The Impacts, Challenges and Opportunities of Sustainability within Securities Services

Amidst the evolving landscape of global markets, the integration of Environmental, Social, and Governance (ESG) factors has emerged as a pivotal force reshaping business worldwide. Nowhere is this transformation more profound than within the Securities Services industry, where the principles of ESG are catalyzing a paradigm shift in business practices, product strategies, and compliance and regulatory frameworks. As a result, ISSA created Sustainability in Securities Services Working Group (WG) whose aim is to help both its members, and the broader industry better understand ESG in the context of Securities Services.

One of the objectives of the WG has been to outline the current challenges, risks and opportunities of ESG as they relate to the Securities Services industry. The WG participants therefore created a paper, whose primary objective is to serve as an educational resource for professionals navigating the intricate intersection of ESG principles and Securities Services. It endeavours to elucidate how ESG considerations permeate every facet of industry operations, from governance structures and risk management frameworks to stakeholders’ preferences and regulatory compliance mandates. By providing comprehensive insights and practical guidance, this paper aims to empower industry professionals to effectively harness ESG factors as drivers of sustainable growth and resilience.

Ultimately, this paper seeks to equip industry professionals with the knowledge and tools necessary to navigate the complex terrain of ESG related challenges and capitalize on emerging opportunities. By fostering a deeper understanding of the interconnected nature of environmental stewardship, social responsibility, and effective governance, the aim is to foster a culture of sustainable practices and responsible investment within the Securities Services industry.