This paper provides an analysis of the drivers influencing exchanges’ focus on Environmental, Social, and Governance (ESG) efforts, along with the motivations behind their sustainability initiatives, and the development of ESG-related financial products. By contrasting data from ten years of the World Federation of Exchanges (WFE)’s annual Sustainability Surveys against various environmental, economic, and cultural factors, we test which of these factors correlate with ESG initiatives across 66 security exchanges from 54 jurisdictions. The findings show that ESG advancements are shaped by a complex interplay of the jurisdiction’s governance quality, environmental conditions, economic infrastructure, and cultural dimensions, providing important guidance for tailoring ESG strategies to the unique contexts of each jurisdiction.
