10
The Direction towards Sustainability
ESG
Trends
In 2015 the United Nations announced its Sustainable Development Goals
1
(SDGs)
underlining the importance of sustainable development embracing economic, social
and environmental dimensions. It reflects the global community’s endeavor to strike
a balance in economic, social and environmental development aspects.
“The capital market”
sector can play an important role
to achieve SDGs steering the economic, social and
environmental development of capital markets worldwide,
especially those included in the UN Sustainable Stock
Exchanges (SSE) Initiative in line with the five elements
of SDGs, as follows:
1. Dialogue:
A practical process to communicate
with stakeholders continuously, a key approach to
cooperation which can drive the capital market
towards sustainability.
2. Sustainability products:
Investment product
development that takes environmental, social and
governance (ESG) aspects into consideration, such as
sustainability indices and green bonds.
3. Listing requirements with ESG criteria:
Screening
securities with listing requirements on ESG information
disclosure.
4. ESG reporting guidance:
Encouraging listed firms to
disclose ESG information for investors’ decision-making.
5. Joining a global partnership:
Participating in
an international sustainability alliance or network
to exchange ESG knowledge and promote ESG
practices.
1
www.un.org/sustainabledevelopment/sustainable-development-goals/