The BSE ESG index will give companies global visibility to investors around the world
A Bulgarian stock exchange, together with a partnership with the former company Refinitiv, which is now called LSEG Data & Analytics, has developed an ESG index that is expected to be operational by the end of the year. Companies that will receive an ESG rating will do so voluntarily. These will be the largest companies included in the main stock market indices that are traded in the premium market. With the help of the ESG index, they will gain much more visibility globally to investors around the world.
This was announced by Prof. Dr. Manyu Moravenov, CEO of the Bulgarian Stock Exchange, from the rostrum of the most successful forum for green transition - "Green Transition Forum 4.0 - New perspectives for Central and Eastern Europe", organized for the fourth year in a row by Dir.bg and 3E News. The three-day conference was held from June 26 to 28 in Sofia's Event Center. During the event, more than 2,500 people, including more than 750 top managers from 18 different countries, held the key conversation about tomorrow's world.
On the first day of the forum, Prof. Dr. Manyu Moravenov participated in the session "The price of the green transition". Doreen Badea, Senior Expert on Investments and Capital Markets in CEE, Romanian Development and Investment Bank, Edward Randolph, Director of Investments, Amber Infrastructure, Member of the Investment Board, Eneri, Kalina Kisiova, General Manager, also appeared on the conference stage with him. "Corporate and SME products and business development", UBB, and Mila Nenova, executive director, Bulgarian Investment Agency, and the moderator was Iliana Andronova, deputy. Head of Department "Strategic Development and Green Policies", BBR.
At the beginning of his speech, Prof. Dr. Manyu Moravenov made it clear that he presented the point of view of both the Bulgarian Stock Exchange and the Bulgarian Stock Exchange group, which also includes the Bulgarian Independent Energy Exchange, including the Center for Sustainable Finance and energy.
"The main burden of the green transition will pass through private capitals. It is clear that public capitals will have their function and they already have it. At the same time, the banking system, including in Bulgaria and in Europe, is extremely developed and is the basis of financing of companies. Projects related to the financing of small companies are very important. However, the main burden of the transition will be through scale. The large steps will be made through large-scale financing, which is possible only through efficient capital markets. ", Assoc. Dr. Moravenov began.
He pointed out that there are 5 large exchange groups in Europe, about 2-3 medium ones and about 7-8 small ones. For about 10 years, the so-called Capital markets union project has been developing at the level of the European Union, which is extremely important, but is developing slowly. According to him, serious steps must be taken - administrative, regulatory, for the integration of the stock markets in Europe, a good example being the energy markets.
"The Bulgarian Stock Exchange is one of the drivers of this process at the level of Central and Eastern Europe and participates very actively in the talks on the integration of the stock exchanges in the region. Of course, this process is long. In the meantime, we must do something for Bulgarian business, for Bulgarian opportunities for Bulgarian companies. On the one hand, we have been actively working for more than 3 years to standardize the way in which Bulgarian companies will disclose information and be transparent about their sustainability. On the other hand, we are looking for opportunities to increase access to capital these companies, including through the partnerships we have and through the new EuroBridge segment we created together with our long-standing partner Deutsche Börse in Frankfurt," said Assoc. Dr. Manyu Moravenov.
Unleashing the full potential of EuroBridge is closely linked to the ESG index and the rating.
The segment, launched in April 2024, represents a kind of "fast track" for companies that want to be traded simultaneously on both stock exchanges in Bulgaria and Germany, with direct access to investors from all over the world. Taking advantage of EuroBridge, leading Bulgarian companies would gain new opportunities for growth, greater visibility and trust among investors, easier access to global capital, market valuation and liquidity, as well as easier talent attraction. Along the line of sustainability, the commitment of EuroBridge companies is growing exponentially, but voluntarily, following also market trends, according to which the success of the business depends directly on the evaluation of potential investors and partners for the efforts made on the path of sustainable growth. The more transparent and structured a company's ESG data is, the more recognizable and sought after it becomes. The ESG index and rating are a key tool through which the Bulgarian Stock Exchange helps businesses achieve this much-desired recognition on a pan-European scale.
"Because companies, in order to still be defined as sustainable, there must be some criterion, in this case specifically for the listed company of the exchange, the Bulgarian Stock Exchange, together with a partnership with the former company Refinitiv, which is now called LSEG Data & Analytics, developed an ESG index. It can work at any moment. Companies that will receive an ESG rating will do so voluntarily at this stage These will be the largest companies, the companies that are included in the main indices of the stock exchange, are traded on the premium market," explained Assoc. Dr. Moravenov.
The very way this will happen is through the LSEG methodology. In practice, one information disclosure procedure goes through several levels. It helps companies to organize themselves, to see where their weak points are, if any policies need to be further developed. It helps them structure themselves well in terms of monitoring their sustainability as well as disclosure.
Because it is a global platform like LSEG, companies that receive such a rating will have much greater visibility globally to investors around the world. From Bulgaria's point of view, together with the Center for Sustainable Finance and Energy, the Bulgarian Stock Exchange will determine the best ones that will enter the future ESG index.
"I hope that this will happen towards the end of this year," concluded Assoc. Dr. Manyu Moravenov.
In parallel, the Bulgarian Stock Exchange continues to explore opportunities to develop a segment for instruments related to sustainability, including green bonds.
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The largest and most significant conference on the Green Deal "Green Transition Forum 4.0: New perspectives for Central and Eastern Europe (CEE)" is organized by Dir.bg and 3E-news. The forum was held from June 26 to 28. Representatives of more than 18 countries appeared on the conference stages in Sofia Event Center, with a total of more than 2,500 participants, of which more than 750 top managers, held the key conversation about tomorrow's world.
The event is organized by Dir.bg and 3E-news in partnership with ACT Commodities, ProCredit Bank, Visa, European Investment Bank, Elektrohold, Yettel, Artex Engineering AD, UBB, Aurubis Bulgaria, Glavbolgarstroy Holding, Bulgarian Stock Exchange, UniCredit Bulbank, Bulgarian development bank, Geotechmin, Energeo, MET Energy Trading Bulgaria, Dundee Precious Metals, FLAG Fund, ICGB, The Oil and Gas Employers" Federation, Electric Power System Operator, Bulgartransgaz, Fund of Funds, Bulgarian Energy Holding EAD, Kozloduy NPP, Westinghouse, Philip Morris Bulgaria, BMF Port Burgas AD, Information Service, Bulgarian Natural Gas Association, REIB, PCONTRADE, Omega Power Group, PHOTOMATE, OMV Petrom, Bulgarian Recycling Association, TTS (Transport Trade Services) S.A, Morningside Hill, CWP Global , DEVIN, Smart Energy Trade.
Green Transition 2024 is implemented with the media support of BNT, BTA, BNR, bTV Media Group, Vulgarіa ON AІR, Investor.bg, Darik Radio, Darik Business Review, Euroactive, Economic.bg, ESGnews.bg and The Recursive.