No turning back from ESG
The transition to a CSE sustainable model is a one-way path, according to Cyprus Stock Exchange President Marinos Christodoulides, who stresses that transparency and corporate responsibility are now prerequisites for competitiveness.
In an interview published in the annual Corporate Social Responsibility edition of Economy Today magazine, Christodoulides outlines the dual role of the Cyprus Stock Exchange (CSE) in the evolving ESG landscape.
He explains that the CSE operates both as a platform for attracting capital to companies adopting responsible practices and as a promoter of transparency, accountability and corporate responsibility.
The CSE actively participates in international initiatives promoting ESG criteria and, through its Corporate Governance Code and disclosure policies, encourages listed companies to meaningfully integrate sustainability principles into their operations.
Privatisation as a strategic opportunity
The ongoing privatisation process of the CSE is described as a strategic opportunity to modernise and strengthen the organisation’s role.
According to Christodoulides, the entry of private capital and potential partnerships with strategic investors will allow the CSE to invest in technological infrastructure, new products and services.
By enhancing competitiveness, the Exchange can attract new companies and investments, while supporting sustainable entrepreneurship and green financial instruments under the broader CSE sustainable model strategy.
Capital market as driver of green growth
Christodoulides notes that capital markets internationally act as engines of economic growth. In this context, Cyprus’ capital market can function as a lever for sustainable development, provided companies active in sustainability sectors are encouraged to grow through the Exchange.
The CSE offers multiple markets – the Regulated Market, the Emerging Companies Market (NEA Market) and the Bond Market – enabling companies of all sizes to raise capital.
The Exchange has also significantly reduced fees for the listing of Green Bonds and has already welcomed the first certified green bond, with additional companies examining this option.
Transparency as an investment in credibility
Recent amendments to Cyprus’ Transparency Law and the Companies (Amendment) Law of 2025 incorporate new EU requirements on sustainability reporting and ESG disclosures.
Large and listed companies will be required to present how sustainability issues affect them and how they impact society, under unified European reporting standards and stricter verification requirements.
Although the transition remains ongoing, Christodoulides observes growing interest among companies to comply with ESG criteria, recognising that it is not merely a regulatory obligation but a strategic investment enhancing competitiveness and reputation.
He highlights strong participation by listed companies in a recent CSE presentation on sustainability assessment and ESG data tools.
Energy initiatives and green finance
The CSE is also actively involved in energy-related initiatives supporting green growth.
Among its actions:
• A 10% investment in the Hellenic Energy Exchange (HEnEx), with active participation on its Board of Directors.
• Acting as auctioneer for Cyprus’ greenhouse gas emission allowances, under agreement with the Ministry of Agriculture, Rural Development and Environment.
• Reduced listing costs for Green Bonds.
• Clearing services for the Competitive Electricity Market, following an agreement with the Cyprus Transmission System Operator.
These initiatives align the capital market with Cyprus’ and the EU’s broader environmental and energy policy objectives, reinforcing the CSE sustainable model framework.
Solutions for SMEs
Small and medium-sized enterprises often face difficulties in implementing green investments. Christodoulides notes that the NEA Market, established in 2011 as a Multilateral Trading Facility licensed by the Cyprus Securities and Exchange Commission, offers more flexible listing criteria for start-ups and family businesses.
SMEs may also list on the Alternative Market within the Regulated Market structure.
Through tools such as Green Bonds and reduced listing fees, the Exchange seeks to facilitate access to capital for SMEs pursuing sustainable projects.
Investing in financial literacy
Corporate social responsibility is closely linked to financial education.
The CSE promotes financial literacy through educational programmes, seminars, partnerships with universities and schools, and participation in international initiatives, aiming to cultivate a culture of responsible investment and informed decision-making.
An information event on prospects, strategic programmes and investment options through the CSE will take place on 29 May 2025, with a similar event scheduled in Athens in December 2025.
Message to businesses
Christodoulides calls on Cypriot businesses to embed sustainable development projects and ESG principles into their core operations.
Transparency, responsible corporate conduct and sustainability are no longer optional, he stresses, but essential conditions for attracting capital, strengthening reputation and ensuring long-term resilience.
Also read: Competition protection key for a sustainable electricity market
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