Ceres initiative to reform stock exchange sustainability reporting

The sustainability advocacy group Ceres is leading an initiative to lobby for the integrating of environmental disclosure requirements into global stock exchange listings.

The proposed changes would enable investors to compare the sustainability of companies and lead to engagement with global stock exchanges via the World Federation of Exchanges (WFE).

The initiative was announced by Ceres in collaboration with fund manager BlackRock and other major institutional investors. Over 100 leading investors from six continents have participated in the proposal.

It is hoped that implementing a scheme of this nature will help to establish a more even playing field and would also provide investors with the information they need to make informed decisions.

Gwen Le Bere, vice-president of corporate governance and responsible investment at BlackRock, said, “Cross boarder collaboration by stock exchange will help shift public companies towards more comparable and meaningful disclosure of environmental, social and governance (ESG) risk factors. This will enable investors to more accurately value companies and make better informed investment decisions.”

Taking ESG factors into consideration can give additional security to investors in the long-term with previous research linking sustainability to investment stability.

The recommendations made by the group will now be formally submitted to stock exchange members of the WFE, in conjunction with the launch of an exchange comment period that will run for several months.