Conference Programme
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08:00 - 08:40
Arrival & Registration
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08:40 - 09:15
Market Opening Ring the Bell Ceremony
Speaker
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09:15 - 09:20
Opening Remarks
Speaker
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09:20 - 09:30
Keynote Speech
Speaker
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09:30 - 09:55
Session 1: Turning Insights into Impact: An Exchange’s Transition Plan Case Study
This session will offer a roadmap to exchanges on developing a transition plan for their business that focuses on the markets they operate in and products they offer. SGX will walk us through their journey to creating their first transition plan, and the key lessons they learned from the process. SGX will outline: the importance of transition planning for exchanges; the key processes, structures and stakeholders needed to ensure success; why transition plans for exchanges differ from those of corporates and banks, where guidance and best practice already exists; and how to manage the risks associated with publishing a transition plan.
During the session, SGX will answer the following: Why and how was SGX’s transition plan developed? What lessons were learnt on the journey? How does an exchange’s transition plan differ from that of an issuer or bank? How did climate scenario analysis impact SGX’s transition plan and the sustainability products they offer? What was the involvement of departments across SGX? How does SGX manage the risks associated with its transition plan?
Speaker
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09:55 - 10:40
Panel 1: Turning Insights into Impact: The Future of Transition Planning
Transition planning is critical to fostering resilient businesses and long-term profitability for investors. This panel discussion will respond to the SGX case study and explore how exchanges can support issuers in developing effective transition plans.
The panel will discuss the importance of transition plans in translating data into practical actions and informing a strategic approach to sustainability risks and opportunities. Unlike traditional disclosures, transition plans are dynamic and so the session will also address common concerns around how to communicate shifting priorities over time, and how new data may prompt a re-evaluation of earlier assumptions. In particular, the session will look at how to manage the evolution of transition plans as best practice and science develop and how to facilitate an ongoing dialogue both within a company and with its external stakeholders to inform that evolution. The journey of developing a transition plan is as important as the destination.
Separately, the panel will discuss the important link between national transition plans and issuers’ transition plans, and the challenges that arise when national transition plans have not yet been developed.
The session will answer the following: What can exchanges do to support the development of transition plans by issuers? What makes a good transition plan? What does having a transition plan change and what advantages does having a robust transition plan offer? What practical advice can panellists share in beginning the process and in managing updates? What areas are challenging for issuers looking to develop a robust transition plan? How is assessment of transition plans by third party reviewers evolving globally? How can assessments be scaled to address the cost for SME issuers and markets?
Moderator
Speakers
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10:40 - 11:00
Coffee break
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11:00 - 12:00
Panel 2: Drivers and Processes in Establishing Sustainability Product Designations
Stock exchanges play a key role in supporting sustainability by offering a growing range of products that align capital flows with environmental and social goals. This panel discussion will explore the conceptual processes and considerations that play a role in developing an exchange’s range of product offerings and how demand is evolving globally.
The session will explore the sustainability themes that exchanges should be considering in developing and evolving their product range, from nature and biodiversity to education and gender equality. It will also highlight what emerging standards are available to assist exchanges in this process, such as the WFE’s Green Equity Designation, and where there is a need for further standards to ensure that products are credible and meet investors’ evolving needs and preferences. Panellists will additionally discuss the key considerations in selecting the right instruments and themes for products, and emerging trends that exchanges should be aware of, including an increasing demand for transition products.
The panel will answer the following: To what extent have carbon markets shaped sustainability offerings and could they provide a model for future sustainability products? How have exchanges established their product ranges and, if they evolved, what challenges arose as a result? What drives exchanges’ choice of offering and what indicators do they look at to establish when market demand for a product is sufficiently matured to launch? How do exchanges see products evolving and is this particular to their region? What role do taxonomies play in supporting the development of sustainable products? What new areas do exchanges see emerging – for example, do they expect rapid growth in relation to nature (or other areas) and, if so, what form of product/s would be most appropriate?
Moderator
Speakers
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12:00 - 12:35
Academic Paper Presentation
Supply Chain Disruptions: The Propagation and Economic Costs of ESG Shocks
This paper, selected by the WFE's ESG Academic Advisory Group, investigates how negative ESG-related news about suppliers impacts firms’ supply chains and performance. It finds that customer firms are more likely to terminate supplier relationships following negative ESG-related news, particularly when input specificity is low and suppliers can be easily replaced. While these terminations are costly for customer firms in general, the lower terminating costs associated with non-specialised inputs help to explain their higher likelihood in this context.
Presenters
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12:35 - 13:45
Lunch
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13:45 - 14:20
Academic Paper Presentation
Pricing the Priceless: The Financing Cost of Biodiversity Conservation
This paper, selected by the WFE's ESG Academic Advisory Group, explores the economic costs of biodiversity conservation and how financial markets price the risks those costs induce. As an example, the paper examines the “Green Shield Action,” a major regulatory initiative launched in China in 2017 to enforce biodiversity preservation rules in national nature reserves. While improving biodiversity, the initiative led to significant increases in bond yields for municipalities with these reserves, effectively increasing the cost of public capital.
Presenters
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14:20 - 15:20
Panel 3: Building Tomorrow: The Role of Exchanges in Empowering Sustainable Supply Chains
As global sustainability regulations continue to evolve, companies are facing increased expectations to not only manage their own operations but also take greater responsibility for their supply chains. EU regulations, particularly the Corporate Sustainability Due Diligence Directive (CSDDD), require companies to identify and mitigate environmental and human rights risks across their value chains, with implications for suppliers both within and outside the EU.
While the recent proposal for an Omnibus Regulation has introduced some uncertainty around implementation timelines in the EU, the direction of travel is clear. Companies that prepare early and begin integrating supply chain due diligence into their strategies are likely to benefit from increased resilience, investor confidence and long-term competitiveness.
This session will examine the key challenges and opportunities facing companies that are looking to manage and report on their supply chains. It will also explore how exchanges can play a key role in supporting issuers – especially in emerging markets – to navigate the evolving landscape, manage risks, and seize the opportunities that come with building more sustainable supply chains.
The discussion will explore the following: What are the main implications of regulation and increased scrutiny on this topic for issuers and exchanges? Will the Commission’s announcement for an Omnibus Regulation simplifying EU regulations impact timelines and the need for preparedness? What are issuers’ priorities when it comes to sustainability in supply chains? What could exchanges do to support issuers’ efforts, particularly in jurisdictions outside Europe? How are issuers managing supply chain risks and opportunities, including evolving regulation and stakeholder expectations? What are the benefits and opportunities for businesses that take the initiative on supply chain management and reporting? What impacts, if any, are being seen from early movers (i.e. is it impacting procurement significantly and, if so, how)?
Moderator
Speakers
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15:20 - 15:30
Closing Remarks
Speaker
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