ESG Standards in Securities Services

Scope

In 2023, the ESG Standards in Securities Services WG will focus on two key topic. It will share information and create a base understanding of ESG requirements impacting the Securities Services industry through two phases.

The first phase will be an exercise to educate and level set with the Working Group participants on the key ESG concepts. The second phase will be to understand the impacts opportunities and problem statement.

In-scope for Phase I will be:

• To provide an explanation of ESG concepts
• To outline the flows and the roles of each player in the investment lifecycle (plus use cases where helpful)
• To assess the impact of ESG on the Securities Services industry and the implications of this

Out-of-scope for Phase I will be:

• Defining ESG standards
• ESG investment strategies

In-scope for Phase II will be:

• To outline the current challenges, risks and pain points of ESG on the Securities Services industry
• To assess which ESG services and solutions exist and what is missing
• To review regional differences and the impacts of this

Out-of-scope for Phase II will be:

• Defining ESG standards
• Proposing a global solution

Key Deliverables

Education and Level Set

• A short presentation providing an explanation of ESG concepts, outlining the impact of ESG, and the implications of this, on the Securities Services industry

Impacts Opportunities and Problem Statement

• A report summarizing the current challenges, risks and pain points of ESG as they relate to the Securities Services industry, as well as highlighting which ESG services and solutions exist and where there may be gaps

Key Outcomes

• To educate the ISSA membership on the meaning of ESG
• To ensure understanding of the impact of ESG on the Securities Services industry

Collateral

ISSA- The-Securities-Services-ESG-Glossary- November 2023

Working Group Co-Chairs

• Flora Belladonna, BNP Paribas
• Hai Jade Fuan, Standard Chartered

Executive Sponsor

• Margaret Harwood-Jones, Standard Chartered

Institutions Represented by Experts in the Working Group

• B3 Brazilian Exchange and OTC
• Bloomberg LP
• BNP Paribas S.A.
• Central Securities Clearing System Plc
• Chongwa (Macao) Financial Asset Exchange Co. Ltd.
• Datos Insights
• Deutsche Bank AG
• Deutsche Börse Group
• Euroclear
• Central Securities Clearing System Plc
• Central Securities Depositories Association ECSDA
• FMDQ Group PLC
• Greenomy
• Intesa Sanpaolo S.p.A.
• JP Morgan Chase & Co.
• McKinsey & Company
• Myriad Group Technologies Ltd
• Nasdaq Inc.
• Northern Trust Corporation
• NowCM
• Proxymity
• S&P Global / IHS Markit
• SEB Group
• Standard Chartered Bank
• Taiwan Depository & Clearing Corporation
• Tata Group
• The Depository Trust & Clearing Corporation
• The Standard Bank of South Africa
• UBS Group AG
• U.S. Bank N.A.