Welcome to the first edition of LGX Newsletter!
This month marks the 4th anniversary of the Luxembourg Green Exchange (LGX), the world's leading platform for sustainable securities, and what a journey it has been!
The Luxembourg Stock Exchange (LuxSE) launched LGX in 2016 as a contribution to the UN Sustainable Development Goals and the Paris Climate Agreement. Our mission is to help reorient capital flows towards sustainable investment projects and contribute to creating a low-carbon and more inclusive economy.
Over the past four years, we have actively promoted the sustainable finance agenda, both locally and internationally. This year, we have focused our efforts on two essential aspects that we believe have the potential to accelerate sustainable finance investment: Data and Education.
And now, we are delighted to invite you on a monthly tour of LGX and our recent highlights!
Over the past four years, we have actively promoted the sustainable finance agenda, both locally and internationally. This year, we have focused our efforts on two essential aspects that we believe have the potential to accelerate sustainable finance investment: Data and Education.
And now, we are delighted to invite you on a monthly tour of LGX and our recent highlights!
A year in review
Addressing the data challenge
Anyone who has dealt with sustainability data knows how time-consuming it can be to identify and gather all the information needed to build a sustainable investment strategy and report on the impact of these investments.
As a response to this complex challenge, we have built the LGX DataHub, a unique and centralised database of structured sustainability data that asset managers and investors can leverage to make informed investment decisions.
With the LGX DataHub, you can now access, search and explore structured data with a high level of granularity on a wide range of Green, Social and Sustainability Bonds and compare different securities. In short, we collect the data for you so that you can spend your time on more strategic activities!
With the LGX DataHub, you can now access, search and explore structured data with a high level of granularity on a wide range of Green, Social and Sustainability Bonds and compare different securities. In short, we collect the data for you so that you can spend your time on more strategic activities!
Boosting education and knowledge
Over the past four years, we have noticed that many financial professionals and other players would like to contribute to sustainable development, but lack the necessary knowledge to start their sustainable finance journey.
This is what led us to establish the LGX Academy in May this year. Through the LGX Academy, our team of sustainable finance experts provides certified courses for participants of all levels on the foundations of sustainable finance, products & standards as well as applicable regulations and current market practice.
Originally built as in-person courses, the LGX Academy is now also offering virtual classes. We are currently running our very first, fully virtual course cycle, and we encourage you to keep an eye on our website for the next course dates!
This is what led us to establish the LGX Academy in May this year. Through the LGX Academy, our team of sustainable finance experts provides certified courses for participants of all levels on the foundations of sustainable finance, products & standards as well as applicable regulations and current market practice.
Originally built as in-person courses, the LGX Academy is now also offering virtual classes. We are currently running our very first, fully virtual course cycle, and we encourage you to keep an eye on our website for the next course dates!
The “S” of ESG brought to the fore
As the COVID-19 pandemic swept across the world this spring, there was an almost immediate uptick in social bond issuance, the so-called COVID-19 response bonds issued to address the significant social and economic consequences of the pandemic. Social bonds finance projects linked to healthcare, education, social housing and food security, all areas heavily impacted by the current crisis.
From April to June 2020 alone, social or sustainability COVID-19 response bonds totalling USD 20 billion were listed on the Luxembourg Stock Exchange. Among the issuers of these bonds were the European Investment Bank, the World Bank, the Council of Europe Development Bank and the African Development Bank, to mention but a few.
African Development Bank, to mention but a few.
For the first time since 2016, new social and sustainability bonds on LGX year to date has surpassed that of new green bonds in terms of amount issued, clearly reflecting the new focus on Social in these unprecedented times.
For the first time since 2016, new social and sustainability bonds on LGX year to date has surpassed that of new green bonds in terms of amount issued, clearly reflecting the new focus on Social in these unprecedented times.
Important appointments
Apart from launching new initiatives within data and education, we are happy to share that we have strengthened the LGX team with the appointment of Laetitia Hamon as Head of Sustainable Finance at the Luxembourg Stock Exchange in July.
With her solid experience in the Luxembourg fund industry and her in-depth sustainability knowledge, Laetitia is perfectly positioned to drive LGX towards new heights!
Zooming in on new displays
LGX would be nothing without the outstanding engagement of all our sustainable issuers. Let's take a look at some of this month's highlights!
In mid-September, the Grand Duchy of Luxembourg issued Europe's first sovereign sustainability bond. The EUR 1.5 billion bond has a AAA rating and will finance and refinance projects with a positive social or environmental impact in Luxembourg, such as the electric public transportation service Luxtram and the country’s second largest hospital Südspidol.
Daimler has issued the automotive industry’s first-ever green bond! The proceeds of the EUR 1 billion bond will mostly be used to produce zero-emission vehicles, showing the company's ambition to move towards CO₂-neutral technology.
Munich RE made its debut on LGX with a EUR 1.25 billion green bond, rated single-A, whose proceeds will cover 5 SDGs. As the first re-insurer to issue a green bond, Munich RE will hopefully pave the way for many others!
Joining forces for a greener economy
Zooming in on the green transition
This year, LuxSE sponsored Climate Bonds Initiative's popular annual conference, which took place virtually from 8-10 September, gathering thousands of participants from across the world.
As one of the speakers at the event, Julie Becker, Deputy CEO of LuxSE and Founder of LGX, shared insights into transition finance and zoomed in on the new instruments emerging in the sustainable debt market.
As one of the speakers at the event, Julie Becker, Deputy CEO of LuxSE and Founder of LGX, shared insights into transition finance and zoomed in on the new instruments emerging in the sustainable debt market.
Exploring the benefits of the green bond market
What benefits do green bond issuers identify?
Find the answer to this question and much more in Climate Bond Initiative's first Green Bond Treasurer Survey, sponsored by LGX and published this spring.
The survey looked at the market experience of more than 80 treasurers from 34 countries to identify the key drivers and benefits of green bond issuance. Food for thought!
Find the answer to this question and much more in Climate Bond Initiative's first Green Bond Treasurer Survey, sponsored by LGX and published this spring.
The survey looked at the market experience of more than 80 treasurers from 34 countries to identify the key drivers and benefits of green bond issuance. Food for thought!
Let's talk about trading
Did you know that on LuxXprime, LuxSE’s trading window dedicated to retail-sized trading, you can trade Green, Social and Sustainability bonds? A year after launch, LuxXPrime now includes 160 sustainable securities in its exclusive selection, for which EUWAX AG, a subsidiary of Börse Stuttgart, acts as the Prime Liquidity Provider.
Go to www.luxxprime.com to explore the full selection!
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