The Philippine Stock Exchange (PSE) joined the ASEAN-Interconnected Sustainability Ecosystem (ASEAN-ISE), underscoring the commitment of bourses in the region to unify sustainability and good governance metrics.
The initiative began with a Memorandum of Understanding between Bursa Malaysia, the Indonesia Stock Exchange (IDX), and the Stock Exchange of Thailand (SET). It expanded to include Singapore’s SGX Group in February 2024 and the PSE in July.
What was the event?
This happened during the 37th ASEAN Exchanges CEOs meeting, hosted by Bursa Malaysia, last July 12.
“Sustainability is a collective endeavour and we believe ASEAN-ISE provides us an opportunity to contribute to the development and implementation of ESG initiatives in the region,” PSE president Ramon Monzon, in reference to their environmental, social and governance (ESG) programs, said after their meeting.
“We are excited to collaborate with our peer exchanges in creating programmes that will elevate the level of sustainability in ASEAN markets,” he added.
In the past year, ASEAN exchanges have increased information sharing and adopted common ESG metrics. Peer exchanges contributed to an ESG survey to prioritize future initiatives.
“The inclusion of PSE in ASEAN-ISE signifies ASEAN Exchange members’ steadfast commitment to sustainable development as a unified market,” said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia.
“The agreed-upon proof of concepts focuses our collective energy and resources on exploring and deploying workable models in targeted strategic areas,” he added.
Priority areas
In the same meeting, the ASEAN CEOs have agreed to pursue pilot projects focusing on four areas.
These include creating a standard ESG curriculum for companies, encouraging quality reporting with better financing options, and introducing ASEAN ESG Awards to recognize outstanding performance.
Cross border investing
The ASEAN Exchanges agreed to work together to offer Depository Receipts (DRs) on their exchanges.
DRs allow local investors more opportunities to invest in neighboring countries. This follows the successful DR linkage between SGX Group and SET last year, paving the way for a broader ASEAN initiative.
