Episode 12: The Sustainable Stock Exchanges Initiative

Sustainability in Motion Podcast – Episode: Sustainable Stock Exchanges Initiative

Hosts:

• Matt Orsagh, Chief Content Officer at ED4S
• Maria Maisuradze, Founder and CEO at ED4S

Guests:

• Tiffany Grabski, Head of SSE Academy
• Anthony Miller, Coordinator of the Sustainable Stock Exchange (SSE) Initiative

Episode Focus:
This episode explores the Sustainable Stock Exchanges (SSE) initiative’s role in advancing sustainable finance and how the SSE Academy supports education and training in sustainability for exchanges and market participants globally.

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Key Takeaways:

1. Overview of SSE and SSE Academy

   • Launched in 2009 by the UN, the SSE works with over 130 stock exchanges worldwide to promote sustainable finance. The SSE Academy provides free market education to help exchanges and market participants understand and implement sustainability practices.

2. Mandatory ESG Disclosure and Reporting Trends

   • There is a global trend towards mandatory ESG disclosure, with 38 markets now requiring sustainability reporting. Many exchanges align their requirements with standards like IFRS, GRI, and the European Sustainability Reporting Standards (ESRS), streamlining ESG reporting globally.

3. Consolidation and Alignment of Standards

   • The IFRS Foundation’s integration of climate and sustainability reporting standards helps companies reduce the “alphabet soup” of ESG requirements. This consolidation supports global alignment, enabling companies to navigate sustainability reporting more effectively.

4. The Role of Exchanges in Capacity Building

   • Stock exchanges are uniquely positioned to promote sustainable practices through market education. The SSE Academy has trained over 30,000 participants globally, helping exchanges meet sustainability demands without additional costs.

5. Challenges and Opportunities in Listing

   • While listing is complex and resource-intensive, exchanges provide guidance to help companies meet ESG expectations. The SSE offers tools and guidance on ESG best practices, benefiting listed and private companies that engage with listed entities.

Conclusion:
The SSE initiative plays a crucial role in advancing sustainable finance by building capacity, aligning standards, and reducing barriers to ESG compliance, helping stock exchanges worldwide to promote sustainable practices effectively.

 

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Welcome to the Sustainability in Motion Podcast!

Matt Orsagh:
Hey, everyone! Welcome to the Sustainability in Motion podcast, brought to you by ED4S. We focus on the fast-moving world of sustainability to help the business community better understand and address the environmental challenges we face. I’m Matt Orsagh, Chief Content Officer at ED4S.

Maria Maisuradze:
Hi, everyone! I’m Maria Maisuradze, Founder and CEO of ED4S. It’s great to be with you today.

Matt:
Today, we’re talking with Tiffany Grabski, Head of the SSE Academy, and Anthony Miller, Coordinator of the Sustainable Stock Exchanges (SSE) Initiative. We’ll discuss the work of the SSE and its Academy in promoting sustainable development.

Tiffany, Anthony, welcome to the podcast!

Anthony Miller:
Thanks for having us, Matt.

Tiffany Grabski:
Great to be here!

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What is the SSE and SSE Academy?

Matt:
To kick things off, can you explain what the SSE and the SSE Academy are, and how they promote sustainable development?

Anthony:
Sure, Matt. The Sustainable Stock Exchanges (SSE) Initiative was launched in 2009 by the UN Secretary-General. Think of it as a sibling initiative to others like the UN Global Compact, which works with companies, the Principles for Responsible Investment (PRI) with asset managers, and UNEP FI with banks and insurers. Stock exchanges didn’t fit into any of these categories, so the SSE was created to fill that gap.

The SSE is a partnership program involving the Global Compact, PRI, and UNEP FI. We work with stock exchanges because they occupy a unique position in the market, sitting at the intersection of issuers, investors, regulators, and standard-setters. This gives them a powerful role in influencing market practices to promote sustainable finance and the UN’s Sustainable Development Goals (SDGs).

As for the SSE Academy, it’s our market education arm. Stock exchanges have always provided market education because being a listed company is complex—there are compliance rules, financial accounting standards, and governance requirements to follow. The Academy helps exchanges incorporate sustainability priorities into their existing education programs. With over 130 exchanges in our network, many don’t have in-house expertise on every sustainability issue, particularly in emerging markets. The SSE Academy helps bridge that gap by providing universal, standardized training accessible to all members.

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Growth of the SSE Initiative

Matt:
That’s fascinating. You mentioned the SSE started in 2009. How many exchanges were involved at first, and how has it grown?

Anthony:
We began with just five founding exchanges. Growth was gradual at first but picked up momentum as exchanges recognized the importance of sustainable finance. Today, most of the world’s stock exchanges are SSE members, representing over 100 markets globally.

Exchanges are uniquely positioned to respond to societal and market pressures, such as investor demand for sustainable finance products. This demand, combined with exchanges’ willingness to innovate, has driven our expansion.

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The Role of Stock Exchanges in Promoting ESG

Maria:
I discovered the SSE Initiative last year and was struck by the critical role stock exchanges play in sustainability. Listing on a stock exchange essentially provides companies with a license to access significant capital. Some exchanges even require ESG disclosures as part of their listing criteria.

I read that 38 exchanges globally now mandate ESG disclosure. Could you share more about the types of disclosures required and any trends you’ve observed?

Anthony:
That’s a great question, Maria. We track mandatory ESG disclosure requirements across our online database, which is the most comprehensive in the world. Ten years ago, very few markets mandated ESG disclosure—today, 38 do.

The specifics vary. Earlier rules were more general, asking for sustainability reports without detailed guidelines. Over time, rules have become more precise. For example, the EU now requires disclosures aligned with the European Sustainability Reporting Standards (ESRS), which cover environmental and social issues comprehensively.

Globally, there’s a trend toward adopting international standards. The three major frameworks gaining traction are GRI, IFRS S1 and S2, and ESRS. These frameworks are aligning markets worldwide, creating consistency and reducing confusion for companies.

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Impact of Consolidating Standards

Matt:
How does the consolidation of standards like IFRS S1 and S2 affect your work at the SSE Academy and the broader markets?

Tiffany:
Consolidation is a game-changer. Many of these standards aren’t new—they build on existing frameworks like GRI, TCFD, and others. By bringing them together, we’re addressing the long-standing “alphabet soup” problem that left companies unsure where to start.

This alignment simplifies reporting and forces internal collaboration within organizations. Sustainability reporting is no longer siloed; it involves multiple departments working together, which enhances the quality and value of the data.

At the SSE Academy, we focus on educating market participants about these consolidated standards. This education is critical because compliance isn’t just a regulatory checkbox—it’s about creating real value.

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Capacity Building Through the SSE Academy

Maria:
Capacity building is close to our hearts at ED4S. Could you share more about the SSE Academy’s training programs, the topics covered, and who participates?

Tiffany:
The SSE Academy launched in 2021 in response to demand from exchanges. Our first program focused on TCFD, and since then, we’ve expanded to topics like IFRS S1 and S2, GRI, gender equality, and biodiversity through TNFD.

To date, we’ve trained over 30,000 market participants from 145 countries through 160 workshops and nearly 400 hours of training. These workshops are hosted by exchanges and are free for their stakeholders, ensuring accessibility.

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Challenges for Private Companies and Capacity Building

Maria:
Many companies stay private to avoid the complexities of listing, and sustainability reporting might seem like an additional burden. Do you think regulations like ESRS, which apply to private and public companies, level the playing field?

Tiffany:
Absolutely. Whether listed or private, companies are part of value chains that demand sustainability data. Non-compliance could limit market opportunities.

Listing remains an excellent way to raise capital and gain protections, especially when disclosures are required by regulation. These regulations provide clarity, reduce greenwashing risks, and encourage transparency.

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Other Tools Provided by the SSE

Matt:
What other tools and resources does the SSE offer its members?

Anthony:
We operate on three pillars: consensus building, research and normative guidance, and technical assistance.

1. Consensus Building:
   We host high-level CEO roundtables and multi-stakeholder meetings to align exchanges, regulators, investors, and issuers.

2. Normative Guidance:
   We develop best practice guides on topics like green finance, gender equality, and climate disclosure.

3. Technical Assistance:
   This includes model guidance templates that exchanges can adapt to their markets. For example, many exchanges start with voluntary ESG guidelines and later transition to mandatory rules.

We also track progress through benchmarking and data-driven publications. Our work is demand-driven, based on the real-world needs of exchanges.

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Matt:
That’s incredible work. Tiffany and Anthony, thank you for joining us and sharing such valuable insights.

Tiffany:
Thanks for having us!

Anthony:
It was a pleasure.

Matt:
To our listeners, if you’d like to connect, we’re all available on LinkedIn or through ed4s.org. Thanks for tuning in, and we’ll see you next time!