Asset Pools : Equities
- Sustainability disclosure: Harmonizing and strengthening stock market requirements for reporting on environmental performance and risks.
- Deepen the use of sustainability data by investment analysts and in benchmarks and indices by encouraging greater transparency in both equity analysis and indices.
- Upgrade the capital-raising function of equity markets for example by reducing the registration costs for ‘green IPOs’ and ensuring regulations enable innovative, infrastructure investment vehicles such as green infrastructure investment trusts (yieldcos).
- Mobilize more private capital into infrastructure. Review financial regulations to remove unintentional constraints on investments in sustainable infrastructure. Optimise “blended finance” approaches to ensure that good value is obtained for public spending, and to develop best practice and expertise.
Download the policy summary: [AR] [CH] [EN] [ES] [FR] [PT] [RU] Download the individual chapters: Chapter 1: Mapping the momentum | Chapter 2: Harnessing financial technology for sustainable development | Chapter 3: Measuring performance | Chapter 4: Steps towards transformation Our follow-up annual report reveals a doubling in policy actions over the past five years to align the global financial system with sustainable
The report, a companion to the second edition of “The Financial System We Need”, examines how the international financial standards currently relate to the goals of sustainable development and explores opportunities for better alignment as a way to promote greater stability, resilience and fairness to the financial system. The key messages are: Financial standards have
This paper explores whether the extent to which Regulation 28, CRISA and JSE Integrated Reporting Standards (referred to as governance policy innovations) have influenced the level of investment that integrates Environmental, Social and Governance (ESG) in its decision making process. It finds that while governance innovations have increased actors’ awareness about interrelationship between ESG factors and financial performance it
This report highlights experience from France in improving the integration of sustainability issues into financial decision-making. A key area of focus has been on improving information and market analysis. Environmental, social and governance (ESG) reporting requirements were first introduced in the New Economics Regulation law of 2001, and strengthened by the 2010 ‘Grenelle II’ law and 2015 the
Electronic markets and high-frequency trading (HFT) now comprise over half of all securities trading on both public “lit” exchanges and “unlit” dark pools and electronic platforms.This paper documents the proceedings of an expert seminar, chaired by Hazel Henderson. It includes contributions from: Hazel Henderson, Ethical Markets Media; John Ramsay, IEX; Dave Lauer, KOR Trading; Robert Zevin, Zevin
Equity markets have a significant share in financial markets, with institutional investors and market-capitalization weighted indices playing a substantial role. Today’s landscape of market-capitalization weighted indices favours high-carbon sectors and creates biases against green, low-carbon technologies. As a result, institutional investors have lower exposure to the green economy, which, in the context of the transition
Infrastructure is often referred to as the backbone of the global economy and plays a fundamental role in societies by enhancing the quality of life and increasing productivity. In addition to its effects on society and the economy, infrastructure can have significant impacts on the environment, depending on the choice of infrastructure. Approximately 75% of
This paper provides an outline of South Africa’s financial sector, the environmental and social issues it faces, the response of government and financial regulators and the extent to which has resulted in measurable sustainable investment flows. In South Africa environmental, social and governance (ESG) considerations appear on the agenda of strategic discussions and are part of the
An India Advisory Council of the UNEP India Inquiry was convened by the Federation of Indian Chambers of Commerce and Industry (FICCI). This report highlights key proposals emerging from their discussions for aligning the Indian financial system with sustainability. In the Indian context, they call for development of a more robust and resilient ‘sustainability-oriented market framework’ focused
The US financial system is undoubtedly among the largest, most innovative and most sophisticated in the world. It is also clear that this is both a benefit and an impediment to non-governmental investment in sustainability and inclusiveness. To date, the actual investment in infrastructure and sustainability does not meet current needs, especially those related to maintaining
- How Do The Capital Markets Undermine Sustainable Development? What Can Be Done To Correct This?
Waygood, S (2011). Journal of Sustainable Finance and Investment. 1:1, 81-87
- Best Practice Guidance For Policymakers And Stock Exchanges On Sustainability Reporting Initiatives
UNCTAD (2013). Note prepared by the UNCTAD secretariat TD/B/C.II/ISAR/67. Geneva: UNCTAD.
- Sustainable Stock Exchanges Initiative: Report on Progress
Sustainable Stock Exchanges Initiative (2014).
- Kay Review of Equity Markets
Kay, J. (2012).
- Measuring Sustainability Disclosure: Ranking the World’s Stock Exchanges
Corporate Knights Capital (2014). October 2014.
- A Roadmap for Sustainable Capital Markets
Aviva (2014). Aviva.