Nasdaq made progress this year in advancing its environmental, social and governance (ESG) practices. From successfully reducing its carbon footprint to zero to launching the Nasdaq Sustainable Bond Network, the company continues to achieve notable ESG milestones through new initiatives and offerings.
“Our commitment to ESG – including our carbon footprint reduction program – mirrors our commitment to our clients and the communities in which we serve,” said Evan Harvey, Global Head of Sustainability at Nasdaq. “As more clients and companies search for sustainable business products and processes, we not only try to meet that need but anticipate it. The world is changing – as are market and institutional investor expectations – and companies will continue to adapt in order to create long-term value and a meaningful contribution to all their stakeholders.”
As 2019 comes to a close, Nasdaq highlights 19 ESG initiatives and offerings from the past year, most notably expanding its ESG reporting guidelines, achieving carbon neutrality, establishing the Nasdaq Center for Corporate Governance and launching the Nasdaq Sustainable Bond Network.
Nasdaq reaffirmed its commitment to enterprise-wide ESG reporting, by publishing an updated ESG Reporting Guide, furthering its support of public and private companies globally that incorporate ESG into their existing reporting processes. The new guide includes the latest third-party reporting methodologies widely adopted by the industry.
With access to more standardized ESG reporting methodologies, companies are able to provide investors greater transparency into their corporate sustainability practices and objectives. To date, 76% of companies listed on Nasdaq’s U.S. and European exchanges report at least one ESG metric on an annual basis, according to the ESG Reporting Guide.
Nasdaq reached carbon neutrality in 2018 across all business operations through the purchase of carbon offsets and renewable energy certificates. This landmark achievement builds upon the company’s historically low carbon emissions performance over the last three years, according to Nasdaq’s Sustainability Overview.
Nasdaq Center for Corporate Governance
To accelerate the understanding of emerging corporate governance and sustainable business practices through research, Nasdaq established the Nasdaq Center for Corporate Governance in the summer of 2019.
“Our mission with the Governance Center is to create a resource for corporate leaders, investors, and stakeholders that includes the latest governance insights and actionable intelligence, thereby supporting the health of markets and economies worldwide,” said Nelson Griggs, President of the Nasdaq Stock Exchange.
Nasdaq Sustainable Bond Network
And most recently, the company launched the Nasdaq Sustainable Bond Network (NSBN), a global, publicly available web-based platform aimed to improve transparency in the market for green, social and sustainability bonds.
NSBN utilizes an open-to-all platform on which issuers can showcase their sustainable bonds and related documents and data, such as framework documents, allocation/impact reports and impact metrics based on the Nordic Public Sector Position Paper.
NSBN comes after Nasdaq formed the first Sustainable Bonds Market in 2015. The new platform enhances the sustainable bonds’ investment process by allowing investors to source detailed information on sustainable bonds for product due diligence, selection and monitoring.
“We are strong supporters, and we are looking forward to contributing to the development of the Sustainable Bond Network as we believe it will create more transparency and has the potential to simplify investment decision-making in this nascent asset class,” said Allianz Global Investors’ Chief Sustainability Officer Beatrix Anton-Grönemeyer.
To see the full list of 2019 ESG highlights and initiatives, click here.
To learn more about Nasdaq’s commitment to sustainability, please visit https://www.nasdaq.com/sustainability.