Green funds

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

The Luxembourg Green Exchange – A unique platform for green 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. Investors use the LGX platform on a daily basis to access information. Improved visibility also brings the opportunity of diversifying the investor base.

All green funds displayed on LGX

 

What makes a fund green?

A green fund invests its assets in sectors and activities that benefit the environment, incorporating specific investment selection strategies into its investment decisions and processes.

  • Examples of green investment themes:

    • Renewable energy: fund invests in renewable energy, including production, transmission, appliances, and products.
    • Environmental and ecological: fund invests in diverse environmental/green sectors, such as energy efficiency, climate change adaptation, pollution prevention and control, sustainable food and agriculture, sustainable fishery, biodiversity conservation, clean transportation, circular economy adapted products and processes, and green buildings.
    • Carbon: fund invests in carbon credits used to offset emissions by financing carbon reduction projects.
    • Forestry: fund invests in environmentally-sustainable forestry, including afforestation and reforestation, plantation forestry and sustainable forest management with internationally recognised certificates, and preservation or restauration of natural landscapes.
    • Water: investments in water-related sectors, such as water supply and treatment, water technology, sustainable water and wastewater management, environmental services, mineral water, and aquatic biodiversity conservation.
     

    In addition to focusing on specific environmental criteria, the investment selection may also consider the following investment strategies:

    • Norms-based screening – approach based upon screening in accordance with recognised frameworks, such 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
    • Investing for impact – approach where specific impact objectives are targeted, measured and reported

Green fund labels recognised by LGX

Funds labelled by a labelling agency benefit from additional credibility, transparency and superior quality standards. Green funds having been awarded one of the below labels can display on LGX.

Asset managers with green funds on LGX

A success story from one of our issuers

"We designed our fund as a de-carbonation tool, disclosing an environmental performance of 1700 tons of CO2 per million euros invested. Its display on LGX is meant to convince every issuer and investor that green bonds have global reach, as criteria are measured objectively worldwide. We trust that together we can make a difference."

Grégory Schneider-Maunoury

Responsable ISR, Humanis Gestion d’Actifs

The Luxembourg Green Exchange in a nutshell

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

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

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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Flavia Micilotta

Director of Luxembourg Green Exchange

+352 47 79 36 403 mfl@bourse.lu