Saturday 5th September 2015
NEWS TICKER, THURSDAY, September 3rd: The Straits Times Index (STI) ended 28.3 points or 0.98% higher to 2906.43, taking the year-to-date performance to -13.63%. The top active stocks today were SingTel, which gained 0.82%, DBS, which gained 0.80%, UOB, which gained 1.40%, OCBC Bank, which gained1.13% and CapitaLand, with a 0.36%advance. The FTSE ST Mid Cap Index gained 0.55%, while the FTSE ST Small Cap Index rose 0.24% - Madrid City Hall announced it would dedicate €10m out of its 2016 budget to a "welcome plan for refugees" to include housing, integration, psychological support and legal aid, City Hall spokeswoman Rita Maestre (Ahora Madrid) said during a press conference on Thursday. Maestre said a budget had been decided upon but that specific numbers had not: "We want to welcome all those who are fleeing from war", adding that given their situation "a permanent housing solution" would be needed in the city. The Mayor of the Spanish capital, Manuela Carmena, said on Wednesday that a decision would be taken at the city government meeting today: "The city of the hug must, of course, be ready to welcome refugees" - The European Bank for Reconstruction and Development (EBRD) is joining international efforts to clean up Tunisia’s Lake Bizerte with a €20m loan and technical assistance to support the expansion and rehabilitation of the sewerage network of the Bizerte region and the rehabilitation of three wastewater treatment plants located near the lake. The EBRD’s investment is part of an integrated environmental programme aimed at de-polluting Lake Bizerte and reducing sources of pollution through investments in wastewater, solid waste and industrial effluents. This programme is labelled by the Union for the Mediterranean and is part of the Horizon 2020 Initiative, which aims to de-pollute the Mediterranean by the year 2020. The European Investment Bank is providing a €40 million sovereign loan to the programme while the European Union Neighbourhood Investment Facility is contributing a €15m grant for both capital expenditure and technical cooperation - Analysis of illicit financial flows (IFFs) by Global Financial Integrity (GFI) shows that over the period 2003-2012 the global volume of IFFs grew by more than 9% annually (. In 2012 (the most recent year for which data are available), illicit flows were estimated at close to $1trn. In response to this unfettered surge in illicit capital leaving developing nations, the UN has endorsed target 16.4 in the Sustainable Development Goals (SDGs), which commits the global community to “significantly reduce” IFFs by 2030. This UN action “represents an historic moment in development policy given that it is the first time the international community has recognized the illicit flows problem and pledged to address it,” says GFI President Raymond Baker - US Secretary of Commerce Penny Pritzker named Eduardo Leite, Chairman of the Executive Committee of Baker & McKenzie LLP, as the new chair of the US section of the US-Brazil CEO Forum. “Mr. Leite has served on the U.S. section of the CEO Forum for several years, and I am pleased that he has agreed to serve as Chairman,” said Secretary Pritzker. The new US section chair was named after the former chair, Ms. Patricia Woertz, Chairman of the Board of Directors of Archer Daniels Midland Company, submitted her resignation from the role. However, Woertz will remain a member of the U.S.-Brazil CEO Forum, and Leite will complete the current three-year term, which ends on August 13th 2016 - MarketAxess Holdings Inc. (Nasdaq:MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced total monthly trading volume for August 2015 of $75.5 billion, consisting of $43.7 billion in U.S. high-grade volume, $26.7bn in other credit volume, and $5.1 billion in liquid products volume. MarketAxess is providing both the reported and adjusted estimated US high-grade TRACE volumes on its website. The Company believes that the adjusted estimated volumes provide a more accurate comparison to prior period reporting.

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Policy intervention needed as momentum stalls on ‘sustainability’ says new Aviva Investors’ report

Monday, 18 June 2012
Policy intervention needed as momentum stalls on ‘sustainability’ says new Aviva Investors’ report Trends in Sustainability Disclosure: Benchmarking the World’s Composite Stock Exchanges, a report produced by Aviva Investors in partnership with CK Capital, reveals that while a number of European stock exchanges reflect a high level of integrated sustainability reporting from constituents, only 52 companies out of 4,001 mid large and mega caps around the world engaged in ‘complete’ first generation sustainability disclosure in 2010.  The paper has been prepared for the Sustainable Stock Exchange 2012 Global Dialogue, hosted by UNCTAD in Rio. http://www.ftseglobalmarkets.com/

Trends in Sustainability Disclosure: Benchmarking the World’s Composite Stock Exchanges, a report produced by Aviva Investors in partnership with CK Capital, reveals that while a number of European stock exchanges reflect a high level of integrated sustainability reporting from constituents, only 52 companies out of 4,001 mid large and mega caps around the world engaged in ‘complete’ first generation sustainability disclosure in 2010.  The paper has been prepared for the Sustainable Stock Exchange 2012 Global Dialogue, hosted by UNCTAD in Rio.

The report says that while the majority of the world’s mid, large and mega-caps engage in some form of first generation sustainability reporting, it is now clear that the proportion of companies voluntarily disclosing each of the first generation indicators is slowing. Steve Waygood, chief responsible investment officer at Aviva Investors, says, “Investors are increasingly demanding sustainability information from companies to inform their broader decision making, deepen the quality of market information available and ultimately the quality of our capital markets, so this decline is cause for concern. Our study shows a clear divergence across exchanges and sectors on the level of disclosure on sustainability issues and growing evidence of a slowdown in the uptake of sustainability reporting practices.  This reflects the lack of a co-ordinated reporting framework.”

“We see a real opportunity for policymakers to step in and define a common set of sustainability indicators. The Corporate Sustainability Reporting Coalition launched last month, which represents investors with assets under management of approximately $2trn, is urging all nations at Rio+20 to commit to develop an international policy framework. This framework should look to foster the development of national measures requiring, on a report or explain basis, the integration of material sustainability issues within the corporate reporting cycle of all listed and large private companies.” Doug Morrow, Vice President of Research at CK Capital and lead author of the report, adds: “This study shows that while the majority of the world’s largest companies by market capitalisation report some first generation sustainability indicators, the ‘actionability’ of this data for investors and other stakeholders is constrained by a lack of completeness, standardisation and timeliness.”



The wonder of it all is that with all the problems companies face right now in finding new business opportunities and markets that any investors are insisting on these kinds of constraints.  However, be that as it may, the report ranks the world’s composite stock exchanges* according to the sustainability disclosure practices of their listed companies.  The report investigates disclosure rates and timeliness for a range of seven “first generation” sustainability indicators:  energy, greenhouse gas (GHG) emissions, water, waste, lost time injury rate, payroll costs and employee turnover.

In a ranking of the world’s composite stock exchanges by overall sustainability disclosure, the Netherlands comes out on top, with Denmark (2), Finland (3) Spain (4) and South Africa (5) also in the top five. The Nordic countries rank particularly well with four countries appearing in the top ten. The two emerging market exchanges that score well are South Africa (5) and Brazil (9)**. 

Certain countries are also excelling in disclosure around particular “first generation” indicators with: 

Finland scoring the highest disclosure rate on four of the seven indicators: payroll data (91%), waste (83%), energy (78%) and GHG emissions (52%) South Africa has the fastest growing disclosure rate, ranking first in five of the seven indicators: water, waste, GHG emissions, employee turnover and lost time injury rate

Companies trading in Denmark are the world’s most timely sustainability reporters; 57% of all large companies on the Danish composite with a Q4 2011 financial year end had published 2011 sustainability data by 1 May 2012

Overall, financial companies had the lowest sustainability disclosure of all industries, ranking last on five of the seven indicators; energy, GHG emissions, water consumption, waste and lost time injury rate 

Utility companies came out on top in most indicators and ranked first on disclosure around GHG emissions, water consumption, waste and employee turnover

Regionally, Europe and South East Asia scored highest as being the quickest to market with sustainability data. Waygood concluded: “Markets are driven by information. If the information the market receives is short term, then these characteristics will define the way these markets operate. It is time for regulators to act.”

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