Four Leading Asian Stock Exchanges To Build an ESG Ecosystem Together

Bursa Malaysia, the Stock Exchange of Thailand (SET), the Indonesia Stock Exchange (IDX), and the Singapore Exchange (SGX Group) have joined hands to set up the ASEAN Interconnected Sustainability Ecosystem (ASEAN-ISE).

The exchanges recently approved a structure for the governance and plan of operation to oversee the implementation of the ASEAN-ISE initiative, with Bursa Malaysia taking over the ASEAN-ISE Secretariat role.

By creating an integrated ESG ecosystem, the ASEAN-ISE hopes to encourage sustainable development, improve the efficiency of participating exchanges, and enhance the value of ESG-compliant businesses.

A major objective of this initiative is to develop infrastructure solutions that facilitate cross-border trade, offer competitive rates for suppliers that have strong ESG practices, and link corporate supply chains with ESG-focused investment capital.

As part of the 37th ASEAN Exchanges CEOs Meeting scheduled for July 2024 in Malaysia, participating exchanges have committed to adopting the “ASEAN Exchanges Common ESG Metrics” in their ESG reporting platforms.

Other exchanges within ASEAN may participate in this initiative, which promotes sustainable development.