Increasing the scope
LGX started as a platform dedicated to green bonds, but only a year later, the scope was increased to include social and sustainability bonds. In 2018, LGX opened a section for SRI funds and two years later, it added sustainability-linked bonds. The platform has kept evolving to support new market developments, and earlier this year, a new section dedicated to climate-aligned issuers was added in partnership with Climate Bonds Initiative, thereby highlighting other investment opportunities in the broader sustainable investment universe.
In 2020, LuxSE went beyond its core activities as a listing venue and entered the realm of education and sustainability data. Through the LGX Academy, LuxSE’s experts offer courses on sustainable finance to financial professionals and students in and beyond Luxembourg. The exchange has also built the LGX DataHub, a centralised database of structured sustainability data on more than 3,200 sustainable bonds — close to the entire universe of listed green, social and sustainability bonds worldwide — which helps investors and asset managers build sustainable investment portfolios and report on these investments. In collaboration with German index provider Solactive AG, LuxSE also established the Solactive LGX Green Bond Impact Index late last year.
The development of LGX reflects the strong growth in sustainable finance more broadly over the past five years. With its innovative platform, LuxSE has been widely recognised for its contribution to facilitating sustainable investment and reorienting capital flows towards investment projects with positive environmental and social outcomes.
As an example, LuxSE won the UN Global Climate Action Award 2020 for its role in accelerating financing for climate-friendly investments, and has been recognised as the Exchange of the Year at the Environmental Finance Bond Awards for the past five years.
Celebrating the growth of sustainable finance