The London Stock Exchange (LSE) has announced the establishment of the Sustainable Bond Market Advisory Group (SBMAG), a consultative body that will advise on developments in sustainable finance, providing input for the LSE’s Sustainable Bond Market and on future developments.
The LSE has been active in its efforts supporting the emergence of sustainable finance. In 2015 the exchange launched a green bond segment, followed by the introduction of the Sustainable Bond Market in 2019, along with the Green Economy Mark, which recognizes companies with at least 50% of revenues derived from environmental solutions.
In a statement introducing the SBMAG, the LSE stated that the new initiative is part of the exchange’s continued commitment to supporting companies and investors seeking to raise capital and manage risk associated with the transition to a low carbon economy.
Membership in SBMAG is built around providing a balanced representation of key market stakeholders such as industry bodies, external reviewers, law firms, underwriters, investors and bond issuers which have shown an active participation in sustainable finance.
Current members include Allianz GI, AXA Investment Managers, Bank of China, Barclays, BlackRock, BNP Paribas, Climate Bonds Initative, CICERO Shades of Green, Enel, European Bank for Reconstruction and Development, HM Treasury, Norton Rose Fulbright, PineBridge Investments, Royal Bank of Canada, Slaughter & May, Sustainalytics, Tideway, and White & Case.
The LSE stated that membership in the SBMAG will be reviewed every two years to ensure the inclusion of an appropriately broad spectrum of market participants.