ESG funds

Give your ESG funds exposure to a wide range of investors by joining the Luxembourg Green Exchange (LGX).

The Luxembourg Green Exchange – A unique platform for ESG funds

LGX is a reference platform offering quality and transparency, with access to a large source of information across different sustainable financial instruments. Being displayed on one of the world’s leading reference platforms brings increased transparency and visibility for investors and issuers alike. It is easier to find reliable, relevant information in one central place. This improves comparability of products.  The investors use the LGX platform on a daily basis to access information. Improved visibility also brings the opportunity of diversifying the investor base.

All ESG funds displayed on LGX

 

What makes a fund an ESG fund ? 

An ESG fund incorporates environmental, social and governance (ESG) factors into its investment decisions and processes, following specific investment selection strategies.​

  • An ESG investment selection strategy may combine a number of the following strategies:

    • Norms-based screening – approach based upon screening in accordance with recognised frameworks, such as the UN Global Compact or Human Rights
    • Multiple exclusions strategy – approach that excludes multiple investments or classes of investments from the investible universe
    • Best-in-class – approach where leading or best performing investments within a universe, category or class are selected or weighted based on ESG criteria
    • ESG integration – approach which analyses the ESG performance of companies and considers this in the investment process
    • Engagement – active ownership through engagement with companies on ESG matters
    • Voting – active ownership through voting on ESG matters
    • ESG ethical screening – approach based on a strategy dedicated to screening in accordance with specific frameworks or values such as ESG shariah or faith-based screening
    • Impact investing – approach where specific impact objectives are targeted, measured and reported

ESG fund labels recognised by LGX

Funds labelled by a labelling agency benefit from increased credibility, transparency and superior quality standards. ESG funds having one of the below labels may display on LGX.

Asset managers with ESG funds on LGX

A success story from one of our asset managers

"We are proud to be amongst the first asset managers to have ESG equity and bond funds listed on LGX, the world’s leading platform for sustainable finance. We are grateful to LGX for recognising the essential role that funds emphasising ESG integration and active ownership also play in the drive towards a sustainable financial future for all."

Nichola Marshall

Head of Responsible Investment, Sparinvest

The Luxembourg Green Exchange in a nutshell

The market for sustainable finance investments has experienced rapid growth in recent years as attention turns to working towards the Sustainable Development Goals and meeting the targets under the Paris Climate Agreement.

To help facilitate the development of this market, in 2016 we launched the Luxembourg Green Exchange (LGX), a dedicated platform for sustainable securities.

LGX aims to bring investors and issuers of sustainable financial instruments together on a single platform. To find out if your securities are eligible to join LGX, visit our How to join section. 

If you need more information

Contact us

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Jane Wilkinson

Head of Sustainable Finance

+352 47 79 36 319 wij@bourse.lu
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Benoit Pauly

Sustainable Finance Officer

+352 47 79 36 402 bpa@bourse.lu