Mumbai, November 29, 2012
MCX Stock Exchange (MCX-SX) has signed the voluntary commitment to the United Nation’s Sustainable Stock Exchanges (SSE) initiative to promote long-term sustainable investment and improved environmental, social and corporate governance disclosure and performance among companies listed on its exchange.
With this, MCX-SX has joined the global league of six other exchanges that have committed to the UN SSE initiative.
Mr. Joseph Massey, MD & CEO of MCX-SX, said, “We are committed to market-based approaches to sustainable development. We intend to achieve inclusive and enhanced market access through knowledge and empowerment. I am sure our commitment to the SSE initiative will enhance sustainability reporting standards in India.”
This move by MCX-SX is in keeping with its broader agenda of market development, inclusive growth and enhancing transparency in stock exchanges, a press release from the exchange said.
MCX-SX has extensively campaigned for listing of exchanges in India, for greater transparency and corporate governance.
Mr. James Zhan, Director of UNCTAD's Division on Investment and Enterprise, said: "MCX-SX is a new exchange in India. They recognize the importance of sustainability issues, and want to build this into their activities from the start. We welcome this public commitment from Mr. Joseph Massey, Managing Director and CEO of MCX-SX, and we look forward to working with him and his colleagues to further promote sustainable business practices."
The other six exchanges that have so far publicly committed to the SSE initiative are NASDAQ OMX, the Brazilian stock exchange BM & FBOVESPA, Johannesburg Stock Exchange (JSE), Bombay Stock Exchange (BSE), Egyptian Exchange (EGX), and Istanbul Stock Exchange (ISE).
MCX-SX is also a founder member of Responsible Investment Research Association (RIRA), a not-for-profit initiative focused on integration of Environment, Social and Governance (ESG) factors into mainstream financial markets in India. This soon-to-be-launched investor forum will be actively contributing in the areas of policy, research and training.
The Sustainable Stock Exchanges initiative was launched by United Nations Secretary-General Ban Ki-moon and UNCTAD Secretary-General Supachai Panitchpakdi in 2009 at UN Headquarters in New York.
It is a joint initiative that is co-organized by UNCTAD, the United Nations Global Compact, the United Nations-backed Principles for Responsible Investment, and the United Nations Environment Programme (UNEP) Finance Initiative. It aims at exploring how exchanges can work together with investors, regulators and companies to enhance corporate transparency, and ultimately performance, on environmental, social and corporate governance issues, and to encourage responsible long-term approaches to investment.
The Sustainable Stock Exchanges voluntary commitment letter asks exchanges to commit to the following pledge: "We voluntarily commit, through dialogue with investors, companies and regulators, to promoting long-term sustainable investment and improved environmental, social and corporate governance disclosure and performance among companies listed on our exchange."