Stock exchanges unite to launch the ASEAN-Interconnected Sustainability Ecosystem

The collaboration aims to advance sustainable development through common ESG metrics

Stock exchanges unite to launch the ASEAN-Interconnected Sustainability Ecosystem

Four major stock exchanges from Malaysia, Indonesia, Thailand, and Singapore have come together to form the ASEAN-Interconnected Sustainability Ecosystem (ASEAN-ISE).

This initiative aims to enhance the region’s sustainable development by implementing common Environmental, Social, and Governance (ESG) metrics across their data infrastructures. The collaboration between Bursa Malaysia Berhad, the Indonesia Stock Exchange (IDX), The Stock Exchange of Thailand (SET), and the Singapore Exchange (SGX Group) was officially announced following a meeting where the foundational governance structure and operational blueprint of the ASEAN-ISE were agreed upon.

Bursa Malaysia will act as the ASEAN-ISE Secretariat, overseeing the initiative's objectives to create an integrated ESG ecosystem that fosters sustainable development throughout ASEAN.

One of the key goals of the ASEAN-ISE initiative is to enable participating exchanges to achieve economies of scale through cost efficiency and a faster time-to-market for fit-for-purpose solutions. It also aims to empower exchanges to assist ESG-compliant corporates in maximizing business value through quality disclosures. This involves developing infrastructure solutions to facilitate cross-border trade flows and connecting corporates’ supply chains to ESG-oriented investment capital.

“The addition of Singapore Exchange to the Interconnected Sustainability Ecosystem initiative reflects strong collaboration of stock exchanges in ASEAN to bolster the sustainable finance ecosystem in the ASEAN capital markets,” said Iman Rachman, president director of Indonesia Stock Exchange. “This is a step forward in promoting the implementation of the recently announced ASEAN Common ESG Core Metrics and encouraging responsible business practices among listed companies in ASEAN stock exchanges.”

SGX Group’s CEO, Loh Boon Chye, highlighted the importance of collaboration among ASEAN Exchanges to drive capital towards sustainability efforts and address climate change in the region. “By sharing our expertise and coordinating efforts, we can mobilize capital for sustainable financing, contributing to a more economically and climate resilient ASEAN community,” Loh Boon Chye said.

Pakorn Peetathawatchai, president of SET, stated, “The inclusion of SGX Group strengthens our alliance, uniting key regional players. Together, we set new standards for responsible business practices, encouraging corporates to integrate the ASEAN Exchanges Common ESG metrics.”

The participating exchanges have committed to adopting and implementing the “ASEAN Exchanges Common ESG Metrics” in their ESG reporting platforms and will reconvene to finalize implementation details. The formalization of the ISE governance framework and operating structure is scheduled for the 37th ASEAN Exchanges CEOs meeting in July in Malaysia.

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