The 24 institutional investors [1] asked for sustainability reporting by listed companies.
The move is part of a broader collaborative engagement initiative launched by Aviva and facilitated by the UN-backed Principles for Responsible Investment (PRI) in 2008. It aims to encourage stock exchanges to consider how to improve the quality of sustainability reporting by the companies that list on their exchange. [2] ESG Based on Bloomberg data, the letter also ranks individual listing authorities on a sustainability league table that assesses the level of ESG reporting by listed companies
• On the top we have : Euronext Paris, Tokyo Stock Exchange, Helsinki, Euronext Amsterdam, Euronext Lisbonne et Borsa Italiana.
• At the bottom we have: Australian Stock Exchange, NASDAQ
GS, Korea Exchange, Santiago Stock Exchange et Philippine Stock Exchange.
Aviva Investors is in favor of a listing requirement for companies to consider how responsible and sustainable their business model is, and put a forward-looking sustainability strategy to the vote at their AGM.
Aviva Investors London CEO Paul Abberley said: "Markets are driven by information. A lack of information as a result of limited or non-disclosure of ESG data makes it difficult for long-term investors such as us to assess the wider ESG risks and opportunities associated with a company. "We believe that stock exchanges can play a crucial role in helping to create more sustainable global capital markets because of their ability to directly influence and monitor the operations and strategy of companies seeking to access the equity markets. This can only be a good thing for investors."
Georg Kell, executive director, UN Global Compact, a key supporter of the initiative, adds, “Many global companies understand that long-term shareholder value is enhanced by both embedding sustainability into their long-term strategy and by disclosing fully their progress. Only when investors have business-relevant information at their fingertips, will they be able to assess one company relative to its peers and allocate capital accordingly. Stock exchanges now have a significant role to play in taking obvious and important next steps to create truly sustainable capital markets.”
James Zhan, director division on investment and enterprise, UNCTAD (UN Conference on Trade and Development), the organizer of last year’s sustainable stock exchange event at the UNCTAD World Investment Forum in, notes, “Good quality ESG reporting among large companies is not uncommon, but the information being reported lacks comparability and usefulness. This investor initiative demonstrates the strong market demand for standardized ESG reporting and greater attention to sustainable development. Stock exchanges can play an important role in mainstreaming best practices nationally, and contributing to international efforts to harmonize ESG disclosure.”
