Nexii’s criteria for listing are based on global best practices and will ensure comparable rules apply to all listed entities, thereby facilitating the development of coherent, consistent standards and enabling comparability across investment sectors, regions, investment options, issues and entities. These marketplaces will ultimately grow good practice and enhance consistency in impact performance and measurement. It is only by addressing these primary market failures that impact investing will be able to mature into a healthy, robust and potentially more active, liquid secondary market.
Primacy of social / environmental purpose and intent: An applicant must have a specific and clearly stated positive social or environmental impact as the primary reason for its existence (not an ancillary or secondary effort, such as a Corporate Social Responsibility program);
Clear purpose or “theory of change”: The applicant’s purpose and intent must be articulated in a theory of change which forms the basis for performance assessment of indicators to demonstrate output, outcomes and social performance;
Impact performance measurement and monitoring systems must be in place and the applicant must evidence a commitment to the ongoing monitoring and evaluation of impact performance using clearly defined indicators of impact for performance assessment and reporting; and
A sustainable business model and a market orientation: Whilst an issuer may not need to have reached profitability to be admitted to the exchange or platform, it must demonstrate a market based approach to achieve its purpose and therefore be in a position to deploy and provide returns on financial capital to meet the financial return obligations of its investors. The business model should reflect socially and environmentally responsible practices for all stakeholders.