The Green Impact Exchange (GIX) has filed an application with the US Securities and Exchange Commission seeking approval to become the first stock market in the US dedicated to the emerging $50trn global green economy.
GIX said it would list companies that make a binding commitment to set, implement, measure and achieve sustainability goals, and be transparent with investors about their progress. Companies that wish to be recognised for their commitment to sustainability will be able to dually-list on GIX without giving up their primary listing exchange.
“Capital markets have historically enabled companies to efficiently raise needed capital for business development and innovation. GIX will harness the power of markets to benefit the environment, improve investor protection and drive economic growth as the world shifts toward a greener economy,” remarked GIX co-founder Charles Dolan.
GIX said its listing standards “create accountability for companies” by requiring an internal governance infrastructure that supports their sustainable promises. Further, investors “can rely on GIX to distinguish between companies serious about sustainability and greenwashing companies”.
Additionally, the GIX trading platform will be powered by technology that should allow them to offer non-tiered, competitive liquidity and quoting programs for members and market makers. As part of the National Market System, GIX said it hoped to “ensure best execution for all trades directed or routed to the exchange”.
They are also expected to implement a Return to Green programme that commits a portion of its gross revenue to support organisations on the front lines of sustainability efforts.
“Accountability for sustainability promises is key. The marketplace needs a ‘trust but verify’ approach to help reduce greenwashing,” commented Shiva Rajgopal, Columbia Business School professor and GIX advisor.
“There’s a tremendous financial opportunity to bring together sustainable-minded investors with companies working hard to meet their environmental commitments. For that opportunity to be realised, there needs to be better transparency and accountability of sustainability initiatives and reporting. GIX will provide that.”
