UN SSE, IFC support Amman Stock Exchange’s leadership on climate-related disclosures

UN SSE, IFC support Amman Stock Exchange’s leadership on climate-related disclosures

13 September 2022

(13-14 September 2022) The UN Sustainable Stock Exchanges initiative together with the International Finance Corporation (IFC) held a joint event with the Amman Stock Exchange (ASE) to initiate the development of local guidance on climate-related disclosures. The ASE will be the first exchange in the region and the 5th globally to develop climate-specific reporting guidance that builds on global standards and best practices. The two-day hybrid event titled “Shaping the frontier of sustainability, climate reporting and finance” was opened by the CEO of the Amman Stock Exchange, Mr. Mazen Wathaifi, who said to the in-person and online participants, “profit is no longer making money at any cost [...] your attendance today as business leaders will send a strong signal [to the market].”  This was echoed by Ms. Mary Porter Peschka, IFC Director of Environment, Social and Governance, who also highlighted the important role of the stock exchange: “Your leadership is going to be crucial. Swift action is needed [...] we all need to collectively rise to the challenge.”  The event signals the start of the development of climate-related disclosure guidance for the Jordanian market, which the ASE will produce with the support of the IFC, based on the SSE’s Model Guidance on Climate Disclosure. The ASE is also releasing its updated sustainability guidance this year and has required its top 20 listed companies to report on sustainability in accordance with the GRI.  “Helping address climate-related financial risk is a priority for the International Finance Corporation. As such, I am delighted to lead Jordan’s Amman Stock Exchange in launching the region’s first climate guidance reporting initiative. In addition to strengthening companies' climate disclosure practices, the initiative will support ASE in meeting the growing investor demand for companies engaged in sustainable business activities,” Dr. Amira El Saeed Agag, IFC ESG Officer & Projects Manager said, as she launched the training program that she was instrumental in organizing for the exchange.

Tiffany Grabski, Head of SSE Academy, addressing the Amman Stock Exchange event “Shaping the frontier of sustainability, climate reporting and finance” Sept 2022

The event started with a panel discussion to provide both global and local perspectives on the topic from standard setters, stock exchanges, investors and listed companies. SSE Academy Head, Ms. Tiffany Grabski, participated in the panel, congratulating the Amman Stock Exchange for its leadership in the region. Ms. Grabski also highlighted the important role that disclosure guidance plays for markets by illustrating the impact that the launch of the recommended disclosures and guidance from the Financial Stability Board’s task force on climate-related financial disclosures (TCFD) had on global disclosure regulation. “Market participants look to exchanges for guidance and training on the adoption and implementation of global standards. Listed companies around the world are increasingly asked by investors, policy makers and other stakeholders to deliver high-quality climate data and exchanges have an important role in guiding and educating their markets in this area,” said Ms. Grabski.  Following the panel discussion, the Amman Stock Exchange and the IFC signed a collaboration agreement to develop climate-related disclosure guidance for the Jordanean market, based on the SSE’s Model Guidance on Climate Disclosure. To start this process, the SSE, IFC and CDP (formerly Climate Disclosure Project) provided the stock exchange’s employees with a full day training workshop on climate-related disclosures and guided them on developing local guidance on this topic.  The UN SSE tracks stock exchange’s sustainability efforts, including those pertaining to climate-change. More than 80 stock exchanges globally are actively promoting or engaging on climate change through work pertaining to the Financial Stability Board’s (FSB) task force on climate-related financial disclosures (TCFD). The top activities that stock exchanges use to support a transition to low-carbon markets are training and education. For example, 50 stock exchanges have provided, or are in the process of providing training for companies on the TCFD and 41 stock exchanges include reference to TCFD in their sustainability disclosure guidance. For the full list of activities visit the SSE’s TCFD database.

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About the SSE

​The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.