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Sustainable securities on the LGX Platform
Join the world’s leading platform for sustainable securities
Since launching in 2016 as a window on the Luxembourg Stock Exchange (LuxSE) exclusively dedicated to green bonds, the LGX Platform has grown into a leading hub for a wide range of sustainable securities.
LGX sustainable securities at a glance
Today, we welcome green, social, sustainability (GSS) bonds, sustainability-linked bonds (SLBs), gender-focused bonds, funds classified under Sustainable Finance Disclosure Regulation (SFDR) Article 8 or 9 as well as instruments issued by companies significantly aligned with the EU Taxonomy. Our goal is to support the transition to a more sustainable future by helping issuers to connect with global investors through transparent and high-impact finance.
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green bonds
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social bonds
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sustainability bonds
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sustainability-linked bonds
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gender-focused bonds
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Article 8 funds
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Article 9 funds
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instruments from EU Taxonomy issuers with Significant Turnover Alignment
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instruments from EU Taxonomy issuers with Significant CapEx Alignment
GSS bonds
Sustainability-linked bonds
LGX funds
EU Taxonomy issuers
1
Choose a market
Before a green, social or sustainability (GSS) bond can be considered for display on the LGX Platform, you must first list the bond on our EU-regulated market (Bourse de Luxembourg) or our exchange-regulated market (Euro MTF) or register the bond without admission to trading via our Securities Official List (LuxSE SOL).
2
Classify your bond
Your bond must also be self-labelled as green, social or sustainability and this must be specified in the legal documentation. The bond’s use of proceeds should be allocated to green, social or sustainability projects as stated in the framework. Our eligibility criteria are in line with internationally recognised sustainable bond standards and principles such as the International Capital Market Association (ICMA)’s Green Bond Principles (ICMA GBP), Social Bond Principles (ICMA SBP) and Sustainability Bond Guidelines (ICMA SBG).
3
Provide a pre-issuance external review
At the pre-issuance stage, we require you, as an issuer, to provide an external review (i.e., Second Party Opinion) of your framework or on your issuance. The external review must confirm alignment with recognised standards and principles.
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Commitment to post-issuance reporting
Issuers with GSS Bonds displayed on the LGX Platform are required to produce a post-issuance allocation report and a new report is expected once per year until the maturity of the bond or at least until the full allocation of proceeds. In addition, we encourage you to disclose on the environmental or social impact of your bond.
Bonds fulfilling the above criteria are automatically eligible to be displayed on the LGX Platform once properly evaluated by the LGX Team.
Bonds fulfilling the above criteria are automatically eligible to be displayed on the LGX Platform once properly evaluated by the LGX Team.
1
Choose a market
Before a SLB can be considered for display on the LGX Platform, you must first list the bond on our EU-regulated market (Bourse de Luxembourg) or our exchange-regulated market (Euro MTF) or register the bond without admission to trading via our Securities Official List (LuxSE SOL).
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Inclusion of sustainability-related targets
Your SLB’s legal documentation must also clearly describe the ways in which your bond’s structural and/or financial characteristics are linked to the achievement of the Key Performance Indicators (KPI(s)) and Sustainability Performance Target (SPT(s)).
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Provide a pre-issuance external review
At the pre-issuance stage, we require that you provide an external review (i.e., Second Party Opinion) on your framework or on your issuance. This external review must confirm alignment with ICMA’s Sustainability-Linked Bond Principles (ICMA SLBP) as our eligibility criteria is in line with these principles.
4
Commitment to post-issuance reporting and verification
We also require a commitment from you, as the issuer, to produce a post-issuance report and we expect a new report once per year, or at least once prior to the trigger event.
SLB issuers with bonds displayed on the LGX Platform must also commit to obtaining a post-issuance verification, ideally on a yearly basis, or at least once prior to the trigger event, in line with ICMA’s SLBP recommendations.
Finally, you must also provide appropriate post-issuance disclosure in case of any material change to the KPIs’ perimeter, methodology, or to the SPT calibration.
SLB issuers with bonds displayed on the LGX Platform must also commit to obtaining a post-issuance verification, ideally on a yearly basis, or at least once prior to the trigger event, in line with ICMA’s SLBP recommendations.
Finally, you must also provide appropriate post-issuance disclosure in case of any material change to the KPIs’ perimeter, methodology, or to the SPT calibration.
1
Choose a market
To display your fund on the LGX Platform, the fund must first be listed on one of LuxSE’s internationally respected markets – the EU-regulated Bourse de Luxembourg (BdL) market or the exchange-regulated Euro MTF. As a third option, the fund can be registered on the Securities Official List (LuxSE SOL).
2
Categorise your investment funds
Categorisation is based on the Sustainable Finance Disclosure Regulation (SFDR) and is made by the asset manager responsible for the fund:
- An Article 8 fund under SFDR is a fund that promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
- An Article 9 fund under SFDR is a fund that has sustainable investment as its objective.
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Fulfil LGX eligibility criteria
Funds classified as Article 8 or 9 under the SFDR are automatically eligible to be displayed on the LGX Platform once properly evaluated by the LGX Team.
4
Provide transparency and disclosure
Funds displayed on the LGX Platform are expected to fully comply with the product-level reporting required by SFDR or equivalent to ensure continued transparency and commitment to sustainability. We reserve the right to withdraw a security from our platform if it does not abide by SFDR requirements.
1
Choose a market
To appear on the EU Taxonomy Issuers Window on the LGX Platform, you must first have an instrument listed on one of LuxSE’s internationally respected markets – either our EU-regulated (Bourse de Luxembourg) market or the exchange-regulated market (Euro MTF). Alternatively, the instrument can be registered without admission to trading on the Securities Official List (LuxSE SOL).
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Report annually on your EU Taxonomy alignment
To be considered as an EU Taxonomy issuer on the LGX Platform, every year, you are required disclose the proportion of your turnover and capital expenditures aligned with the EU Taxonomy, to demonstrate your commitment to environmental sustainability. This information can be included in your existing integrated or non-financial reports.
We also encourage you to obtain external verification (i.e., limited or reasonable assurance) to enhance the credibility of your EU Taxonomy reporting.
We also encourage you to obtain external verification (i.e., limited or reasonable assurance) to enhance the credibility of your EU Taxonomy reporting.
3
Meet or exceed the LGX eligibility thresholds
Issuers with significant turnover alignment are those that derive a large majority of their revenues from environmentally sustainable activities. They are defined as issuers meeting the following threshold:
- Turnover alignment or at least 75%
- Turnover alignment between 25% and 75%,
- CapEx alignment of at least 75%, or 25 percentage points above turnover alignment.
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The LGX Team does the rest!
The LGX Team reviews issuers’ reporting on an annual basis. Issuers that meet the defined criteria and thresholds are automatically included in our EU Taxonomy Issuers Window, and all their listed instruments on LuxSE are incorporated into the LGX Platform.
Green bonds
The pioneers of the sustainable finance market, funding projects that have a positive environmental or climate-related impact.
Definition
Social bonds
The ‘S’ in ESG, these bonds exclusively serve to finance social projects such as food security, affordable housing and education.
Definition
Sustainability bonds
Investing in a broader range of projects, these bonds finance projects that contribute to a combination of green and social outcomes.
Definition
Gender-focused bonds
Gender-focused bonds - while not necessarily classified as 100% gender bonds under the Practitioner’s Guide to Using Sustainable Debt for Gender Equality created by UN Women, the International Finance Corporation (IFC) and the International Capital Market Association (ICMA), dated November 2021 – allocate all or a portion of their proceeds to advancing gender equality and women’s empowerment within their documentation and carry post-issuance reporting attesting to the issuer’s concrete actions.
Definition
Sustainability-linked bonds
Sustainability-linked bonds (SLBs) are general purpose bonds that finance the issuer’s strategy towards achieving predefined sustainability performance targets (SPTs) by measuring key performance indicators (KPIs) within a set timeline.
Definition
Gender-focused bonds
Gender-focused bonds - while not necessarily classified as 100% gender bonds under the Practitioner’s Guide to Using Sustainable Debt for Gender Equality created by UN Women, the International Finance Corporation (IFC) and the International Capital Market Association (ICMA), dated November 2021 – allocate all or a portion of their proceeds to advancing gender equality and women’s empowerment within their documentation and carry post-issuance reporting attesting to the issuer’s concrete actions.
Definition
Article 8 funds
Funds featured in this section of the LGX Platform are those classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). An Article 8 fund under SFDR is a fund that promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
Definition
Article 9 funds
Funds that we feature in this section of the LGX Platform are those classified as Article 9 under SFDR. An Article 9 fund under SFDR is a fund that has sustainable investment as its objective.
Definition
EU Taxonomy Issuers Window
In line with the evolving sustainable finance landscape, the LGX Platform now features a dedicated EU Taxonomy Issuers Window to enhance transparency around the environmental performance of issuers with respect to the criteria of the EU Taxonomy. This initiative primarily highlights LuxSE issuers that meet specific EU Taxonomy alignment thresholds.
Definition
Significant Turnover Alignment
Instruments featured in this section are issued by companies that have reported 75% or more of their turnover as derived from activities aligned with the EU Taxonomy.
Definition
Significant Capex Alignment
Instruments featured in this section are issued by companies that have reported that 75% or more of their capital expenditures (CapEx) have been directed to activities aligned with the EU Taxonomy, or by companies whose CapEx alignment clearly exceeds their turnover alignment.
Definition
Frequently Asked Questions
What is the Luxembourg Green Exchange (LGX) Platform?
Is the LGX Platform a separate LuxSE market?
Who can display a sustainable security on the LGX Platform?
How much does it cost to display a security on the LGX Platform?
How long does it take for a sustainable security to appear on the LGX Platform?
What is the EU Taxonomy Issuers Window?
What are the advantages of displaying a fund on the LGX Platform?
Can internationally based funds be displayed on the LGX Platform?
How do I categorise my funds to meet the LGX Platform’s entry criteria??
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