The new stock exchange dedicated to sustainable investments is one step closer to its opening after receiving support from the U.S. Securities and Exchange Commission.
Green Impact Exchange (GIX) said in a statement Monday that the SEC has approved an amended application to register as a national stock exchange. A SEC spokesperson confirmed the approval of the application. The exchange is expected to start trading early next year.
GIX is taking steps to open up during difficult times for sustainable investment. In the past week alone, almost $5.7 billion has been drawn from funding in the exchange industry focused on environmental, social and governance, according to data compiled by Bloomberg. Barclays analysts say it sold “strengthening” since February, with roughly $9 billion withdrawing from sustainable stock funds last month.
However, the founders of GIX hope that global demand will ultimately grow as investors consider the economic implications of climate change.
“U.S. investors and businesses continue to pursue sustainability because they have a financial and competitive meaning,” said Charles Dolan, co-founder of GIX, in a statement. “Public markets like GIX play a pivotal role in connecting sustainable investors with companies that understand it.”
There are indications that money is flowing back into parts of the market for green investments. Venture capitalists and private equity companies invested more than $5 billion in climate technology startups across the US in the first quarter, according to data from Market Intelligence firm Pitchbook.
The GIX will be the first exchange in the US dedicated to the sustainability economy. The SEC’s approval order is “an important step for sustainability-oriented investors and businesses,” says Dan Labovitz, another co-founder of GIX, serving as CEO.
Prior to its launch, GIX is working with financial industry regulators to help deploy the necessary regulatory services, according to Labovitz. The exchange will dual list companies working on sustainable governance and transparency, he said.
“We’ve been in contact with hundreds of businesses over the past 18 months,” Labovitz said. “Companies that operate globally are also aware that in order to remain competitive, they must continue to advance to make their businesses more sustainable, and they have not seen evidence of a slowdown on the ground.
– With the support of Lydia Beyoud.
