Head of Research and New Products of the Colombo Stock Exchange, Nishantha Hewawitharana said yesterday over the long term it is likely that sustainability reporting would become mandatory for the listed companies.
Hewawitharana was speaking at the National Consultation on Innovative Climate Finance Mechanisms for Financial Institutions in Sri Lanka at the Colombo Hilton Residencies. The event was organized by UNESCAP and the International Chamber of Commerce Sri Lanka.
Hewawitharana said that it would be better for local companies to partner with internationally recognized accreditation and reporting standards to help gain global traction. He said, “In this particular area partnerships do matter. Why? Credibility would be higher. To help listed entities we have launched voluntary guidelines. The voluntary word is very important. In 2019 it is voluntary but one day it will become mandatory. Don’t worry it will be done gradually.”
Hewawitharana said, “reporting matters will help companies attract quality investors. Especially long term investors.
An organization called Principles for Responsible Investment where asset managers can be members. The number of asset managers that are members has been growing steadily as to are their assets under management. Five years ago it was US$ 50 trillion, last year it was US$ 80 trillion, and this year US$ 90 trillion. It has over 2,500 asset managers.”
He added, “If you are high in terms of reporting quality as far as sustainability is concerned then you have great potential of attracting such investors.”
The apex body organizing sustainability drives for Stock Exchanges is the Sustainable Stock Exchange Initiative. The organization was formed in 2009 and the Colombo Stock Exchange joined as the 18th member in 2015. Commenting on the membership Hewawitharana said, “By joining we publicly showed our commitment in promoting sustainability in Sri Lanka.”
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