Corporate Knight’s have released their report ranking the world’s stock exchanges based on sustainability disclosure from the large companies on each stock exchange. The research ranks 45 exchanges, recognizing those who performed well or improved past performance, and calling for further action from others that performed poorly. The rankings are based on the disclosure of seven sustainability indicators by issuers listed on the exchange. These metrics are meant to serve as a proxy for disclosure do not cover all material sustainability metrics; therefore, there is still a role for even the top performing exchanges to play in further improving sustainability disclosure in their markets.
The report also shows that while disclosure rates have improved over the past five years, in part due to positive actions by exchanges, the overall global level of ESG disclosure is still far too low. For instance, when looking at the largest listed companies across the 45 exchanges included in the research, GHG emissions were disclosed by only 47% of issuers. Key findings from the 2016 Corporate Knight’s report include:
- Mandatory disclosure is successful in improving corporate sustainability disclosure;
- Overall, improvement in disclosure is slow, with the number of large companies that disclose water increasing only 26% between 2010 and 2014;
- Disclosure on social metrics is weak.
To view the full 2016 Corporate Knight’s report click here