30 March 2020
The Luxembourg Stock Exchange (LuxSE) has won Environmental Finance's exchange of the year award for the fourth year in a row.
In 2008 the World Bank offered the first ever bond with a green label, listed on the Luxembourg Stock Exchange. Since then LuxSE has continued to support the market and established the Luxembourg Green Exchange (LGX) in 2016, which helps promote best practice in the market by demanding impact reporting.
By the end of 2019, LuxSE listed 585 green, social and sustainability bonds, totalling €215.5 billion ($240 billion), from 116 issuers from throughout the world. A total of 268 new green, social and sustainability bonds were listed on LGX in 2019, as well as 25 ESG, green and social funds.
Awards judges' comments on the victory included: "Most of the bonds looked at [for awards] were listed on the Luxembourg Stock Exchange, which is also supportive of broader sustainable finance initiatives."
October 2019 saw the publication of the LuxSE Guide to ESG Reporting. The broad scope of these guidelines—covering not only companies, but also issuers of sustainable debt instruments and asset managers, made the document unique and relevant to market participants.
In December 2019, LuxSE became a licensed training provider, and held classes at the University of Luxembourg. It also teamed up with the International Finance Corporation, the Shenzen Stock Exchange and the International Capital Market Association to educate bankers in emerging markets on green bond issuance.
Internationally, the LuxSE established memorandums of understanding with the Nigerian Stock Exchange and the Santiago Exchange, and supports the Inter-American Development Bank's Green Bond Transparency Platform, a core initiative for the Latin American markets.
In 2019, LuxSE also extended its Green Bond Channel for Chinese domestic green bonds to include bonds listed on the Shenzhen Stock Exchange.