Good business practices on environmental, social and governance (ESG) standards will be introduced into Fiji’s capital markets through an agreement between the South Pacific Stock Exchange (SPX) and the International Finance Corporation (IFC) with support from the governments of Australia and New Zealand.
The partnership, announced yesterday, is expected to drive investment and contribute to inclusive, sustainable economic growth by aligning the capital market with global standards.
“Strengthening policies in accordance with the best industry practices is fundamental in creating a strong and dynamic capital market,” SPX executive director Gyanesh Rueben said.
“This is an exciting opportunity for the SPX to participate in this world-class training of trainers in Fiji, enabling us to help local trainers to improve their knowledge which will help create stronger businesses and better investment opportunities. We are delighted to be working with IFC to encourage and promote best industry-based practices in Fiji capital market.
”Through the agreement, IFC will provide in-depth technical assistance to the SPX, training its staff and associates on good international industry ESG practices. The collaboration will also result in the development of an ESG curriculum for training organizations.
“Investors are increasingly paying more attention to ESG standards,” IFC country manager for Australia, New Zealand, Papua New Guinea and the Pacific Islands, Judith Green said.
“It is well known that companies with robust ESG practices tend to outperform their peers, are better prepared for uncertainty, avoid regulatory interventions, and maintain their social license to operate.”
Australia’s High Commissioner to Fiji and Special Envoy for the Pacific and Regional Affairs, Ewen McDonald said Australia is pleased to support the partnership and help strengthen Fiji’s private sector.
New Zealand High Commissioner to Fiji Charlotte Darlow said as a key driver of economic development, the private sector can help create resilient and sustainable growth by embracing ESG standards.
IFC’s collaboration with the SPX comes under a broader initiative which aims to improve ESG practices and performance across the Pacific, increasing awareness and access to training and advice, ultimately facilitating increased investment in the private sector.
