfGGm; Draft revisions: http://bit.ly/1DcmMXB
THAI EXCHANGE TO RATE COMPANIES ON ESG
January 22, 2015
The Stock Exchange of Thailand (SET), along with six capital market organizations--including the
Securities and Exchanges Commission, will publish a list of companies performing well on ESG
issues. The list will be reviewed annually.
http://bit.ly/1t2ZaEg
THAI NGO EVALUATES COMPANIES ON ESG
January 22, 2015
The Thaipat Institute database evaluates the 537 companies listing on the Stock Exchange of
Thailand on ESG performance. The top performers are included on the ESG100 list, the first
ranking of Thai companies based on sustainability issues.
http://bit.ly/1JmSsLy
An initiative co-convened by
UNEP RELEASES SUSTAINABLE FINANCE INQUIRY REPORT
January 21, 2015
The United Nations Environment Programme (UNEP) report, Pathways to Scale, claims that
innovations in banking, bond markets, and institutional investing are needed to close an
identified sustainable development investment gap. The report blames the gap on persistent
undervaluation of environmental resources.
http://bit.ly/1CiHPZI
MONGOLIAN EXCHANGE RENEWS LSE AGREEMENT
January 20, 2015
The Mongolian Stock Exchange will continue its three-year-old cooperation with the London
Stock Exchange (LSE), signaling international confidence in the Mongolian market.
http://bit.ly/1yLjhJF
NYSE PUBLISHES CORPORATE GOVERNANCE GUIDE
January 20, 2015
The New York Stock Exchange (NYSE) released a new guide on corporate governance, which includes
essays on building trust in boards and developing long-term relationships with investors.
http://bit.ly/1DcxddJ
HKEx-SHENZHEN LINK EXPECTED IN 2015
January 20, 2015
The Hong Kong Stock Exchange (HKEx) and the Shenzhen Stock Exchange are expected to form a
trading link this year. The move would build on the 2014 HKEx-Shanghai Stock Exchange link,
which allowed for the first time foreign investment in Chinese companies and Chinese investment
in companies listed on HKEx.
http://reut.rs/1yHJsiY
MANY EUROPEAN FIRMS EXPLAINING ESG MATERIALITY
January 19, 2015
57% of European firms included on the Dow Jones Sustainability Indices explain their material ESG issues,
according to RobecoSAM’s Sustainability Yearbook 2015. 36% of emerging market firms, 26% of AsiaPacific firms, and 27% of North American firms explained their ESG materiality in 2014.
http://bit.ly/1yJZGaO
LARGEST NORDIC ASSET MANAGER DIVESTS FROM COAL
January 19, 2015
Nordea is removing thermal coal producers from its portfolio, citing the destructive impacts coal
has on the environment, and following the lead of Norwegian pension fund KLP and several other
large investment groups. Nordea’s divestment will impact around $100 million of assets.
http://bit.ly/1xzdL7b
NASDAQ TO HOST OSAKA EXCHANGE TRADING PLATFORM
January 18, 2015
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NASDAQ OMX and the Japan Exchange Group agreed on terms for the American exchange to
provide a trading platform, market surveillance, and risk management technology to the Osaka
Securities Exchange (OSE). The deal expands the OSE’s global reputation and extends NASDAQ’s
reach as an information technology provider.
http://on.mktw.net/1AONi6z
JSE, NSE ANNOUNCE PARTNERSHIP
January 15, 2015
The Johannesburg Stock Exchange (JSE) and the Nigerian Stock Exchange (NSE) partnership will allow
South African companies to list on the NSE, and Nigerian companies to list on the JSE. Both exchanges
expect the partnership to strengthen the African economy.
http://bit.ly/1yg3ySE
GLOBAL RISKS 2015 STRESSES ESG ISSUES
January 15, 2015
The updated World Economic Forum report, which analyses significant global risks, classifies ESG risks as
high impact and very likely. “Water crisis” and “failure of climate change adaptation” join “interstate
conflict” as the top three risks. “Energy price shock” and “biodiversity loss and ecosystem collapse” are
two of the highest impact risks, and “extreme weather events” is the second most likely.
http://bit.ly/1CsD5Ri
OPINION: INVESTORS WANT CARBON DISCLOSURE RULES
January 15, 2015
Many mainstream investors are concerned with the risks climate change poses to their portfolios, and are
frustrated by the lack of informative and consistent sustainability reporting from companies, notes
Corporate Knights. Investors want regulatory action requiring carbon emissions disclosure, but the US SEC
appears unlikely to act.
http://bit.ly/1G2m9oZ
UN GLOBAL COMPACT, GRI, WBCSD TO PUBLISH CORPORATE ESG REPORTING GUIDE
January 14, 2015
Later this year, the UN Global Compact (UNGC), the Global Reporting Initiative (GRI) and the World
Business Council for Sustainable Development (WBCSD) will produce an implementation guide on
corporate reporting against the UN Sustainable Development Goals, expected in September 2015.
http://bit.ly/1161bSR
WORLD BANK COMPLETES GRI G4 REPORT
January 14, 2015
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The World Bank completed its 2014 Global Reporting Initiative (GRI) sustainability report using the GRI
Taxonomy, one of the first Extensible Business Reporting Language (XBRL) taxonomies for sustainability
disclosure. The World Bank is the only multilateral development bank to complete a GRI G4 report.
http://bit.ly/1zu3w9U
LSE, BORSA ISTANBUL SIGN PARTNERSHIP AGREEMENT
January 13, 2015
Turkish index and derivatives products will be traded on the London Stock Exchange (LSE), after the two
exchanges signed a partnership agreement.
http://bit.ly/1KFPEN8
SOUTH KOREA LAUNCHES CARBON EMISSIONS TRADING MARKET
January 12, 2015
The market includes 525 large companies, and is the second largest carbon market in the world,
trailing only the European Union. The South Korean government has capped total carbon
emissions at 1.687 million tons through 2017. Credits are being traded at roughly $8 each.
http://reut.rs/1xyOlGM
JOINT STUDY FINDS LOW RATES OF ESG OVERSIGHT FROM CORPORATE BOARDS
January 12, 2015
The report by the MIT Sloan Management Review, The Boston Consulting Group, and the UN Global
Compact, titled Joining Forces: Collaboration and Leadership for Sustainability, finds that only 42% of
corporate boards are at least moderately engaged in oversight of ESG issues. The global study surveyed
more than 2,500 executives and managers.
http://bit.ly/1zlgBmu
GRI LAUNCHES “REPORTING 2025” PROJECT
January 9, 2015
The new Global Reporting Initiative (GRI) project aims to identify the most important issues for future
sustainability reporting and disclosure, to ensure future reporting guidelines are useful and rigorous.
http://bit.ly/1ukr4XF
THAI FUTURES EXCHANGES TO INTEGRATE
January 9, 2015
The Thai Securities and Exchange Commission has approved the integration of the Agricultural Futures
Exchange of Thailand (AFET) and the Thailand Futures Exchange (TFEX). A December 2014 government
resolution initiated the integration, which is expected to increase Thailand’s competitiveness with
international markets.
http://bit.ly/1DQmBBC
OPINION: THE ROLE OF SOCIAL STOCK EXCHANGES
January 8, 2015
Social stock exchanges, which connect impact investment with socially beneficial enterprises, are a recent
innovation. Active examples exist in the UK, Canada, and Singapore. Social stock exchanges encourage
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impact investment, but two Australian academics argue they could also potentially give governments
excuses for inaction on sustainability issues.
http://bit.ly/15h329A
BSE MOVES TOWARDS COMMODITY EXCHANGE LAUNCH
January 7, 2015
The Bombay Stock Exchange (BSE) moved closer to opening a commodity exchange following approval by
SEBI, India’s capital market regulator. BSE, the largest stock exchange in Asia, would join a crowded Indian
commodities market currently dominated by the Mumbai-based Multi Commodity Exchange.
http://bit.ly/17lVILg
INTEGRATED REPORTING CREATES VALUE FOR BOARDS
January 7, 2015
An International Integrated Reporting Council report, Creating Value: Value to the board, details how
integrated reporting helps corporate boards articulate their business strategies, make better decisions,
and build trust with stakeholders.
http://bit.ly/1C9hmPW
CONSULTATIONS AND DEADLINES
SASB OPENS ACCOUNTING STANDARDS CONSULTATION ON FOOD, AGRICULTURE
Comment deadline: April 14, 2015
The Sustainability Accounting Standards Board (SASB) has opened a public consultation for its Public
Exposure Draft Sustainability Accounting Standards. The document proposes standards for sectors
including agriculture, food and beverages, and tobacco.
http://bit.ly/1yVBeUl
ICGN REVISES NONFINANCIAL REPORTING GUIDELINES
Comment deadline: February 12, 2015
The International Corporate Governance Network’s (ICGN) Revised Integrated Business Reporting
Guidelines propose integrated reporting as key to corporate nonfinancial reporting. ICGN welcomes
comments from its members.
http://bit.ly/1LcZ42V
WEBINARS AND EVENTS
ICGN MADRID REGIONAL CONFERENCE
March 2-3, 2015
The International Corporate Governance Network (ICGN) conference will focus on corporate governance
reform, and will feature speakers from the Organisation for Economic Co-operation and Development and
the International Organization of Securities Commissions.
http://bit.ly/1Beh3jR
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UN GUIDING PRINCIPLES REPORTING FRAMEWORK TO LAUNCH
February 24, 2015
The London launch of the UN Guiding Principles Reporting Framework will include information about the
new guidance for non-financial reporting, which includes human rights performance disclosure. The
registration deadline is February 12th.
http://bit.ly/15CXkiA
DATE CHANGE: PWC HIGH FREQUENCY TRADING AND DARK POOLS WEBINAR
February 3, 2015
The investor-oriented PwC webinar covers the impacts of high frequency trading and dark pools on capital
markets, including information about suggested regulations.
http://bit.ly/1H1UjJU
MANAGEMENT NEWS
SALIL DONDE TO LEAD NASDAQ GLOBAL INFORMATION SERVICES
January 14, 2015
Donde will manage data and index products, which represent 21% of NASDAQ’s revenue. He joins
NASDAQ from Lewtan Technologies Inc., where he served as CEO.
http://bit.ly/1sCvL3y
LOU MODANO NAMED HEAD OF NASDAQ CYBERSECURITY
January 6, 2015
Modano, a senior vice president at NASDAQ, will also retain his responsibilities as head of infrastructure
services. He replaces Mark Graff, head of cybersecurity since 2012.
http://bloom.bg/1BMf1H1
This is a monthly newsletter courtesy of
Ceres' Investor Network on Climate Risk
&
the UN Sustainable Stock Exchanges initiative.
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To send us your related news stories, email Rembert@ceres.org.
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