Nasdaq CEO talks about the importance of ESG and disclosure

On the issue of ESG, Ms. Adena Friedman, President and CEO of NASDAQ, not only made ESG one of the important goals of NASDAQ, but also successfully made ESG the focus of more NASDAQ-listed companies.

Recently, Just Capital, an authoritative research institution in the United States, released the "Just 100" ranking, which evaluates and ranks the ESG-related activities of enterprises based on indicators such as fair pay, sustainable development and poll data of the American people. Among them, Nasdaq was selected for the first time, ranking 91st, and many companies listed on the NASDAQ also occupied a place in the "Just 100" ranking.

In an interview with the Consumer News and Business Channel (CNBC), Ms. Adena Friedman also shared the importance of ESG and disclosure.

Ms. Adena Friedman: Every business is at different stages of its life cycle. Young, growing businesses may focus and prioritize achieving business success. The issue of capital requires us to consider the realization of shareholder returns and to ensure that the company operates with the interests of all parties in mind.

In addition to the goals described above, these young businesses can still focus on the path to achieving them. Sometimes, achieving goals may require significant funding, but certain aspects are not needed, such as employee community engagement, corporate governance methods, and corporate management methods that emit carbon emissions. It's not just successful companies that have the opportunity to prove themselves.

Ms. Adena Friedman: We are disclosure economies. The U.S. Securities and Exchange Commission (SEC) and public markets require disclosures designed to help investors make informed choices. Some companies believe that they should be good in a certain aspect before disclosing. In fact, Nasdaq recently disclosed the company's diversity data. This is not something that needs to be disclosed, but we still choose to disclose this data to investors where there is room for improvement, showing our progress in diversification.

Investors appreciate companies that proactively present this information. While many companies have put the ESG business on the agenda, people are paying more attention to the ESG construction process of these companies. The development of ESG has entered a new stage, and the speed and influence of enterprise progress have been paid more and more attention. Disclosure is a key channel for us to understand the development of corporate ESG.

This article originated from the financial world