On March 18th, the Luxembourg Stock Exchange was awarded Best Green & Sustainable Initiative. We sat with Julie Becker, Deputy CEO of the Luxembourg Stock Exchange (LuxSE) and Founder of the Luxembourg Green Exchange (LGX) to understand how the story has begun and what has been the main achievements of the LGX platform so far.
How did the sustainable finance strategy begin at LuxSE? Why?
We established the Luxembourg Green Exchange, or LGX, in 2016 as a contribution to the United Nations Sustainable Development Goals and the Paris Agreement. With LGX, we facilitate sustainable investment and help reorient capital flows towards projects with positive environmental or social outcomes. If we are to reach the global goals and curb climate change, we need to mobilise massive amounts of public and private capital, and LGX brings together issuers and investors that want to contribute to the green transition, sustainable development, and bring about positive change.
What are the main elements and initiatives that compose LGX?
LGX is a platform for sustainable finance that comprises a section dedicated to sustainable securities and a separate section featuring sustainable issuers. We started by displaying labelled bonds such as green, social, sustainability and sustainability-linked bonds, and we also have a section dedicated to SRI funds. Earlier this year, we established the Climate Bonds-LGX Climate Aligned Issuers section, which features companies that derive at least 75% of their revenues from environmentally friendly activities. In addition to the platform, last year, we moved beyond our core exchange activities and established the LGX Academy, offering sustainable finance courses, and the LGX DataHub, a centralised database of structured sustainability data on more than 3,000 sustainable bonds.
What are LGX’s main achievements? Can you share some of your milestones with our readers?
LGX has seen exponential growth since its launch in 2016, and currently counts more than 900 sustainable bonds. It is by far the world’s leading platform for sustainable securities and a reference venue for leading issuers such as the EIB and the World Bank. We have continued to develop and expand LGX every year to respond to market needs, strengthen the sustainable finance agenda and contribute to creating more sustainable capital markets. The LGX Academy and the LGX DataHub are good examples of this. In addition, in 2020, we won the UN Global Climate Action Award for our contribution, a major achievement!
What are LuxSE’s upcoming projects for the months to come?
We are currently following closely the developments around transition finance and analysing how to best support related financial products. We will also further develop the LGX Academy and expand the LGX DataHub. Data is a focus area for us, and we see great potential in this field.
Publié le 01 avril 2021