The World Federation 
of Exchanges (WFE), the global industry group for exchanges and CCPs, has published a briefing paper setting out human-rights related disclosure practices within stock exchanges.
The briefin notes that while companies have made real progress in achieving a better understanding of their environmental impact and governance standards, social issues have not necessarily been given the same level of attention.
However, it said that the unequal impact of the pandemic has helped to create awareness of and drive momentum behind the need for social change.
The paper has highlighted issues such as human rights abuses within company supply chains; the need for gender and ethnic diversity within company boardrooms; and poor human capital management.
Of the social issues that exist, human rights violations are perhaps seen as the most pervasive which is why it is the main the focus of this briefing.
In particular, the paper defines and assesses existing human-rights related initiatives including the International Labour Organisation (ILO), Declaration on Fundamental Principles and Rights at Work, and the Sustainable Development Goals (SDGs).
It also examines the shift in the ‘purpose of a corporation’ from looking at value creation for investors to considering the views of wider stakeholders.
In addition, WFE is making a case for responsible business including a consideration of the UN Guiding Principles on Business and Human Rights as well as implementing actions to give effect to the UN Guiding Principles. This will include case studies from member exchanges.
The briefing paper is also considering forthcoming legislation such as supply chain due diligence and highlighting the steps that the WFE can take to help its members with disclosure on human-rights related issues.
“The pandemic has helped to shine a light on social inequality,” said Nandini Sukumar, chief executive officer at WFE.
She added, “ Our members recognise this and see a role for exchanges to play in guiding both issuers and exchanges towards more meaningful disclosure on persistent issues such as human rights abuses. This briefing paper is a welcome first step, and we look forward to working with our members to further develop their understanding and awareness”.
©Markets Media Europe 2022
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