Shfe And Ine Join Un SSE To Advance ESG In Trading

In a landmark development for China’s financial markets, the Shanghai Futures Exchange (SHFE) and the Shanghai International Energy Exchange (INE) have become the first commodity futures exchanges from mainland China to join the United Nations Sustainable Stock Exchanges (UN SSE) initiative. The announcement was made by SHFE Chairman Tian Xiangyang during the 2025 Shanghai Derivatives Market Forum, signaling a significant strategic pivot towards global Environmental, Social, and Governance (ESG) standards within China’s burgeoning derivatives sector.

This move marks a critical step in aligning China’s key financial institutions with global sustainability practices. As part of the UN SSE initiative, SHFE and INE have committed to adopting international ESG best practices, actively supporting the United Nations Sustainable Development Goals (SDGs), and advancing China’s national agenda on sustainable financial reform. Their inclusion in this global network positions China as an increasingly influential player in ESG integration, particularly in the commodity and energy trading sectors — areas traditionally less associated with sustainable finance.

By joining the UN SSE, SHFE and INE have not only enhanced their institutional credibility but have also taken a leadership role in driving ESG transparency and sustainable investment practices within Asia’s commodities landscape. Their membership signifies a broader commitment to building a greener, more inclusive financial system, in line with the principles discussed at the Central Financial Work Conference in China. That conference emphasized the need for financial systems to prioritize green finance, digital innovation, and inclusive growth — pillars that now underpin SHFE and INE’s future direction.

Founded in 2009, the United Nations Sustainable Stock Exchanges initiative promotes collaboration among global exchanges to improve ESG disclosure and foster sustainable investment. With more than 130 members across the world, the SSE provides a platform for exchanges to learn from one another, share best practices, and accelerate the integration of ESG principles into mainstream finance. The addition of SHFE and INE brings new geographic and sectoral diversity to the initiative, introducing influential voices from Asia’s commodity and energy markets into global ESG discourse.

The SHFE and INE’s decision to participate in the UN SSE also reflects a broader transformation underway in China’s financial sector. The country has been steadily moving toward more sustainable financial mechanisms, with increasing policy support for green bonds, ESG ratings, and sustainable investment products. SHFE and INE are poised to play a pivotal role in this transformation by incorporating sustainability into the very core of commodity derivatives trading — an area with immense influence over global supply chains, emissions, and energy flows.

In a statement following the announcement, SHFE underscored the importance of international collaboration and learning. “This is a significant step forward for SHFE and INE,” the exchange stated. “We look forward to sharing our insights on the role of derivatives markets in supporting sustainable development, and learning from the global community to strengthen our ESG capabilities.” This outlook suggests that China’s exchanges are not only adopting global standards but are also keen to contribute their unique perspectives to shape the future of sustainable finance worldwide.

The UN SSE welcomed SHFE and INE’s participation, noting the importance of including major exchanges from all sectors and regions to enhance the global reach of ESG efforts. The presence of commodity and energy-focused exchanges adds a critical dimension to the initiative, especially at a time when global efforts to mitigate climate change and promote responsible investing require deep structural shifts in high-impact sectors.

This development also comes at a time when financial institutions worldwide are grappling with the challenge of integrating ESG frameworks into sectors previously untouched by sustainability mandates. Commodity futures and energy derivatives have long been seen as instruments of economic strategy and industrial planning. By bringing these tools into the fold of sustainable finance, SHFE and INE are helping bridge the gap between traditional finance and new-age ESG requirements.

The move also reinforces China’s ambitions to be a global leader in green finance. With its central bank and financial regulators advocating for ESG transparency and sustainable practices, the country is crafting a regulatory environment conducive to responsible investment. SHFE and INE’s alignment with the UN SSE complements other national efforts to promote ESG disclosures, develop green indices, and establish robust sustainability reporting frameworks.

Looking ahead, the participation of SHFE and INE in the UN SSE is expected to have a ripple effect on other exchanges and financial institutions in the region. It may encourage more stakeholders within Asia to embrace ESG principles, thus deepening the integration of sustainability into global capital markets. Moreover, the expertise that SHFE and INE bring in managing complex trading systems and risk management frameworks could help refine global approaches to sustainable finance, especially in volatile markets like energy and commodities.

In joining the UN SSE, SHFE and INE have not only embraced a global standard — they have taken a proactive stance in reshaping the future of finance in China and beyond. Their commitment serves as both a national milestone and an international call to action: that sustainability and finance are no longer separate pursuits, but two sides of the same coin in building a resilient and responsible global economy.