The World Federation of Exchanges’ Green Equity Principles were launched on 23 March 2023 (here on referred to as the Principles). The Principles set out a global framework that individual exchanges can use to establish a ‘green’ offering for listed companiesthus improving the flow of funding towards more sustainable economies. Following this, the Principles were further supplemented with Guidance on Green Equity Principles on 14 September 2023 (here on referred to as the Guidance). This Guidance supplemented the Principles and provided operational standards on how the Principles should be applied.
Following the publication of the Principles and Guidance, the WFE then launched a public consultation on both documents on 14 September 2023. The public consultation period closed on 15 January 2024. This paper provides an analysis of the responses received from from two banks, two academic organisations and one law firm. Respondents requested their answers be kept confidential. This paper therefore sets out the questions stakeholders responded to and summarizes the feedback received anonymously, as well as including the WFE’s considered response and includes changes made as a result or indicated next steps where appropriate.
The Principles were welcomed by all those who commented, underlining the timeliness of the move to set a framework of minimum criteria for the green equity designation. Discussion was, in other words, focused on detailed aspects of the Principles and the related Guidance, such as the role of governance, the measurement of revenues and investment, and whether to add in considerations other climate.