Climate agenda
The role of corporate governance
Moscow Exchange strives to mitigate climate change in three ways:
- through compliance with best global practices in accounting for and reducing greenhouse gas emissions;
- by developing carbon units trading;
- by encouraging the issuers and financial market participants to invest in the implementation of climate action initiatives through responsible investing mechanisms of the Sustainability Sector.
The Group’s general ESG strategy covers the management of climate risks and opportunities. Identifying and assessing climate risks and opportunities and integrating such processes into the activities of the Group companies are part of Moscow Exchange’s Sustainability Roadmap. In implementing the roadmap, the Group companies’ management bodies get a better understanding of the climate agenda and the tasks faced by the Group.
Moscow Exchange Group works to improve its business processes with due regard for climate risks and introduce new operating models. This approach facilitates the taking of more weighted strategic decisions in planning out the Group’s activities.
Climate risks and opportunities management goals:
- build resilience to climate risks;
- take full advantage of climate change;
- contribute to achieving the Paris Agreement objectives.
The Supervisory Board and the Risk Management Committee consider climate risks and opportunities, analysing the quality of their management and the effectiveness of the Group companies’ activities. Members of the Supervisory Board participate in climate risk management by preparing climate-related instructions for the Group companies and ensuring that the climate agenda is included in the Group’s medium-term and long-term strategy. Members of the Executive Board oversee the Group’s climate risk management plans and actions.
Moscow Exchange is guided by the following key international documents:
- UN Framework Convention on Climate Change, and the Paris Agreement dated 12 December 2015;
- Recommendations of the TCFD.