Nasdaq report: Sustainability revenues up to $ 137 m in 2023

18 / 06 / 2024

By Marwa Nassar - -

Nasdaq 2023 Sustainability Report said that sustainability revenue has grown rapidly over the past four years, reaching $137 million in 2023 at a 16% rise compared to 2022.

The report said that Nasdaq’s project that sustainability revenue will reach $250 million by 2027, with growth driven by market demand as the corporate and investment communities look for solutions to help them navigate the evolving ESG landscape.

The report added that its climate-related opportunities associated with its ESG-related revenue growth are concentrated within its Capital Access Platforms and Market Services segments, which encompass the climate-related products and services below. It will continue to evaluate climaterelated opportunities while monitoring our ESG products and services revenue growth.

Nasdaq endeavors to support the shift toward sustainable capital markets by educating our clients on ESG considerations, sharing its issuers’ perspectives with the industry and regulators, and providing a growing portfolio of ESG-focused marketplace solutions that help clients in the corporate and investment communities achieve their own ESG objectives. Over the past several years, ESG has been a strategic growth driver for the Company, with its ESG Advisory services well positioned as a client entry point for its larger suite of climate-related products and solutions, the report said.

“Nasdaq’s approach to ESG is focused both internally and externally. Internally, we manage our businesses’ ESG-related risks and opportunities and the corresponding impact we have as an organization across our own operations. Externally, we focus on the impact we have on the world through our ESG-related solutions that support our clients’ objectives in their sustainability journey,” said Nina Eisenman, Vice President, Head of Corporate ESG Strategy and Reporting, Nasdaq.

Nasdaq is focused on solidifying business resilience and driving sustainable growth by managing and reducing long-term risks and advancing Environmental, Social and Governance (ESG) practices across our entire organization.

Within its environmental activities, Nasdaq is committed to minimizing its environmental footprint, meeting its net-zero goals, and solidifying its business against long-term risk. It aims to implement initiatives to decrease our greenhouse gas (GHG) emissions, while ensuring transparency of its processes and programs that help it reach its long-term targets.

“Our commitment to reducing our emissions to meet our verified science-based targets drives our environmental programs and priorities,” said Jase Gregoric, Senior Director, Global Head of Corporate Sustainability, Real Estate, Facilities & Security, Nasdaq.

Across its social initiatives, Nasdaq grew as it integrated Verafin and Adenza. As a result, Nasdaq’s inclusive culture is driving a new era where its three high-performing organizations are now working together to bring new solutions and capabilities to its clients.

“In 2023 and 2024, we welcomed new colleagues to Nasdaq through the integration of Verafin and Adenza, expanding our teams across 38 countries. Our team’s excitement is evident in our record high employee engagement and historically low turnover, signaling a collective commitment to this transformative journey,” added Bryan Smith, Chief People Officer, Nasdaq.

And finally, Nasdaq’s robust corporate governance structure is essential to its mission of building stronger economies. It remains dedicated to its long-standing tradition of ethical, forward-thinking governance practices, transparent disclosures, and effective Board performance, which Nasdaq believes benefits all its stakeholders, including shareholders, employees, clients, and the communities it serves.

“Nasdaq’s sound corporate governance structure is key to how we help create stronger economies, encourage more equitable opportunities, and contribute to a more sustainable world,” said John A. Zecca, Chief Legal, Regulatory & Risk Officer, Nasdaq.

Through our ESG initiatives, Nasdaq achieved several notable highlights in 2023, including earning a place on CDP’s Climate Change “A List” — recognition of its leadership in corporate transparency and performance on climate change.

In 2023, Nasdaq continued it carbon neutrality program for the sixth consecutive year, in addition to launching new career development and training initiatives for its workforce designed to deepen employee engagement.

It also published its first Transition Plan Taskforce (TPT)-aligned climate transition plan index.

How Nasdaq supports its clients sustainability journeys:

Nasdaq’s unique position in the corporate and investment communities enables it to support its clients in achieving their ESG-related goals. It assists public and private companies throughout their ESG lifecycle, helping them navigate the capital markets and a complex shareholder landscape.

Additionally, it provides workflow, data, and analytics capabilities to asset owners and managers to enhance their decision-making processes and help financial institutions manage their ESG reporting and disclosure obligations.

Nasdaq’s support for its clients’ sustainability journeys in 2023 included introducing eVestment ESG Analytics and launching Nasdaq MetrioTM and Sustainable LensTM.

Moreover, Nasdaq held its inaugural New York Climate Week conference at MarketSite and its inaugural Stockholm ESG Summit at the Stockholm Nasdaq Office.

It also published a report on “The State of Sustainability and ESG.”

What are positive Economic, Environmental and Societal Outcomes in 2023:

We strive to enable positive outcomes through the broader economic and societal impact of our solutions and services – creating opportunities for businesses to grow, addressing the world’s growing financial crime problems, and making sure our markets are resilient.

As a world-class market operator and premier technology provider serving the global financial ecosystem, our Financial Technology division is at the heart of Nasdaq’s purpose to power stronger, safer, and more inclusive economies.

Nasdaq enabled positive outcomes in 2023 by pioneering a carbon trading and registry technology to expand our capabilities beyond carbon trading with digital issuance, registry, settlement, and custody.

Moreover, it integrated AxiomSL to help firms manage fast-moving ESG reporting and disclosure obligations in addition to publishing Nasdaq’s Global Financial Crime Report to examine the state of financial crime, its deep human impact, and how it threatens the integrity of global financial system.

It also providing grants to more than a dozen organizations through the Nasdaq Foundation and supporting critical projects through the New Investor Initiative. 

“Overall, Nasdaq strives to enable positive outcomes through the broader economic and societal impact of our other solutions and services – addressing the $3 trillion financial crime challenge, making sure our markets are resilient and able to power opportunity through the world, and supporting our communities through purpose-led initiatives aimed at advancing economic progress for all,” concluded Eisenman.