sustainable stock exchange initiative: how can african … · 2016-07-06 · a partnership between...
TRANSCRIPT
Sustainable Stock Exchange Initiative:
How can African Exchanges Become Involved?
Presented by:
Xolisa Dhlamini
South Africa Network Manager
Principles for Responsible Investment (PRI)
Website: www.SSEinitiative.org
Email: [email protected]
The SSE is co-organised by:
Exchanges. Policy Makers. Regulators.
Investors. Companies.
Join the Dialogue.
12 Partner Exchanges
Listing over 15,000 companies
US $33 trillion in market capitalization
3 Global Conferences with
more than 300 policy makers, stock
exchange CEOs and investors
USA (2009); China (2010); Brazil (2013)
Geneva 2014
Named by Forbes
magazine as one of the
“World’s Best
Sustainability Ideas”
in 2011
2 SSE Reports on
Progress on top
30 stock
exchanges
www.SSEinitiative.org
4 organizations UNCTAD, Global Compact, PRI
& UNEP-FI
Working as 1 UN
A partnership between the UN, UN-backed organizations, stock exchanges,
investors, companies, regulators and governments
UNCTAD, the UN Global Compact, the PRI and UNEP FI
as founders, are the core organizers of the SSE initiative and manage its secretariat
Facilitate a peer-to-peer dialogue among global exchanges –
to explore how they can work together with investors, regulators, and companies, to enhance corporate transparency, and ultimately performance, on ESG issues and encourage responsible long-term approaches to investment
The
Initiative
Secretariat
Objective
SSE initiative: a partnership to
facilitate action
SSE initiative: How it’s organized
SSE Timeline
2008
2009
2010
2012
UNCTAD + PRI organised two meetings in Geneva for promoting and examining the policy context for responsible
investment
1st SSE Global Dialogue opened by UN Secretary-General Ban Ki-Moon in
New York
2nd SSE Global Dialogue in Xiamen, China, opened by the
Chairman of the China Securities Regulatory
Commission
3rd SSE Global Dialogue in Rio de Janeiro, Brazil; Global Exchanges invited to join SSE
as Partner Exchanges
2013
Three additional stock exchanges join the SSE Initiative including the Nigerian Exchange, the Warsaw
Exchange, and the NYSE with Ban Ki-Moon ringing the closing bell in
New York
2014
Currently three additional partner stock exchanges in
2014, and the upcoming 4th SSE Global Dialogue in
Geneva (14 October)
SSE's Partner Exchanges
SSE initiative: Partner Exchanges
Core Commitment: Promoting corporate sustainability in their markets.
SSE Partner Exchanges: What are
the Benefits?
The SSE is a unique UN forum for exchanges and capital market stakeholders
• Receive peer-to-peer learning and sharing of best practices
• Connect with key global capital market stakeholders: policy makers, investors, regulators, and issuers
while attracting new investors with the prospect of long-term value
• Contribute to the Post-2015 Development Agenda of the UN and the creation of a more sustainable
and inclusive economy
• Demonstrate leadership and differentiate themselves from other competing markets
• Advance the development of activities and products related to sustainability
• Attract public visibility and achieve global reach
▪ A peer-to-peer learning platform for stock exchanges to share best practices and promote sustainable
business
▪ A neutral multi-stakeholder forum for stock exchanges, regulators, policymakers, investors and
companies
▪ Partners with other multilateral organisations to promote capital markets for sustainable development
Conducting research on current stock exchange and regulatory initiatives
Providing a database on sustainability policies and actions being taken by stock exchanges and
regulators
Offering a library of publications on sustainability measures and reporting practices
Providing guidance and training on best practices for policy makers and stock exchanges
Assisting stock exchanges with the development of sustainability indices and other practical initiatives
Creating workshops to increase sustainability awareness and educate sustainability practices
Consensus
building
Research
Capacity
building
SSE initiative: What it does
• Brings together CEO’s of stock exchanges, companies and institutional
investors, alongside high-level policy makers and capital market
regulators.
• Hosted on 14 October 2014 at the Palais des Nations in Geneva,
Switzerland as part of UNCTAD’s 2014 World Investment Forum.
2014 SSE Global Dialogue
Visit the 2014 SSE Global Dialogue website at:
www.sseinitiative.org/global-dialogue/2014-global-dialogue/
"In support of the wider SSE initiative, a group of over 30 PRI signatories led by Aviva Investors created the Sustainable Stock Exchanges
Investor Working Group in 2009, which is coordinated through the PRI, to engage with global exchanges on the way they can promote
sustainable business practices, such as through enhanced sustainability reporting requirements. In addition to this work, many investors had
been previously engaging and continue to engage directly with exchanges on ESG issues outside of the Working Group."
The SSE Investor Working Group
Visit the PRI’s SSE Investor working group website to learn how to get involved with the Working Group.
IOSCO Letter
In addition to the working group, PRI and Ceres' Investor Network on Climate Risk (INCR), with UNEP-FI are facilitating a
global investor communication to the IOSCO Secretariat and its Executive Board, in order to draw attention to investors'
growing needs for timely, comparable, and material disclosure of corporate sustainability information to inform their investment
decisions. To get involved, sign the IOSCO letter and share the invitation.
Learn more at the PRI IOSCO letter webpage.
A peer-to-peer learning platform for stock exchanges to share best practices and promote sustainable
business
A neutral multi-stakeholder forum for stock exchanges, regulators, policymakers, investors and companies
Partners with other multilateral organisations to promote capital markets for sustainable development
▪ Conducting research on current stock exchange and regulatory initiatives
▪ Providing a database on sustainability policies and actions being taken by stock exchanges and
regulators
▪ Offering a library of publications on sustainability measures and reporting practices
Providing guidance and training on best practices for policy makers and stock exchanges
Assisting stock exchanges with the development of sustainability indices and other practical initiatives
Creating workshops to increase sustainability awareness and educate sustainability practices
Consensus
building
Research
Capacity
building
SSE initiative: What it does
2014 SSE Report on Progress
To see more detailed fact sheets on these stock exchanges and regulatory initiatives, please visit SSEinitiative.org
Sustainability measures becoming more widespread in exchanges • Nearly a quarter of exchanges offer training or guidance
• Over a third offer a sustainability index
There is no 'one way' to implement sustainability measures • Almost all G20 countries have some sort of E&S reporting initiative
• Over a third of IOSCO board members have an E&S regulation or initiative
A peer-to-peer learning platform for stock exchanges to share best practices and promote sustainable
business
A neutral multi-stakeholder forum for stock exchanges, regulators, policymakers, investors and companies
Partners with other multilateral organisations to promote capital markets for sustainable development
Conducting research on current stock exchange and regulatory initiatives
Providing a database on sustainability policies and actions being taken by stock exchanges and
regulators
Offering a library of publications on sustainability measures and reporting practices
▪ Providing guidance and training on best practices for policy makers and stock exchanges
▪ Assisting stock exchanges with the development of sustainability indices and other practical initiatives
▪ Creating workshops to increase sustainability awareness and enhance sustainability practices
Consensus
building
Research
Capacity
building
SSE initiative: What it does
Best Practice Guidance for Policymakers and Stock
Exchanges on Sustainability Reporting Initiatives
• Recognizes there is no “one-size-fits-all” solution
• Provides a roadmap for policy makers and exchanges to discover what works best for
them
• Focusing on Corporate Sustainability Reporting to:
1. Meet the evolving information needs of investors;
2. Navigate increasingly complex disclosure requirements and expectations;
3. Manage sustainability performance;
4. Understand and address social and environmental risks and opportunities.
• Serves as a voluntary technical tool to be used to understand the sustainability context,
and to share best practices in the area.
• Available in: English, French, Arabic, Spanish, Russian, and Chinese
The Guidance Documents can be located at: www.sseinitiative.org/publications
Sustainability Index Workshop
"The SSE is only as strong as its member stock exchanges. We hope to
organize more events with our Partner Exchanges that draw on the
experience of multiple stakeholders in order to enhance corporate
sustainability and promote responsible investment.” -- James Zhan,
Director of UNCTAD’s Division on Investment and Enterprise
• Worked closely with Borsa Istanbul and the Sabanci University Corporate Governance
Forum of Turkey to develop a sustainability index for the Borsa Istanbul Partner Stock
Exchange
• Blackrock, a large asset manager with over 4 Trillion USD in assets under
management, delivered the keynote address, stressing the importance of sustainability
issues to mainstream investors like Blackrock.
• Workshop participants included the following:
• International Organizations
• Private companies
• NGOs
• Banks
• Public-sector offices
Momentum for private companies to use
sustainability reporting
Published on 19, July 2014 Sustainable Development Goals (SDGs) - Outcome Document
12.6 encourage companies, especially large and trans-national companies,
to adopt sustainable practices and to integrate sustainability information
into their reporting cycle
• A full 95% of the Global 250 issue
sustainability reports.
• Ernst and Young's survey highlights
sustainability resulting in a better
reputation, and improved access to
capital
Highlights from 2014
• Published the Best Practice Guidance for Policymakers and Stock Exchanges on Sustainability Reporting Initiatives.
• Encouraged Partner Exchanges to make public commitments at the 2014 SSE Global Dialogue.
• Drafted the new biennial progress report: 2014 SSE Report on Progress (available in October).
• Facilitated the quarterly Consultative Group virtual meetings including Partner Exchanges and investor
representatives. This includes cross communication between Partner Exchanges and the PRI SSE Investor Working
Group.
Looking forward... • Planning, in 2015, to work closely with our Partner Exchanges to hold regional events with stock exchanges and other
key stakeholders in different regions across the globe.
• Finalizing an enhanced reporting template for Partner Exchanges that will be announced and in place for 2015.
The SSE initiative and Africa
The SSE wants to:
• Assist smaller stock exchanges in the African region that are interested in promoting sustainable business
• Build consensus at national & regional level through 5 party talks: exchanges, investors, companies, policy makers and regulators
• Make research and best practices guidance and training available to strengthen the business case for sustainability
• Build capacity amongst smaller African exchanges to create sustainability indices, and to strengthen listing requirements
Giving African stock exchanges the ability to:
• Work closely with their listed companies to integrate sustainability measures and reporting into their operations
• Educate investors on how to integrate sustainability reporting and disclosures into their investment decisions
• Consult with policy makers to promote high-quality sustainability reporting
• Provide product differentiation with a diversity of sustainability investment products
Current SSE Partner Exchanges in Africa:
• Stock Exchanges are encouraged to:
• join the SSE and become active in sustainability
• read the Best Practices Guidance Document and visit the SSE website's Data and Research section
• join the World Federation of Exchanges (WFE)'s sustainability working group
• Investors are encouraged to: • join the PRI’s SSE Investor Working Group, led by Aviva Investors, that engages with stock exchanges and regulators to
enhance listing rules and/or regulatory initiatives to require the disclosure of sustainability strategies among listed companies
• Companies are encouraged to: • join the Global Compact’s SSE Company Working Group (forthcoming) lend your voice to the discussion and encourage your
stock exchanges to undertake sustainability activities. Support global discussion on a baseline listing standard to improve
transparency
• Regulators and Policy Makers are encouraged to: • Create the regulatory environment that encourages long-term approaches towards investment and that encourage
standardized sustainability reporting
• All stakeholders are encouraged to: • engage with the global debate at the SSE 2014 Global Dialogue
• consider organizing local events and workshops and to reach out to the SSE with suggestions and new ideas to drive the
discussion forward.
Email us for more information: [email protected]
The Next Steps:
To learn more please visit
www.SSEinitiative.org
Exchanges. Policy Makers. Regulators.
Investors. Companies.
Join the Dialogue.
“I call on stock exchanges
around the world to join
this effort”.
Ban Ki-moon,
UN Secretary-General