The World Federation of Exchanges (WFE) has published its 2024 Sustainability Survey, marking the eleventh edition of its annual review tracking progress among stock and derivatives exchanges worldwide on sustainability initiatives. With responses from 57 exchange groups, the survey offers a detailed snapshot of the industry’s evolving engagement with environmental, social, and governance (ESG) issues.
Rising engagement across the board
Sustainability engagement continues to grow, with exchanges participating in an average of 10.5 initiatives, up from 9.7 in the previous year. Three exchanges reported involvement in as many as 17 initiatives, underscoring a deepening commitment to sustainability agendas.
Climate action and transition planning
A total of 22 exchanges have either published or are developing transition plans, the majority of which are initially focused on climate-related objectives. This aligns with growing pressure from investors, regulators, and broader market forces to enhance climate disclosures and support net-zero goals.
Data gaps and other barriers
While investor demand, reputational considerations, and regulatory expectations are key motivators for sustainability actions, the most frequently cited barrier remains a lack of reliable data. Other challenges include limited resources, economic uncertainty, and shifting political landscapes.
Progress on UN SDGs and gender equality
The majority (75%) of respondents reported aligning with at least one of the United Nations Sustainable Development Goals (SDGs), with notable focus on gender equality, decent work, responsible consumption, climate action, and partnerships. Female representation among exchanges stands at 25% on boards, 32% in senior leadership, and 42% across total staff. Meanwhile, 41% of exchanges surveyed have set gender diversity targets.
For listed companies, 42% of responding stock exchanges monitor the presence of women on boards, and 30% either have or plan to implement targets to promote boardroom diversity.
Disclosure and standards adoption
Nearly 70% of exchanges now report their carbon emissions, and of these, 72% include all three scopes of greenhouse gas emissions. While global standards like GRI and ISSB are widely supported, their implementation within exchanges’ own disclosure frameworks remains limited.
Tackling greenwashing and expanding product offerings
About half of respondents operate in jurisdictions with laws addressing greenwashing. Several exchanges also align with the WFE’s Green Equity Principles, a pioneering global framework for credible classification of green equities.
Sustainability-related financial products are now offered by 82% of exchanges, with green bonds and sustainability indices being the most common. Dedicated listing segments for sustainable bonds, as well as growth in carbon markets and sustainability-themed derivatives, reflect ongoing innovation.
Path ahead for sustainable finance
The 2024 survey highlights a clear trend: global exchanges are expanding their role in driving sustainable finance. Despite challenges around data and resources, exchanges are continuing to innovate, collaborate, and embed ESG principles into the structure of capital markets.
