Green and sustainable finance offers benefits and opportunities for stock exchanges.
Green finance products have already been introduced in several markets and have seen tremendous growth, with green bond and green equity indices outperforming their non-green benchmarks.
Green finance is nevertheless still in its early stages: as of 2017 green equities were only about 5% of overall listed value and only around 0.2% of total bond issuance worldwide was made up of labelled green bonds.
This presents significant growth opportunities for exchanges and other market actors, with potential concomitant revenue growth opportunities, and in some markets this has allowed exchanges to strengthen their competitive position.
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