Nasdaq’s 2021 Sustainability Report Highlights Impact for all Stakeholders
Nasdaq has released its 2021 Sustainability Report, which illustrates how the company advanced and executed its sustainability strategy amid a global pandemic and highlights Nasdaq’s sustainability impact on the wider financial ecosystem and the communities it serves. Along with the Sustainability Report, Nasdaq also published its second annual Task Force on Climate-Related Financial Disclosures (TCFD) Report, which specifically focuses on addressing risks and opportunities related to climate change.
This year’s comprehensive report aims to increase transparency around Nasdaq’s ESG journey, demonstrating its commitment to the continuous improvement in its practices and reporting.
“We achieved carbon neutrality for the fourth year in a row. Our employees gave back to their communities through almost 1,300 service hours. And we were once again recognized for our efforts by numerous third-party validators, including the Dow Jones Sustainability Index, Bloomberg’s Gender-Equality Index, and the Human Rights Campaign’s Corporate Equality Index,” said Nasdaq President and Chief Executive Officer Adena Friedman.
Through a cohesive story, Nasdaq outlines its actions on innovating for environmental sustainability and advancing governance excellence, as well as championing inclusive growth and prosperity. Most notably, some of the highlights across these three areas include:
Elevated GHG emissions reduction commitment:
- Engaged a third party to verify Nasdaq’s 2019, 2020 and 2021 emissions
- Committed to setting and submitting net-zero carbon targets with the Science Based Targets Initiative
- Achieved carbon neutrality for the fourth consecutive year
“Climate change poses fundamental threats to society as well as business, and Nasdaq believes that concerted global action is required in order to limit global warming to below the 1.5° target,” said Nasdaq Chief Financial Officer Ann Dennison. “Nasdaq’s environmental strategies are designed to both minimize the environmental impact across our own organization and operations as well as to continuously innovate in support of and alongside our clients and partners to develop marketplace solutions to help them achieve their own ESG objectives.”
Reinforced responsibility to employees:
- Continued support and expansion of Nasdaq’s Employee Action Networks, as they empower employees, drive professional development through mentorship, support their communities and provide internal and external advocacy opportunities
- Established an annual pay gap analysis, with corrective actions to take place when appropriate
- Implemented “Conscious Inclusion” training for all global managers and the executive leadership team to recognize biases and execute a practical approach to embracing diverse thoughts, beliefs and behaviors
“Guided by our purpose to champion inclusive growth and prosperity, we are committed to creating an environment that caters to all employees and cultivates growth, innovation, and collaboration,” said Bryan Smith, Chief People Officer at Nasdaq.
Advanced governance disclosures and transparency:
- Improved disclosures on policies, training programs and other initiatives, including Nasdaq’s ethics and whistleblower program
- Annualized ESG reporting, reflected updated TCFD guidance, and committed to new frameworks, such as the WEF Index
- Increased the diversity of Nasdaq’s board and board committees
“We believe in principled, ethical, and proactive governance practices, transparent disclosures, and overall board effectiveness benefits, as it not only benefits our shareholders but also our employees, clients, and the communities around us,” said Nasdaq Chief Legal, Risk & Regulatory Officer John Zecca.
Nasdaq has, in recent years, focused on developing ESG solutions for both the corporate and investor communities.
“Our reporting team utilized both our ESG Advisory Program and OneReport offerings—important components to successfully bring our reports to our stakeholders,” said Heather Shand, Director of ESG Reporting at Nasdaq.
Nasdaq believes that by establishing a dedicated reporting team, identifying and building relationships with internal key stakeholders and subject matter experts, then using that expertise to build a report, all stakeholders—from customers to communities—will have greater transparency into a company’s sustainability impact.
“Make no mistake: a more sustainable and equitable world is within our grasp. But seizing it will require a shift from commitment to action that prioritizes accountability and results,” said Friedman. “From its position at the intersection of capital markets and technology, Nasdaq is playing an important role in managing this shift for our clients, for investors, and for ourselves.”
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