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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/