World Federation of Exchanges publishes draft transition equity principles to guide exchange designations for listed companies on decarbonisation pathways

The World Federation of Exchanges has published draft Transition Equity Principles, an industry-backed framework for exchanges to establish Transition Equity Designations for listed companies on credible decarbonisation pathways. The framework is intended to improve access to capital for issuers pursuing decarbonisation objectives and to give investors decision-useful information on companies’ transition pathways. Supported by WFE members across jurisdictions and continents, the principles build on the WFE Green Equity Principles published in 2023 and the WFE’s Practical Guide for Issuers on Accessing Transition Finance published earlier this year. The release says the framework is designed to bring clarity, consistency and rigour to the concept of transition equities, support international recognition of exchange offerings, and facilitate cross-border investment activity. The draft was developed with input from the WFE’s Transition Equity Principles Consultative Committee and led by its Sustainability Working Group. The principles will be presented at the WFE Annual Sustainability Conference in Luxembourg on 3-4 June 2026. WFE intends to formally consult on the draft in due course and plans to publish supporting guidance once the principles are finalised.