This week saw the publication of the latest progress report as part of the  Sustainable Stock Exchange Initiative sponsored by Aviva Investors.  The report by Responsible Research surveyed 27 of the largest stock exchanges across world markets to assess attitudes towards the role of stock exchanges in promoting corporate sustainability reporting.

The research showed an increase in interest on the part of stock exchanges  in encouraging CSR reporting from an already high level in the previous report, with 76% acknowledging their responsibility in this regard, compared to 70% in 2010. Even more encouragingly, 80% would welcome a global approach to sustainability reporting standards, looking to global policy makers for a lead on this.

Unfortunately, the research also revealed nearly half the stock exchanges referred to levels of  "investor ambivolence" as an inhibiting  factor to further development. Despite 57% of respondents agreeing that strong ESG reporting standards make "strong business sense",  the economic facts are that sustainability intitiatives are not money-spinners. It's the investors who bring the money to the table and there is no such thing as free sustainable reporting standards. There is clearly a need for more explicit demand on the part of investors.

Furthermore, not all stock exchanges are as powerful as they feel they need to be in driving better standards of sustainability disclosure - especially where regulatory authority lies with financial regulators and legislators. Clearly, this implies the need for regulatory input beyond the stock exchanges, especially in the form of guiding principles.

A pessimist might say that there is a danger of this being another illustration of the difference between the common weal and the financial wheel.  As the gatekeeper of access to capital, stock exchanges have an important function to play in the overall picture - that is the premace of the SSEI. Clearly, they are keen to play it. As economically rational animals, they'll be more likely to push the boundaries if their members clients and stakeholders drive demand.