Luxembourg Green Exchange
The Luxembourg Green Exchange (LGX) was established by the Luxembourg Stock Exchange (LuxSE) and is the world’s first sustainable finance platform.
The Luxembourg Green Exchange aims to contribute to the goals of the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement, and brings together asset management companies, investors, and other stakeholders from various countries to make positive impacts.
Related Post: PwC Releases Report on Luxembourg-domiciled ESG Funds
Composition of Luxembourg Green Exchange
The Luxembourg Green Exchange consists of four parts, namely the sustainable securities and fund platform LGX Platform, the sustainable education institution LGX Academy, the sustainable data platform LGX DataHub and the sustainable financial services institution LGX Assistance Services. Their main functions are as follows:
- LGX Platform: Provides a listing platform for green and sustainable bonds and sustainable funds, with a total scale of more than 970 billion euros.
- LGX Academy: Provides training on sustainable finance-related products, standards, and regulations for financial practitioners, market participants, students to cultivates talents.
- LGX DataHub: Provides global sustainable bond data, including more than 12,000 Green, Social, Sustainability and Sustainability-linked Bonds (GSSS Bonds) from 2,800 issuers.
- LGX Assistance Services: Provides training and assistance on the sustainable bond issuance and helps to establish a sustainable financial framework that meets market standards.
Financial Products in Luxembourg Green Exchange
The Luxembourg Green Exchange initially only had green bonds, but has now expanded to more financial products, including GSSS bonds, sustainable funds, etc. In terms of GSSS bonds, LGX refers to the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines of the International Capital Market Association (ICMA), requiring bonds listed on LGX to comply with these labels and pass external review. Issuers are also required to disclose the environmental and social impacts of bonds at least annually until the bonds mature.
In terms of sustainable funds, the Luxembourg Green Exchange is the only platform to show Article 8 funds and Article 9 funds in accordance with the European Sustainable Finance Disclosure Regulation. Funds can choose to be listed on the Luxembourg Stock Exchange and can be displayed on LGX after meeting the SFDR standards.
Reference:
