THE WORLD FEDERATION OF EXCHANGES PUBLISHES ANNUAL SUSTAINABILITY SURVEY;

23 April 2019

Hamilton, Bermuda – April 23, 2019: THE WORLD FEDERATION OF EXCHANGES PUBLISHES ANNUAL SUSTAINABILITY SURVEY; the full filing stated the following;

PRESS RELEASE

THE WORLD FEDERATION OF EXCHANGES PUBLISHES ANNUAL SUSTAINABILITY SURVEY

London, Tuesday 23 April 2019 - The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, today published the results of its fifth annual Sustainability Survey for the 2018 calendar year.

The WFE sustainability survey captures the nature and extent of member engagement with Environment, Social and Governance (ESG) issues in both developed and emerging markets. By carrying out this survey on an annual basis, the WFE is also able to track the evolution of members’ engagement with ESG issues.

ESG is a core strategic mandate and principle of the WFE and this year’s survey mapped exchange activities to the WFE’s Sustainability Principles for the first time. These principles, published in October 2018, state that exchanges will: work to educate participants in the exchange ecosystem about the importance of sustainability issues; promote the enhanced availability of investor relevant, decision-useful ESG information; actively engage with stakeholders to advance the sustainable finance agenda; provide markets and products that support the scaling-up of sustainable finance and reorientation of financial flows; and establish effective internal governance and operational processes and policies to support their sustainability efforts.This year’s survey also expanded the section on the United Nations Sustainable Development Goals (UN SDGs) to examine how exchanges are engaging with these targets.

Key highlights of the survey include:

Nearly all exchanges (90%) reported having some form of ESG initiative, an increase on 2017’s 88%.
Many exchanges looked at the UN Sustainable Development Goals - 73% of exchanges with some form of ESG initiative reported having UN SDG-specific initiatives, with education and information programmes for listed companies on the SDGs being the most common.
Exchanges continue to be the primary drivers of ESG disclosure in markets where reporting is encouraged or required, with 77% of exchanges fulfilling this function.
Although two thirds of responding exchanges encourage or require ESG disclosure, there is still no consistent global standard for ESG reporting.
While there appears to be growing investor demand for ESG disclosure, the level of this demand is still considered to be limited in many markets.
Sustainability indices remain the most commonly offered products, but there has been considerable growth in ESG-related bond offerings, with 73% of exchanges with sustainability products offering green bonds in their markets.

Nandini Sukumar, Chief Executive Officer, WFE said: “It has been five years since we conducted our first annual Sustainability Survey and we are delighted to report growing engagement with this topic among our membership. This is evident from the increase in the number of exchanges participating in ESG initiatives and in the growth in sustainable finance related product offerings. We are confident that exchanges will continue to play an important role in the sustainable finance arena.”

You can read the full survey here.

The survey was conducted in the first quarter of 2019 by the WFE and covers the 2018 calendar year. The survey was compiled from the responses of 57 WFE members and 6 affiliates. The survey focused on four key areas: exchanges and their sustainability initiatives; the UN SDGs; transparency and reporting; and sustainability products. The results were compiled from questionnaire responses supplied by exchanges and their clearinghouses.

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About the World Federation of Exchanges (WFE):

Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 37% are in Asia-Pacific, 43% in EMEA and 20% in the Americas. WFE exchanges are home to nearly 48,000 listed companies, and the market capitalisation of these entities is over $70.2 trillion; around $95 trillion (EOB) in trading annually passes through the infrastructures WFE members safeguard (at end 2018).

The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators. Its free statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.

With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.

About the WFE’s Sustainability Working Group (SWG):

The SWG was established in May 2014 and is a member-led forum for exchanges to decide industry best practice on the topic of ESG, this includes the development and formation of policies, policy positions and consultation responses. At the publication of this report, the SWG had 39 members, and together, the group clarifies and shapes the industry's view on ESG issues, as well as providing a platform for learning, the development of standards and advocacy. The SWG contributed to the development of the WFE Sustainability Principles, an important development that demonstrates the WFE members’ commitment to fostering and promoting the sustainable finance agenda. The SWG has also produced an ESG Recommendations and Guidance document, which included setting out 33 key ESG performance indicators for exchanges to consider in relation to sustainability disclosure in their own markets.

For more information, please contact:

Weronika Slomka
Communications Associate, The World Federation of Exchanges
Email:wslomka@world-exchanges.org
T: +44 20 7151 4128

Twitter: @TheWFE
LinkedIn: The World Federation of Exchanges

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For more information on the Bermuda Stock Exchange (BSX), contact Nancy Vieira at 1-441-292-7212 or nvieira@bsx.com. Information is also available at www.bsx.com and on Bloomberg at BSX the BSX was founded in 1971 and is the world’s leading fully electronic offshore securities market. The BSX list equities, mutual funds and bonds, depository receipts and derivative warrant securities. The BSX is a full member of the World Federation of Exchanges (WFE) and an affiliate member of IOSCO. In addition, the BSX is recognized by the U.S. Securities & Exchange Commission (SEC) as a Designated Offshore Securities Market under Regulation S; The Financial Services Authority in the UK as a Designated Investment Exchange; HM Revenue & Customs in the UK as a Recognized Stock Exchange; The Bermuda Monetary Authority as a Recognised Investment Exchange and as an Approved Stock Exchange under Australia’s Foreign Investment Funds (FIF) taxation rules.