The Exchange Group within the Net Zero Financial Service Providers Alliance (NZFSPA), is proud to announce that its net zero target-setting framework (the Framework) has been officially approved by the UN High-level Climate Change Champions overseeing the Race to Zero campaign.
This endorsement marks a milestone in the Group’s commitment to combating climate change and contributing to the global transition to a sustainable, net-zero economy.
The Framework provides a comprehensive roadmap for capital market infrastructure operators to align their own operations with the goals of the Paris Agreement, and assist their markets to address the climate crisis. Developed in collaboration with over 56 industry experts from 28 different organisations, the Framework guides exchanges to set ambitious and credible net zero targets, enabling them to contribute meaningfully to a sustainable future. The approved framework can be found here.
The NZFSPA Exchange Group’s eight committed members are now looking forward to translating the targets into action in their markets. Each exchange will be using the Framework to develop its own individual targets tailored to its market context and will be reporting on its progress against these targets.
The Framework emphasises the important role exchanges can play in leading by example, providing climate-related market education and promoting a just transition. It also captures the need for continuous reporting on progress.
Dr Mahmoud Mohieldin and Her Excellency Ms Razan Al Mubarak, UN Climate Change High-Level Champions, commended the Exchange Group’s commitment to a greener future and expressed their desire for continued collaboration:
“We warmly welcome the Net Zero Financial Service Providers Exchange Group as an official partner of the Race to Zero, highlighting the pivotal role of stock exchanges in catalysing the transition to a sustainable future. This partnership harnesses the collective power of financial service providers committed to achieving net zero emissions, exemplifying the collaborative spirit essential to tackling the climate crisis and inspiring others to join the global movement towards a just transition to a net-zero resilient world.”
“For Grupo Bolsa Mexicana de Valores embracing net zero is not just an environmental imperative, but a strategic business decision for a sustainable future. Releasing the Net Zero Target Framework for Stock Exchanges with SSE will help us, and our peers set a clear path towards reducing climate risk, foster innovation and create a resilient economy.”
José-Oriol Bosch Par, CEO, Bolsa Mexicana de Valores
“As a member of the Net Zero Financial Service Providers Alliance, Cboe is proud to join our fellow exchanges in tackling urgent challenges and championing sustainability across the industry. The launch of the target-setting framework for exchanges exemplifies our unwavering commitment to a healthy and resilient marketplace that fosters inclusive and sustainable growth while actively contributing to the UN Sustainable Development Goals. Cboe is dedicated to achieving our Net Zero goals and pursuing sustainable outcomes for the industry and our communities.”
Edward T. Tilly, Chairman and CEO, Cboe Global Markets
“Tackling climate change is our collective responsibility and it requires unparalleled levels of regional and global cooperation, across every industry. HKEX is delighted to be part of the Net Zero Financial Service Providers Alliance, launching a new framework for global stock exchanges to set their net-zero targets. In contributing to meet the goals of the Paris Agreement, we are committed to facilitating the transition to a low-carbon and climate-resilient economy across our markets, business and operations. We look forward to more exchanges joining the global drive to build a green and sustainable finance ecosystem.”
Laura M Cha, HKEX Chairman
“The JSE welcomes the launch of the NZFSPA Exchange Group’s target-setting framework. The framework represents an important step towards achieving a globally coordinated approach to ESG for business. As a member of the Race to Zero Partner Initiative, the JSE supports an integrated approach that incorporates the views of local policy makers, regulators and the organisations who are transforming the way they operate, invest and grow.”
Leila Fourie, CEO, JSE
“In close collaboration with the other members, we have established a solid target setting guidance for exchanges, which will serve to guide our joint efforts towards net zero. Exchanges play an essential role in the decarbonisation of the global economy and through industry-wide objectives and actions, we can drive meaningful change both within our own organisations and in our markets. This guidance will allow stock exchanges to report in a harmonised manner on the aspects that have been identified as material by the group, and ensure transparency around their progress. Cooperation between exchanges is crucial to transform finance and address our global challenges.
Julie Becker, CEO, LuXSE
“The publication of the target-setting framework today is an important initial milestone and I’d like to thank the United Nations Sustainable Stock Exchanges initiative for their support in facilitating this. This work is an example of what can be achieved through collaboration amongst global exchanges. Our focus now must be on driving action and implementing the framework globally in support of achieving net zero.”
Julia Hogget, CEO, LSE
“As an exchange, we recognise the importance of the role we play in taking the lead to mobilise financial markets in Asia and globally towards a sustainable net zero economy. We are committed to support our stakeholders in their transition objectives.”
Loh Boon Chye, CEO, SGX
About the Exchange Group, NZFSPA
The Net Zero Financial Service Providers Alliance (NZFSPA) is a global group of Service Providers committed to supporting the goal of global net zero greenhouse gas emissions by 2050 or sooner, in line with the ambition to limit the global temperature increase to 1.5°C above pre-industrial levels.
The Exchange Group is part of the NZFSPA, dedicated to driving sustainable finance and accelerating the transition to a net zero economy. With a strong commitment to combating climate change, the Exchange Group provides market infrastructure operators with frameworks, and tools to align their operations with global climate goals.
About Race to Zero
Race To Zero is a global campaign to rally leadership and support from businesses, cities, regions, and investors for a healthy, resilient, zero-carbon recovery that prevents future threats, creates decent jobs, and unlocks inclusive, sustainable growth. Led by High-Level Champions, Race to Zero mobilizes actors outside of national governments to join the Climate Ambition Alliance, which was launched at the UNSG’s Climate Action Summit 2019 by the President of Chile, Sebastián Piñera.