The World Federation of Exchanges has published research analysing what drives Environmental, Social, and Governance progress at exchanges, using a decade of results from its annual Sustainability Surveys. The paper, Drivers of Exchange Sustainability Development, provides a multi-year view of how ESG strategies vary across 66 exchanges in 54 jurisdictions, linking differences to governance quality, education levels, climate exposure, and cultural attitudes. The research finds exchanges allocate the largest share of ESG effort to governance, averaging 39%, with the strongest emphasis in jurisdictions with high literacy and low corruption. It identifies sustainability concerns and reputational motivations as the most consistent drivers of ESG action over the period, while regulatory pressure has increased in influence since 2017. It also reports rapid growth in sustainability-linked products, with the share of exchanges offering such products rising from 28% in 2014 to 86% in 2023, alongside evidence that future-oriented cultural preferences and domestic environmental conditions such as forest cover and climate variability are associated with greater ESG innovation, including ESG ETFs and indices.
World Federation of Exchanges 2025-07-21
World Federation of Exchanges research maps governance and local conditions shaping ESG progress across 66 exchanges
The World Federation of Exchanges published research on ESG progress at exchanges, highlighting governance as the primary focus, with 39% of ESG efforts, especially in jurisdictions with high literacy and low corruption. The study notes increased regulatory pressure since 2017 and a rise in sustainability-linked products, with 86% of exchanges offering them in 2023, driven by sustainability concerns, reputational motivations, and cultural and environmental factors.