09:08 | 31/10/2015 Finance - Banking
(VEN) - The Hanoi Stock Exchange (HNX) said that they would issue environmental, social and governance (ESG) guidance to listed companies next year in order to ensure the sustainable development of the country’s capital markets.
Photo: Can Dung
Investors have seen sustainable development as a key factor leading to their investment decision-making, while information transparency in terms of ESG factors from listed companies is a core need for the sustainable development of the securities market.
This move came following the United Nations Sustainable Stock Exchanges (SSE) initiative on August 9 in an effort to promote information transparency in the global capital markets. The issuing of ESG guidance has engaged the interests of stock exchanges of many countries, including the Hanoi Stock Exchange.
A Singapore Exchange representative said that financial reports focusing on trade and production activities were regularly announced by listed companies, while sustainable development reports remained new. This report has attracted the attention of investors as it explains how to achieve financial results, avoid risks and make the most of opportunities. Promoting information transparency associated with governance solutions from sustainable development reports will create trust for the capital markets. In addition, ESG guidance will encourage the participation of stock exchanges and securities markets.
The issuing of ESG guidance to listed companies is being implemented on a large scale via the Allianz Global Investors, encouraging the World Federation of Exchanges’ members and SSE’s partners to create the sustainable and more transparent investment environment by practical activities.
Allianz Global Investors’ Sustainability Research Analyst Marissa Blankenship said that stock exchanges have played a key role in improving quality of financial reports and governance criteria. Stock exchanges are able to have a huge impact on stabilizing capital markets as a part of moves towards sustainable development.
The HNX officially became an SSE partner at the Asia-Pacific Forum on Sustainable Development 2015 took place in Thailand on May 18, making a commitment to strengthen investment and ensure the sustainable development of the domestic and global capital markets. To realize its commitment, the HNX’s leaders said that they would issue ESG guidance to listed companies by the end of next year on a basis of reference to the SSE’s model with adjustments to be suitable for legal regulations in terms of information publication and actual situation in Vietnam.
The HNX intends to introduce a roadmap for the application of ESG guidance, contributing to improving the quality of listed companies and making the securities market more sustainable and attractive to foreign investors.