Executive Summary
The WFE Sustainability Survey for 2024 is the eleventh annual edition of this comprehensive review of WFE members and affiliates, including stock and derivatives exchanges, from developed to frontier markets. The survey aims to capture the progress and achievements of the exchange industry in its engagement with Sustainability issues as well as the challenges it faces in achieving its sustainability goals. A total of 57 exchange groups responded to the survey.
Key highlights include:
Broad participation in sustainability initiatives: Engagement in sustainability initiatives continues to deepen, with the average number of initiatives per exchange rising from 9.7 to 10.5. Three exchanges reported involvement in as many as 17 initiatives.
Transition planning and climate action: 22 respondents reported having published or developing transition plans, with most focusing primarily on climate-related factors in the first instance.
Motivations and barriers: Investor demand, market reputation, and regulatory pressure remain top drivers of sustainability engagement. The most cited obstacle is the lack of reliable data, followed by lack of resources, business and economic concerns and the changing political landscape.
UN SDGs integration: 75% of exchanges that responded engage with at least one of the UN Sustainable Development Goals (SDGs), particularly Goals 5 (Gender Equality), 8 (Decent Work), 12 (Responsible Consumption), 13 (Climate Action) and 17 (Partnerships).
Gender equality progress: According to respondents, female representation averages 25% on boards, 32% in senior management, and 42% across workforces. Approximately 41% (23/56) of respondents have gender targets. The survey also shed light on gender equality in businesses listed on stock exchanges. 20 (41.67%) of the 48 stock exchanges that responded to the question on issuers reported that they track the representation of women on the boards of their listed companies. Meanwhile, 30% (15/50) of respondents have or intend to set targets to encourage more boardroom diversity.
Robust sustainability disclosure frameworks: 68% of exchanges report carbon emissions, with 72% of those covering all three GHG scopes. The GRI and the ISSB standards garner the highest level of support, but only by a small percentage have implemented the standards in their own requirements and practices so far.
Combating greenwashing: Nearly half of respondents’ jurisdictions have legislation addressing greenwashing. Several respondents have designations that comply with the WFE’s Green Equity Principles, which provide a pioneering global framework for credible green equity classification.
Sustainability products and market innovation:
82% of responding exchanges offer sustainability-related products, predominantly green bonds and sustainability indices.
Dedicated listing segments for sustainable bonds are common, as are sustainability-themed derivatives and carbon markets.
Exchanges are increasingly designing products to support low-carbon transitions and enhance transparency.
The 2024 survey reflects strong and expanding commitments among exchanges to play an active role in promoting sustainable finance. Despite ongoing challenges, exchanges continue to innovate and collaborate, further embedding sustainability into the fabric of global capital markets.
