Luxembourg Green Exchange (LGX)€¦ · How do stock exchanges come in? 2018 - 5 Strong integrated...
15
Luxembourg Green Exchange (LGX)
Transcript of Luxembourg Green Exchange (LGX)€¦ · How do stock exchanges come in? 2018 - 5 Strong integrated...
Luxembourg
Green Exchange
(LGX)
2018 - 1
Sustainable (r)evolution
Sustainability is not a passing fad!
2018 - 2
* World Economic Forum – The Global Risks Report 2018
ESG risks are real and they are here to stay
2018 - 3Source: UNCTAD, 2014
How much needs to be invested?
Between USD 1.5 and 10 trillion of additional investments per year until 2030
2018 - 4
Bring SCALE to the market
Enhanced product visibility (lists)
Increased investor base
Additional liquidity (trading)
Indices
Promote TRANSPARENCY & COMPARABILITY
Guidelines/rules
Integrity and trust
Lower green/social washing risk
Foster INTERNATIONAL COOPERATION
Disseminate best practices
Create convergence around common metrics/practices
How do stock exchanges come in?
2018 - 5
Strong integrated approach
Involvement in COP
Industry groups and bodies
EU Regulator
NGOs
2018 - 6
Sustainable (r)evolution
LGX, Luxembourg’s success story
2018 - 7
Creation of the world’s first and only green exchange in September 2016
Filling a market gap
2018 - 8
Bridging the needs of issuers and investors (1/2)
IssuersLGXInvestors
Projects
2018 - 9
For issuers
Optimal visibility for their additional disclosure efforts
Enhanced sustainability profile (e.g. shareholders, consumers)
Free upload of green, social and sustainable securities documentation
Transparency around their sustainability strategy
For investors
Easy access to green, social and sustainable labelled securities
Free and unrestricted access to sustainability-related information
Improved comparability of green, social and sustainable securities
Transparency around the invested universe
Bridging the needs of issuers and investors (2/2)
2018 - 10
Global reach
Geographical distribution of LGX issuers
160% growth since 2016
USD 110+ billion issued in total
230+ securities denominated in 19 currencies
50% market share of green bonds listed worldwide
LGX
2018 - 11
Green bond issuers*:
*International and Chinese domestic green bonds
Issuers displayed on LGX
Social and sustainability bond issuers:
2018 - 12
Sustainable (r)evolution
Looking ahead with optimism
2018 - 13
Some questions remain unanswered
Regulation
Incentives
Costs
TaxonomyData
KPIsMetrics
November 2016 - 14
ObrigadaCHIARA CAPRIOLIBusiness Development Manager
Contacts
PAULA REDONDO PEREIRASenior Regulatory Counsel
