SSE Regional dialogue: Nordic Countries [Opening remarks]
04 November 2015
Excellencies,
Ladies and Gentlemen,
Good morning. It is my great pleasure to be with you today.
It is already more than a month since the Sustainable Development Goals, or SDGs, were adopted by the global community.
These 17 goals, and 169 targets, encompass the long-term aspirations of humanity.
They are about a world without poverty, and the indignity it implies.
They are about a world where the benefits of growth reach the many and not only the few.
They are about a world where our children, and the children of our children, do not have to pay the price of the way we live today.
In a nutshell, the SDGs are about a world of prosperity, dignity and a better planet, for ALL.
As you can see, the SDGs imply a drastic transformation, from the world we live in to the word we want. And the transformation has to be fast; the deadline is the year 2030.
For some people, the issues I just mentioned may seem far away from the issues stock exchanges deal with. For some, stock exchanges have no role in the transformation needed to build the world we want.
But this is incorrect.
Private sector must do its part. We need to unleash the power of private enterprise, its innovative capacity and its capital mobilization capabilities. Because of this, stock exchanges have a role to play, and a critically important one.
So, let me get concrete and focus the rest of my intervention on my two main messages: 1) The contribution stock exchanges can make to meet the SDGs and 2) the specific contribution Nordic exchanges can make.
Let me start with my first point.
The first way is by promoting investment in sustainable development.
Stock exchanges have a strong record of providing capital to risk takers with innovative ideas. Businesses that start in a garage can end up among the largest companies in the world, thanks in large part to the financing mechanism of stock exchanges.
Now we need to harness that market dynamism to drive investment towards sustainable development solutions. And believe me, the task is not minor.
Meeting the SDGs requires massive investment, in the order of 5 to 7 trillion dollars a year - of which about 3.3 to 4.5 trillion per year is needed in developing countries alone. Much of this is for basic infrastructure, food security, health, education and climate change mitigation and adaptation.
Thus, stock exchanges have an important role to play in encouraging new innovations, technologies and products for sustainability and to channel investment into those areas.
The second way private sector can help achieving the SDGs is by promoting good governance in business practices.
Good governance in business means environmental and social corporate governance practices -- what many investors refer to as "ESG" performance practices. Any company that plans to be successful for the long term must have strong ESG practices. This is not an issue of morality - it is about bottom line issues. Consumers demand it. Policy makers demand it. And investors demand it. Companies understand this and are adjusting.
Stock exchanges and capital market regulators have a strong role to play in this area. They have traditionally been responsible for creating formalized, well regulated markets with transparent, well-governed companies. This historic mission extends now into the future: a future of creating sustainable companies that report on their ESG performance.
Now I come to my last point: the specific contribution Nordic exchanges can make.
SDG 17 calls for stronger multi-stakeholder global partnerships for sustainable development to mobilize and share knowledge, expertise, technologies and financial resources to support SDGs.
You, Nordic country exchanges, have a good record on promoting responsible business. And thus, you can help promote change at a global level by working with the UN. Trough initiatives like the Sustainable Stock Exchange you can share your expertise with countries around the world, particularly developing countries.
You can also assist each other, with larger more advanced exchanges helping smaller exchanges in developing countries. Sustainability is not an area of competition; it is an area for collaboration.
In this context, I am proud to welcome today all the stock exchanges in the Nordic Region as new members of the Sustainable Stock Exchange initiative. This is the start of a partnership, where the Nordic leadership and support is critically important.
Ladies and Gentlemen,
Together we can promote alignment between market signals and much needed public policy goals.
Together we can help create a world of prosperity, dignity and a better planet for all. And, today, we can begin to work on the new ideas and the practical steps that will take us there.
Thank you very much.
