The World Federation of Exchanges (WFE), the global industry association for exchanges and clearing houses, has today published industry-backed Transition Equity Principles for exchanges globally.
The WFE Transition Equity Principles, which are supported by WFE Members, spanning exchanges in every jurisdiction and continent, set out a guiding framework for Exchange Designations that create a hallmark for listed companies that are on credible decarbonisation pathways.
Achieving the unprecedented levels of investment needed to decarbonise economies will depend heavily on capital channelled through financial markets. As the designers, operators, gatekeepers and guardians of regulated equity markets, exchanges play a key role in creating vital market integrity, credibility, price discovery, liquidity and transparency.
The WFE has developed the Transition Equity Principles in response to global demand for offerings that support credible transition pathways and capital allocation towards Net Zero. The WFE Transition Equity Principles mark an important step in exchanges’ efforts to support and grow access to transition finance across public markets, building on the WFE Green Equity Principles, first published in 2023, and the WFE’s Practical Guide for Issuers on Accessing Transition Finance, published earlier this year.
The WFE Transition Equity Principles will guide the establishment by exchanges of Transition Equity Designations, which improve access to capital for companies pursuing decarbonisation objectives and provide investors with decision-useful information on issuers’ transition pathways.
The WFE Transition Equity Principles will bring clarity, consistency and rigour to the concept of transition equities and will contribute to international recognition among various offerings, thereby supporting cross-border investment activities.
The WFE Transition Equity Principles have been developed with input from the WFE's Transition Equity Principles Consultative Committee, made up of WFE Members and industry experts. The WFE’s Sustainability Working Group, a practitioner group of Chief Sustainability Officers and leaders at WFE Members, have led the work. Once the Principles have been finalised, the WFE will publish supporting Guidance to accompany the Transition Equity Principles.
Nandini Sukumar, Chief Executive Officer of the WFE, said: “We are in the time of transition. Unlocking the level of capital needed for the transition will require leadership and market design by public markets. The WFE Transition Equity Principles will bring greater consistency and credibility to transition equity offerings, while helping to build confidence among issuers, investors and other market participants.”
The Principles are available here and will be presented at the WFE’s Annual Sustainability Conference in Luxembourg on 3-4 June 2026.
The WFE intends to formally consult on the Principles in due course. If you would like to register for updates on the WFE Transition Equity Principles and consultation, please sign up here.
