Today (April 3, 2025), the Mongolian Stock Exchange (MSE), in collaboration with the Mongolian Sustainable Finance Association (MSFA) and the International Finance Corporation (IFC), organized a training and informational event on "Environmental, Social, Governance (ESG), and Sustainability Reporting" for companies listed on the Mongolian Stock Exchange.

The event was opened by Javkhlan. I, Chief Operating Officer of Mongolian Stock Exchange, who stated:

"In 2022, the Mongolian Stock Exchange, in partnership with the Financial Regulatory Commission, the Mongolian Sustainable Finance Association (MSFA), and the International Finance Corporation, approved guidelines for ESG or Sustainability Reporting. Based on these guidelines, the Exchange developed a procedure for listed companies to disclose information to the public and created a draft for the ESG reporting template. From 2022 to 2024, all listed companies voluntarily submitted their reports, which were made available to the public via the Exchange’s website.

In October 2024, the regulations were amended, and companies listed in the first category of the MSE are now required to submit their ESG reports, not on a voluntary basis but as a mandatory requirement. As a result, today's event aims to provide information on the methodology, best practices, and experience related to ESG reporting and how companies can prepare these reports.

In recent years, sustainability and responsible business principles have become critical factors in investment decisions, as clearly indicated by international studies.

In our practice, professional investors who approach the Mongolian Stock Exchange often ask, "How many companies publish sustainability reports?" and express a desire to review the ESG reports of these companies.

The training session covered the following:

• Mr. B. Batmunkh, an expert from the World Bank Group (IFC), discussed "Environmental, Social, Governance (ESG) - Sustainability Reporting."

• Mrs. D. Enkhlin, the General Manager of MSFA, covered ESG reporting trends, ESG-Sustainability Reporting guidelines, and the key information included in ESG reports.

• An international sustainability standards advisory (ISSB) shared requirements related to sustainability reporting.

• A guest speaker (TBC) shared best practices and experiences in preparing and making ESG and Sustainability reports transparent to the public and investors.

In 2024, 27 companies submitted ESG reports, and as of April 3, 2025, 14 out of 26 companies listed in the first category of the Mongolian Stock Exchange have submitted their reports.

According to the MSE's "Public Disclosure of Information by Issuers" regulation 3.7: "Issuers listed in the first category of the stock exchange must submit their ESG reports based on actions and activities undertaken during the reporting period. These reports must be submitted by April 30 of the following year. Issuers listed in the second and third categories can voluntarily submit their ESG reports by the specified deadline."

A total of over 50 representatives from 30 companies participated in today's training.

MONGOLIAN STOCK EXCHANGE