The Luxembourg Stock Exchange today announced the launch of a new EU Taxonomy Issuers Window on the Luxembourg Green Exchange Platform. This new window is the next step in the exchange taking a more holistic approach to sustainable finance, highlighting LuxSE issuers of both conventional and sustainable bonds with Significant Turnover Alignment or Significant CapEx Alignment with the EU Taxonomy.
The Luxembourg Stock Exchange (LuxSE) unveiled today a new window on its UN-awarded platform for sustainable finance, the Luxembourg Green Exchange (LGX) – taking a step beyond its traditional security-level focus and shining the spotlight on issuers demonstrating alignment with the EU Taxonomy.
The EU Taxonomy Issuers Window showcases LuxSE issuers with either Significant Turnover Alignment or Significant CapEx Alignment with the EU Taxonomy. This marks a new step for the exchange and the LGX Platform as this new window places the focus on an issuer’s overall business model and its contribution to the green activities set out in the EU Taxonomy. With this latest move, LuxSE strengthens its commitment to fostering awareness of the broader universe of investment options contributing to positive environmental outcomes, providing visibility to companies that are aligned with – or investing in – the EU’s ambitious green agenda, even if they do not issue green bonds.
Bringing issuer-level transparency to sustainable finance
Introduced in 2020 and applicable from 2022, the EU Taxonomy is the European Union (EU)’s classification system for environmentally sustainable economic activities. It establishes clear criteria to help companies, investors and policymakers identify activities that make a substantial contribution to the EU’s climate and environmental objectives.
Building on the EU Taxonomy and alignment data reported by issuers, LuxSE has defined two categories of companies within this window. These categories highlight the extent to which each engage in environmentally sustainable activities. The first category
highlights companies with significant turnover alignment – generating more than 75% of their revenue from EU Taxonomy-aligned activities. The second category, on the other hand, features companies with significant CapEx alignment, meaning those that invest at least 75% in EU Taxonomy-aligned projects or assets, or with CapEx alignment at least 25 percentage points above turnover alignment.
“As a leader in the realm of sustainable finance in Europe and worldwide, LuxSE believes it has an important role to play in accelerating the practical application of the EU Taxonomy. With the launch of our EU Taxonomy Issuers Window, we are reaffirming our move from a security-level to an issuer-level focus, helping investors identify companies demonstrating strong Taxonomy alignment and enabling issuers to showcase their efforts in aligning with the EU Taxonomy,” commented Laetitia Hamon, Head of Operations & Sustainable Finance at LuxSE.
Connecting Investors and Issuers
Upon launch, the EU Taxonomy Issuers Window – which is the first window exclusively dedicated to issuers with significant EU Taxonomy alignment launched by a European exchange – is publicly accessible via LuxSE’s website and provides information on issuers with securities listed or admitted on one of LuxSE’s internationally respected markets or platforms, and demonstrating Significant Turnover Alignment or Significant CapEx Alignment with the EU Taxonomy.
In addition to displaying information on the entity’s overall issuer profile, all bonds listed by these issuers on LuxSE will be included in this window and form part of the LGX Platform.
“Our EU Taxonomy Issuers Window enhances transparency by connecting investors with issuers demonstrating tangible engagement in environmental sustainability. This initiative makes it easier to distinguish companies leading the transition, ensures their efforts are recognised within the broader sustainable finance market, and helps broaden the scope of investment opportunities for investors,” said Lucas Rabiot, Head of LGX Operations at LuxSE. To find out more about the EU Taxonomy Issuers Window, please visit our website or explore the window.
