Four Southeast Asian Stock Exchanges Agree to Build Joint ESG Ecosystem – Fintech Singapore

by Fintech News Singapore February 19, 2024

Four major Southeast Asian stock exchanges – Bursa Malaysia, Indonesia Stock Exchange (IDX), the Stock Exchange of Thailand (SET), and Singapore Exchange (SGX Group) – have united to form the ASEAN Interconnected Sustainability Ecosystem (ASEAN-ISE).

This initiative aims to promote sustainable development within the ASEAN region by integrating common environmental, social, and governance (ESG) metrics into their data systems.

The collaboration was formalised during a recent meeting where the exchanges agreed on a governance structure and operational plan for the sustainability ecosystem, with Bursa Malaysia taking on the role of the ASEAN-ISE Secretariat to oversee the initiative’s implementation.

The ASEAN-ISE seeks to create an integrated ESG ecosystem to support sustainable development, enable cost efficiencies and quicker market access for participating exchanges, and help ESG-compliant companies enhance their business value through improved disclosures.

This initiative will develop infrastructure solutions to facilitate cross-border trade flows, link corporate supply chains with ESG-focused investment capital, and provide competitive financing rates for suppliers with strong ESG practices.

The participating exchanges have committed to adopting the “ASEAN Exchanges Common ESG Metrics” in their ESG reporting platforms and will finalise the implementation details at the 37th ASEAN Exchanges CEOs Meeting scheduled for July 2024 in Malaysia.

This initiative is open to other exchanges interested in advancing sustainable development and responsible business practices within the ASEAN region here.

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