New guidance issued on Wednesday from the World Federation Of Exchanges (WFE), which serves as the global industry group for exchanges and central counterparties, aims to help exchanges enhance the reporting of companies’ environmental, social and governance (ESG) practices so that investors receive the necessary insight on which they could take action.
“We hope the provision of greater guidance around report preparation will lead to improved, decision-useful information for investors,” said Siobhan Cleary, head of research and public policy at the WFE, in a statement. “We would, however, caution against ESG disclosure being viewed as an end in itself; instead, it should be seen as part of a toolkit used by exchanges, issuers and investors in their drive for greater market transparency.”
The revised guidance stresses the importance of exchanges focusing on ensuring that companies are providing investors with relevant, useful information that informs their investing decisions. This also provides greater guidance around ESG reporting and aims to incorporate recent developments, such as the United Nations’ sustainable development goals and the recommendations from the task force on climate-related financial disclosures.
“[The] revised documents will help even more exchanges to promote better ESG disclosure, as part of wider efforts to create a sustainable and inclusive future,” said Nandini Sukumar, CEO of the WFE, in a statement.