The pioneering Transition Finance Gateway provides climate transition data on non-financial corporate issuers with debt securities listed on the exchange. It strives to promote clarity, comparability, harmonisation and transparency by consolidating transition data from four internationally recognised data providers all in one, free-to-use space.
Today, the Luxembourg Stock Exchange (LuxSE) announced the launch of a brand-new initiative which aims to support issuers in their transition journey and provide transparency to investors. The Transition Finance Gateway shines the spotlight on the exchange’s some 500+ non-financial corporate debt issuers across both conventional and sustainable bonds. Leveraging the powerful transition data of four data providers - CDP, the Net Zero Tracker, the Science-Based Targets Initiative (SBTi) and the Transition Pathway Initiative (TPI) Centre. This marks a new step for LuxSE as it shifts its attention from security-focused to entity-level analysis.
“With the introduction of our Transition Finance Gateway, the Luxembourg Stock Exchange reaffirms its commitment to pioneering solutions that facilitate the transition to a low-carbon economy. This innovative platform is designed to provide a comprehensive view of climate transition efforts, enhancing the transparency and comparability that are crucial for informed decision-making. By consolidating transition data from leading providers, we are not just facilitating market engagement but also driving meaningful change. This initiative underscores our dedication to supporting the financial community in navigating the complexities of climate transition and fostering a more resilient future,” commented Julie Becker, Chief Executive Officer of LuxSE.
Empowering the market with transition tools
In 2024, global temperatures exceeded the significant 1.5-degree mark above pre-industrial levels according to the International Energy Agency (IEA). This means that the transition towards a low-carbon economy is more crucial than ever and more needs to be done to help entities – especially those operating in emerging markets or hard-to-abate sectors – communicate on their transition finance journey.
“In a time when others are stepping away from this area of the market, we – together with the four data providers – are stepping up to promote clarity, comparability, and harmonisation on the climate transition. We need to make sure that issuers and investors alike have the opportunity to play their role in this important mission and our Transition Finance Gateway yet again highlights our commitment to facilitating and mobilising the market,” commented Laetitia Hamon, Head of Operations and Sustainable Finance at LuxSE.
Collaborating with climate transition data experts
The Transition Finance Gateway is the result of countless months of work and collaboration between LuxSE and four renowned data providers - CDP, the Net Zero Tracker, the SBTi and the TPI Centre.
“Our collaboration with the Luxembourg Stock Exchange exemplifies our commitment to making high-quality environmental data accessible and actionable. By disclosing once through CDP, organisations can power multiple uses such as the Transition Finance Gateway, while investors gain consistent, comparable data to inform decisions and accelerate the shift to an Earth-positive, low-carbon economy. This Gateway is a vital tool to connect both sides of the market with the insights needed to drive meaningful, sustainable change,” commented Torun Reinhammar, Head of Capital Markets, Europe at CDP.
“At the Net Zero Tracker, we believe transparency is the cornerstone of credible climate commitments that precede effective action. The Transition Finance Gateway is a significant step forward in closing the accountability gap between issuers and investors by shedding light on corporate net zero targets and transition planning. By making our data accessible in this way, LuxSE is helping drive the market towards real-economy emissions reductions, especially in sectors and regions where clarity is most needed,” commented John Lang, Project Lead at the Net Zero Tracker.
“The launch of LuxSE’s Transition Finance Gateway is a major step forward in increasing transparency and accountability in climate finance. It helps global stakeholders understand the level of climate ambition in the financial sector and track progress toward meaningful action. This insight can guide smarter investments and support a more resilient, net-zero future,” commented Tracy Wyman, Chief Impact Officer at the SBTi.
“TPI Centre’s mission is to provide independent, rigorous, forward-looking research and data to enable investors to support the transition to a low-carbon economy. We welcome LuxSE’s initiative, as it targets primarily fixed income investors and bond issuers, who play a crucial role in transition finance and do not feature prominently enough in the transition debate. The Gateway, which we are delighted to support, will contribute to spotlight disclosure in debt capital markets and promote informed investment-corporate engagement,” commented Carmen Nuzzo, Professor in Practice and Executive Director of the TPI Centre at the London School of Economics and Political Science, TPI’s academic partner.
Unlocking new opportunities for the market
Free-to-use and accessible directly on the website of LuxSE, the Transition Finance Gateway provides users with a number of important benefits.
For issuers displayed on the Gateway, it is a way of supporting and promoting their climate transition journey. The Gateway enables them to use their dedicated Transition Finance Gateway issuer page to showcase their efforts to stakeholders as well as complementary information that further highlights the concrete actions that they are taking to transition. It also allows them to see how their peers are establishing credible climate transition pathways and so, can help to facilitate their own journey.
For investors, the Transition Finance Gateway brings the transparency and clarity needed to support the climate transition. The Gateway also includes climate transition data on issuers operating in emerging markets and hard-to-abate sectors that play a crucial role in the climate transition.
Just the beginning
With more features and tools currently under development in LuxSE’s broader transition finance mission, the Transition Finance Gateway is the exchange’s inaugural and concrete way of supporting its non-financial corporate debt issuers and the climate transition. Additional features in the Gateway along with entirely new products around this theme are currently being developed.
For more information, please visit the Transition Finance Gateway webpage or get direct access to the Gateway by clicking here.
