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NEWS TICKER: JULY 22nd 2016: Apple Inc is planning to open its first Apple Store in Taiwan, a move that comes after the U.S. technology giant raised $1.38 billion in a bond offering last month on the island that is home to many companies in its supply chain -- Taiwan stocks fell in the Asian session today after hitting a more than one-year high in the previous session, tracking losses in overseas markets. The main TAIEX index was down 0.4% at 9,019.87, after closing 0.5% higher in the previous session. Taiwan's export orders from China, in data issued earlier this week, showed slippage in June, hurt by weaker demand for displays, though not by as much as expected. Even so, the Taiwan dollar softened TAD0.019 to TAD32.079 per US dollar - Phillip Capital Group, an Asian financial services provider with $30bn 3 in assets under custody and management, has appointed BNP Paribas Securities Services to service its Singapore-based funds. BNP Paribas Securities Services is a global custodian with USD 9 trillion in assets under custody. Phillip Capital Management (S) Pte Ltd (PCM) has migrated its largest SGD money market fund to BNP Securities Services Singapore. This will help the company enhance operational efficiency and fulfil its regulatory requirements. For example, the company will be able to manage, track and report on its funds in a consistent and timely fashion. The long-term benefits will enable a standardised and scalable approach to custody services being extended into other locations for PCM. Phillip Capital Management (HK) Ltd is also working with BNP Paribas Securities Services to launch a fund in Hong Kong -- Following the event strewn Republican Convention this week, next week it is the turn of the Democrats. The Democratic National Convention is set to take place in Philadelphia from July 25th to 28th. The event is scheduled to be held at the Wells Fargo Center -- China's CSI 300 index and the Shanghai Composite both slipped about 0.5% in the Asian session today, with losses of around 1% for the week. Japan's Nikkei 225 closed down 1.1%, dragged down by the yen's 1% rally on Thursday – a trend that has been apparent all year. The index is still up 0.8% in a week in which it touched an eight-week high thanks to an initially weaker yen and expectations of fiscal and monetary stimulus, though in an interview with BBC radio this week, the Bank of Japan said that it did not believe in ‘helicopter money’ and that its current strategy was adequate to lift the economy out of its funk. The central bank’s next policy decision is expected on July 29th

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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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