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A new database launched today by UN Sustainable Stock Exchanges (UN SSE) shows that 69 stock exchanges globally are taking actions in support of enhancing climate-related financial disclosures in their markets. A total of 69 stock exchanges were found to be acting on at least one of the five activities. The most common action taken by stock exchanges engaging with this topic was adding the TCFD’s recommendations to their ESG reporting guidelines for their markets. While 40 stock exchanges are referencing the TCFD recommendations in their ESG reporting guidelines, three stock exchanges have further provided climate-specific disclosure guidelines (HKEX, JSE and LSEG). The SSE’s Model Guidance on Climate Disclosure makes a case for climate-specific disclosure guidelines given the unique material risks and opportunities that result from climate change. To enhance efforts aimed at supporting issuers aligning their reporting practices with the TCFD, stock exchanges are also increasingly providing training for their markets. At the time of publication, 33 stock exchanges had arranged training on TCFD-recommended disclosures through a joint-initiative launched by the UN SSE, IFC and CDP to provide CPD certified training on climate-related financial disclosures. The free training was made possible by donor support from IFC and Bloomberg Philanthropies. For more information, visit our TCFD-training page here.
Key Database Findings (For database methodology visit the database webpage here) - 69 stock exchanges acting to enhance transparency on climate-related risks and opportunities - 1 exchange conducted all five climate transparency activities (LSEG) - 5 exchanges have implemented four of the five activities (Bolsa de Santiago, HKEX, Bursa Malaysia, Singapore Exchange, JSE) - 24 exchanges have only implemented one of the five activities tracked - 7 exchanges are TCFD Supporters, but have not implemented any other activities to support climate-related disclosure in their market - 11 exchanges have made use of the TCFD recommendations for their own disclosure practices, but are not yet official TCFD Supporters In addition to guiding their market on how to disclose climate-related information in their annual reporting package for investors, 36 stock exchanges are official TCFD supporters and 30 stock exchanges have aligned their own disclosure practices to the TCFD. Of those exchanges that support the TCFD by becoming official supporters, seven have not yet implemented additional activities such as guidance or training. Contrarily, 11 stock exchanges have started to use the TCFD recommendations for their own reporting practices, but have not yet publicly become formal “TCFD supporters” (which can be done on the TCFD website here). While many exchanges are just starting out on this topic, with 24 of the 69 exchanges only engaging on one of the five activities, there are five exchanges that have already initiated four of the five activities, and one exchange that has all five activities underway. The SSE congratulates the London Stock Exchange Group for its leadership having achieved all five activities and encourages all exchanges to continue to develop their engagement on climate-related activities for the achievement of the Paris Agreement.
How to get started - 5 steps to support the TCFD recommendations The UN SSE provides a number of resources that exchanges can use to engage on climate. Exchanges that want to further enhance their support for climate-related disclosures in their markets are encouraged to do the following: