• Listed companies will be required to credibly commit to good green governance
• Companies can dually list alongside their primary exchange
• Listing standards embed a culture of green compliance directly into companies’ core governance structures

Green Exchange, PBC announced that it has initiated discussions with the U.S. Securities and Exchange Commission to register a new equities exchange, the Green Impact Exchange (“GIX”). GIX would be the first registered exchange dedicated to bringing together green investors and public companies who are committed to green corporate governance.

GIX will implement green listing standards that require public companies to credibly commit to good “green” governance. Expected to go live in 2023 upon approval by the Securities and Exchange Commission, GIX’s trading platform will enable investors to trade equities, like other major US equities exchanges. Companies that list on the GIX will not have to leave their primary exchange. Instead, they can dually list and enjoy the benefits of membership of both exchanges.

“Sustainable investors are looking to invest in companies that match their values, but don’t have tools to measure the seriousness of a company’s commitment to sustainability,” said GIX CEO Daniel Labovitz. “The GIX’s listing standards will change that. By agreeing to our listing standards, a company can credibly demonstrate its commitment to being green. Investors get the confidence that companies that do not meet their commitments can be delisted.”

See related article: MSCI and the London Stock Exchange Reject EU ESG Regulation Proposals

Image source: Green Exchange

“The proposed GIX listing standards are a major accomplishment because they embed green thinking and a culture of green compliance directly into a company’s core governance structures,” said Richard Ketchum, former CEO of the Financial Industry Regulatory Authority (FINRA), and an advisor to GIX. “That protects investors because it ensures that a company’s green commitment is not superficial.”

Green Exchange, PBC has closed an initial round of investments from a consortium of green-minded investors looking to “move the needle” on environmental and sustainable investing and incentivize the adoption of clear standards for companies that want to be “green.” It will use the funds to expand its marketing and customer outreach, and to continue pursuing SEC registration.

Source: Green Exchange, PBC