Since joining the Sustainable Stock Exchange Initiative in 2017, the Mongolian Stock Exchange has been actively working to introduce sustainable financing principles to the stock market and to create regulations to support issuers that comply with sustainable development goals in their rules and regulations in order to improve the positive impact of listed companies on the environment and social governance.

In the framework of this goal, according to the amendments to the Securities Registration Regulations approved on May 10, 2022, issuers that comply with the United Nations Sustainable Development Goals (SDGs) and comply with the Green Taxonomy will be exempted from certain registration criteria and requirements, as well as registration fee reductions. In addition to the new regulations, the "Procedure for Information Delivery by Securities Issuers to the Public" has been developed and implemented from June 24, 2022. The new regulation introduced the ESG or Environmental, Social and Governance (ESG) reporting standard, and thus companies registered in the MSE had the opportunity to report their ESG reports to investors in accordance with the reporting standard.

According to a survey conducted in 2021, 13 percent of 42 companies listed on the Mongolian Stock Exchange report their ESG indicators to the public, and if the surveyed companies are provided with guidelines for measuring their impact on the environment, society, and governance, and support to strengthen their capabilities, ESG and sustainability reporting will become an international standard and expressed his desire to develop according to the standard.

In order to provide issuers with ESG reporting methodology, MSE has issued "ESG and Sustainability Reporting Guidelines" in cooperation with the FRC, International Finance Corporation, United Nations Development Program, and Sustainable Finance Alliance.

Researchers, experts and representatives of professional organizations emphasize that the guideline for business organizations includes a list of sustainability reporting criteria, reporting methods and information on international trends and practices, and is an important guideline for companies operating in Mongolia to evaluate their achievements, determine their level of impact, and expand their space for growth.

Please click here for "ESG AND SUSTAINABILITY REPORTING STANDARDS"

MONGOLIAN STOCK EXCHANGE