Recyclers potential candidates for ‘green’ stock exchange

The Jersey City, New Jersey-based Green Impact Exchange (GIX) has filed an application with the U.S. Securities and Exchange Commission seeking approval to function as the first stock market in the U.S. dedicated to the emerging $50 trillion-plus global green economy.

GIX intends to host listed companies that make a "binding commitment" to set, implement, measure and achieve sustainability goals and be transparent with investors about their progress.

Companies that want to be recognized for their commitment to sustainability can dually list on GIX without giving up their primary listing exchange, according to GIX.

“Today’s filing is a major step forward for sustainable investors and capital markets,” GIX co-founder and CEO Dan Labovitz. “GIX will connect investors who care about sustainability with companies that are credibly committed to becoming and being sustainable.”

Although the word “recycling” does not appear in the mid-July news release announcing the SEC filing, previous statements from GIX indicate collectors, processors, sellers and consumers of recycled materials are likely candidates to list on the exchange if it comes to fruition.

“Environmentalism as a concept includes a focus on green energy, energy efficiency, water conservation, environmental conservation, supply chain management and last but not least circular economy (recycling),” GIX said in a LinkedIn post in March, timed in coordination with Global Recycling Day as celebrated by the Bureau of International Recycling.

“Capital markets have historically enabled companies to efficiently raise needed capital for business development and innovation," GIX co-founder Charles Dolan says. "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.”

GIX says its listing standards create accountability for companies by requiring an internal governance infrastructure that supports their sustainable promises.

“Investors can rely on GIX to distinguish between companies that are serious about sustainability and companies that are greenwashing,” it adds.

“Accountability for sustainability promises is key,” says Shiva Rajgopal, a Columbia Business School professor who also serves as a GIX Advisor. “The marketplace needs a 'trust but verify' approach to help reduce greenwashing.

“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 realized, there needs to be better transparency and accountability of sustainability initiatives and reporting. GIX will provide that.”

GIX will offer nontiered, competitive liquidity and quoting programs and will be part of the National Market System of order fulfillment and equity trading.

More information about the Green Impact Exchange, including access to the SEC document acknowledging the recent filing, can be found here.