Dar es Salaam Stock Exchange (DSE) has joined United Nation’s Sustainable Stock Exchange initiative that promote sustainability among investors and companies.
By joining SSE, the Dar bourse followed its peers in Africa such as Johannesburg Stock Exchange, The Egyptian Exchange, Nigeria Stock Exchange, Nairobi Securities Exchange and Rwanda Stock Exchange.
DSE Chief Executive Officer Moremi Marwa said under SSE the exchange would work closely with listed companies and investors — especially institution investors — on sustainability development.
“The way forward is for the companies when disclosing their financials to incorporate corporate sustainability — such as social and good governance and environmental protection,” Mr Marwa said during DSE seminar to journalists.
He said the disclosures are expected to be implemented “as soon as possible” after meeting with the listed companies and other stakeholders to discuss the new SSE initiative. The new initiative is geared to increasing quality of disclosures and encouraging the adoption of world class corporate governance norms.
DSE, according to the CEO, joined the initiative a month ago and was in the preparation to start implementation of the SSE goals on environmental, social and governance (ESG) issues.
DSE Manager for Market Research and Development Ibrahim Mshindo said the bourse was also in the process of establishing some prizes for listed companies which excelled in various fields in days to come.
“We are in a process of offering DSE Annual Award. The idea is to recognise achievements of some of the listed companies,” Mr Mshindo said. The SSE is a peer-to-peer learning platform for exploring how exchanges — in collaboration with investors, regulators, and companies —can encourage sustainable investment and enhance corporate transparency, and ultimately performance, on ESG issues.
The initiative was launched by UN Secretary-General Ban Ki-moon in 2009. The SSE is convened by the United Nations Conference on Trade and Development (UNCTAD), the UN Global Compact, the UN Environment Programme’s Finance Initiative (UNEP FI), and the Principles for Responsible Investment (PRI).
This new engagement tool kicks off with a dozen leading exchanges from around the world including the London Stock Exchange and Nasdaq as well as exchanges from Africa, Asia, Eastern Europe and South America.
The ESG communication is set to explain each exchange’s approach to promoting sustainability among investors and companies. The communication guides exchanges on the types of information sought by investors, companies, employees, peer exchanges, civil society, and others.
