Sri Lanka’s stock exchange launches guide for listed local companies to ensure prominence given to ESG factors
Sri Lanka’s Colombo Stock Exchange (CSE) has reportedly launched a guide for listed Sri Lankan companies in a bid to help them address environmental, social and governance (ESG) factors in their capital market communications to further strengthen sustainable investments.
“As sustainable investing continues to gain momentum among financial market participants, ESG factors are increasingly outlined by leading institutional and retail investors from around the world as vital determinants of investment decisions,” the statement has been quoted as saying.
“Regulatory bodies too, are responding to this momentum, and are uplifting the importance of ESG disclosures to the corporation to strengthen market procedures.”
According to the CSE, the growing political and economic prominence of climate change, market based incentives for the transition to lower-carbon products, labour standards, human rights and safety standards are the key drivers behind this emerging trend.
Head of Research and New Products at CSE Nishantha Hewavithana has been quoted as saying that the publication is a part of the CSE’s bid to encourage listed companies to measure and publicly report their ESG performance, with a focus particularly on the impact to the environment.
He has further noted that the CSE encourages all listed companies to consider sustainability reporting with a special emphasis on the recommendations made through the publication.
OSL take:
The latest move by the CSE to further strengthen sustainable investments would in turn promote environmentally responsible development programmes in the country. Many stock exchanges in other countries also practice the inclusion of ESG in capital market communications of companies. The CSE’s guide will also promote Sri Lankan listed companies to be on par with international companies.
| Article Code : | VBS/AT/20180320/Z_1 |