The International Stock Exchange has launched a new transition offering within its sustainable finance segment, TISE Sustainable.
The addition of the transition offering to The International Stock Exchange (TISE) Sustainable means that it now caters for transition bonds and transition issuers, supporting initiatives which lead to a lower carbon economy and society.
A report published earlier this year by McKinsey estimated that annual average spending on physical assets will need to increase by $3.5 trillion to a total of $9.2 trillion to complete the transformation of the global economy to net zero emissions by 2050.
Cees Vermaas, CEO of TISE, said: “Climate risk means it is vitally important that globally we transition to a lower carbon and more sustainable way of life. A significant amount of investment is required to ensure that this happens – and that this happens in a fair and equitable manner – and so we are pleased that through the launch of this transition offering at TISE we will continue to play our part in the just transition to net zero.”
TISE is a Partner Exchange of the United Nations’ Sustainable Stock Exchanges Initiative (UN SSE) and in July 2021 launched TISE Sustainable as a reputable sustainable finance segment. Today, more than £13 billion worth of listings on TISE support environmental, social and sustainable initiatives.
Brands associated with TISE Sustainable include the world’s largest recycler of aluminium, Novelis; telecommunications companies VodafoneZiggo and Virgin Media O2; the largest sustainable property developer in the UK, Canary Wharf Group; and sovereign sustainable bond issuer, The Isle of Man Treasury.
With a straightforward application process and no additional fee, the segment is available to all TISE-listed issuers and securities which demonstrate their qualifying credentials, including those with credible transition plans.
Either the issuer’s business (or that of its wider group), or the use of proceeds raised by the issuance of a security, must have been verified by an independent party against a recognised transition framework. These include the transition frameworks provided by the Climate Bonds Initiative (CBI), the International Capital Markets Association (ICMA) and the Transition Pathway Initiative (TPI).
TISE Sustainable caters for a wide range of products including green bonds, social bonds, sustainable bonds, sustainability-linked bonds and transition bonds, as well as green funds, ESG-rated companies and transition issuers.
The CBI has reported that the new and developing transition bond market grew by 33% year on year in 2021, with total issuance reaching a cumulative $9.6 billion.
Anthony Byrne (pictured), Head of Bond Markets at TISE, said: “Adding this transition offering to TISE Sustainable means that we offer a comprehensive sustainable finance segment for environmental, social, sustainable and transitional initiatives. We expect that this new offering will be particularly attractive to those companies operating in more emissions-intensive industries and who are seeking to demonstrate their role in the transition to net zero.”
A recent report published by Guernsey Finance, in conjunction with Baringa Partners, estimated that between $125 trillion and $350 trillion total investment is required to reach net zero by 2050 and identified the vital role that the financial services industry can play in achieving a just transition. TISE has also added to its list of environmental, social and sustainable qualifying credentials with the addition of the Guernsey Natural Capital Fund which was recently launched by the Guernsey Financial Services Commission (GFSC).