London Stock Exchange opened this morning to mark the launch of a CK Capital study commissioned by Aviva Investors and Standard and Poor’s
London Stock Exchange will be opened this morning with the launch of a CK Capital study commissioned by Aviva Investors and Standard and Poor’s, which has ranked the world’s stock exchanges on the sustainability reporting practices of their listed companies.
The study, titled “Trends in Sustainability Disclosure: Benchmarking the World’s Stock Exchanges, 2013,” found that Europe performed favourably with Spain receiving top billing and eight of the top 10 spots going to other European exchanges. The rest of the top five went to Helsinki, Tokyo, Oslo and Johannesburg respectively.
But these headline figures mask a trend across emerging markets in improvements in quantitative sustainability reporting practices. The analysis indicates that emerging markets’ stock exchanges are on track to overtake those based in developed markets by 2015 in terms of the proportion of their large listings that disclose what CK Capital refers to as the seven “first generation” sustainability indicators.
The study also investigated the relationship between reporting practices and sustainability disclosure policies put forward by stock exchanges, securities regulators and governments, finding that successful practices are associated with policies that are mandatory, prescriptive and broad—what CK Capital refers to as “super policies.”
The study recommends that organizations such as the World Federation of Exchanges and the International Organization of Securities Commissions (IOSCO) engage their members on sustainability disclosure.