Stock Exchange

Stock Exchanges can encourage action of listed companies

Department/ policymaker


101 ideas for a sustainable finance policy package


Provide clarity on green 

Tilt investment to green opportunities

Build green investment pipelines

private finance

public finance

blended finance

Stock Exchange


55. Listing requirements

56. Green bond segment 

57. Fast track green bonds



Stock exchanges can complement regulatory efforts to increase transparency. Stock exchange listing requirements are used to establish the quality of the listing and ensure investors are adequately informed before making an investment. Including ESG reporting in listing requirements is increasingly common, reflecting investor demand and understanding of materiality of these factors to financial viability. Companies listed on the London Stock Exchange have been required to report carbon emissions in their annual strategic report since 2013.[i] Singapore Stock Exchange is introducing mandatory TCFD-based climate reporting, phasing in requirements, beginning with ‘comply or explain’ reporting for the financial year commencing 1 January 2022.[ii]

Green bond/equity segments can also increase visibility of sustainable finance instruments. The segments’ listing requirements also provide investors with certainty about the issuance, reducing due diligence requirements. 38% of exchanges have ESG bond segments according to Sustainable Stock Exchange Initiative which provides guidance to stock exchanges on growing green finance.[iii]Luxembourg Green Exchange (LGX) was the first such segment, established in 2016. It lists labelled and unlabelled bonds and funds with green, social and sustainable characteristics. All instruments and/or issuers must comply with a recognised standard and comply with LGX’s criteria.[iv] LGX also provides technical assistance throughout the issuance process. Borsa Italiana provides a search tool for the identification of unlabelled climate-aligned bonds to further increase low-carbon investment.[v]

Stock exchanges can also further incentivise GSS issuance, by providing fast tracking. For example, Shanghai Stock Exchange and Shenzhen Stock Exchange offer fast tracks for green corporate bonds.[vi]