Stock exchanges in countries around the world, including emerging markets, are noticeably at the forefront in the development of sustainable initiatives, according to a new report. "Sustainability Initiatives: Insights from Stock Exchanges into Motivations and Challenges", from ESG research group EIRIS, looks at the implementation of such initiatives by stock exchanges and provides key recommendations for future effective sustainability initiatives.
The key motivations for stock exchanges in developing sustainability initiatives include:
Stock exchanges shared valuable insights for peer benefit, including:
EIRIS, which works with a number of stock exchanges around the world, gave a number of key recommendations:
“Through their key position in the financial ecosystem stock exchanges can provide powerful encouragement to sustainability, and the benefits from their sustainability initiatives will be for companies, investors and society as a whole,” commented Stephen Hine, Head of Responsible Investment Development at EIRIS.
Research found that there was a strong correlation between those markets with stock exchanges that have pioneered sustainability indices and strong corporate ESG issues. An analysis of the performance of the biggest 300 emerging companies against EIRIS’ Global Sustainability Ratings product found “a markedly strong performance from both South African and Brazilian companies (both of which have stock exchanges with sustainability indices) and weaker ESG performance from companies in China and Russia”.