9. 3. 2023

Prague Stock Exchange launches sustainability reporting guidelines

The PSE launches its first Environmental, Social and Governance reporting guidelines (ESG) for Czech companies, developed with the technical assistance of the European Bank for Reconstruction and Development (EBRD) and technical cooperation support from the TaiwanBusiness – EBRD Technical Cooperation Fund. The guidelines are intended to help provide issuers with clarity on how to approach non-financial reporting in light of investors' environmental, social and governance expectations.

Sustainability reporting has become an important element of the development of modern capital markets, with growing pressure from policymakers, regulators and investors to channel global financial flows towards sustainable investments. There is growing demand for more transparency on how issuers manage Environmental, Social and Governance risks, and, as a result, disclosure of non-financial information has become an essential tool for measuring how companies manage climate and sustainability risks.

“Sustainable investment has received growing attention in recent years. European markets are witnessing increasing pressure to implement environmental, social and governance criteria in investment strategies, and the Czech Republic is no exception. Given that non-financial reporting is one of the basic tools for companies to achieve sustainable development goals and in the absence of a uniform standard on reporting, we have decided to prepare guidelines together with our partners to help companies navigate the issue of non-financial reporting. For our listed companies, we will be preparing seminars together with our partners to further help make the implementation of non-financial reporting rules as easy and smooth as possible”, says Petr Koblic, CEO of the Prague Stock Exchange.

The Guidelines, prepared with the assistance of Frank Bold and Deloitte Czech Republic, seek to reflect international and regional regulatory requirements and best practice, and are the first in the EBRD region to take into consideration the latest European Union sustainable finance regulatory requirements.

“The EBRD is committed to supporting the Czech Republic in its transition to a low carbon and climate resilient economy in line with the EU sustainable finance package, and we are pleased to have been able to support our partner PSE in developing the ESG guidelines. The guidelines are timely given the growing demand globally for consistent and comparable ESG company data and the rapidly evolving regulatory landscape for sustainability reporting in the European Union. As investors increasingly seek long-term value and alignment with sustainability and climate-related objectives, we are confident that the guidelines will increase issuers’ awareness of sustainability reporting practices and will play a key role in supporting the transition to a climate-neutral and green economy, “says Victoria Zinchuk, Regional Head of Central Europe, EBRD

PSE welcomes this opportunity to facilitate Czech companies to understand, consider and report on ESG matters, in line with applicable regulatory requirements and best practice. The guidelines provide useful tool towards promoting responsible and sustainable investments across the Czech Republic capital market.