Sustainability Standards and Principles
Protecting the integrity of the sustainable finance market
We go to great lengths to ensure the highest level of transparency and integrity of the securities displayed on LGX. This is why all sustainable instruments displayed on LGX must be aligned with a recognised international sustainability standard, framework, taxonomy or methodology and as well as comply with LGX’s strict eligibility criteria.
Sustainability standards, guidelines and catalogues for bonds
There are several, internationally recognised sustainability standards guiding sustainable bond issuance today. Even if these standards are voluntary, they help ensure the integrity of both the sustainable finance market and of the security itself. The standard applied to each new bond issuance varies depending on the type of instrument, the market in which the security is being issued, and other factors. To display a sustainable bond on LGX, securities must be aligned with one of the following sustainability standards, guidelines or catalogues and respect other eligibility criteria specific to LGX:
ICMA’s Green Bond Principles (GBP)
Climate Bonds Initiative
ICMA’s Social Bond Principles (SBP)
People’s Bank of China Green Bond Endorsed Projects Catalogue (2021)
ICMA’s Sustainability Bond Guidelines (SBG)
ASEAN Green Bond Standards
ICMA’s Sustainability-Linked Bond Principles (SLBP)
LMA Green Loan Principles
A Practitioner’s Guide to Using Sustainable Debt for Gender Equality
LMA Sustainability Linked Loan Principles
Regulation of the European Parliament and of the Council on the European Green Bonds
EU Taxonomy Report
Regulations and labels for sustainable investment funds
LGX is home to a wealth of different sustainable securities including sustainable funds. In order to be eligible for display on LGX, funds must comply with the Sustainable Finance Disclosure Regulation (SFDR) and be categorised as an Article 8 or Article 9 fund under SFDR by the responsible asset manager.
Sustainable Finance Disclosure Regulation (SFDR)
Reporting standards and methodologies for companies
As the world moves towards low-carbon and inclusive societies, the importance of taking a more holistic approach to sustainable finance is a growing priority, which includes the need to take an issuer’s overall ESG profile into account.
Climate-Aligned Bonds & Issuers Research Methodology 2020
If you need more information
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