UN Secretary-General Ban Ki- moon on Monday urged leaders of stock exchanges and financial institutions to better manage and integrate environmental, social and governance (ESG)
issues into their business practices.
In a video message to a gathering at the United Nations Headquarters of more than 60 top executives from around the world, Ban said that these so-called "ESG" issues are critical in creating a world economy that is more stable, inclusive and sustainable.
"Stock exchanges and other financial bodies and institutions have a key role to play," he told the group, which is meeting to explore ways in which stock exchanges can promote sustainable business practices and long-term approaches to investment.
Ban made an unannounced visit on Monday to the Afghan capital of Kabul, where he met with United Nations staff in the wake of last week's attack that left five UN staff dead and nine others wounded, and assured the Afghan people of continued UN support during a meeting with Afghan President Hamid Karzai.
In his video message, the secretary-general welcomed the steps already undertaken by participants to incorporate ESG considerations into new stock indexes, listing rules and regulatory frameworks, and said he hoped the
meeting will inspire even further efforts.
The secretary-general also highlighted the "unprecedented" partnerships forged between the UN and the business and financial communities in recent years.
Among them is the UN Global Compact, the world's largest corporate sustainability and responsibility initiative, which currently involves over 5,000 companies across 130 countries.
Another is the UN-backed Principles for Responsible Investment - - a set of voluntary actions for incorporating ESG issues into mainstream investment decision --making and ownership practices that today includes more than 600 institutional investors with assets of more than 18 trillion U.S. dollars.
A report released in July by the UN Environment Program (UNEP) and a powerful group of asset managers controlling some 2 trillion U.S. dollars in assets argued that if investment consultants and others do not incorporate ESG considerations into their services, they face "a very real risk that they will be sued for negligence. "
It also stressed the central role that the world's largest institutional investors -- including pensions funds, insurance companies,
sovereign wealth funds and mutual funds - have in easing the transition to a low-carbon and resource-efficient green economy.
The Monday meeting is co-hosted by the Global Compact, the UN Conference on Trade and Development (UNCTAD) and the UN-backed Principles
for Responsible Investment.