Luxembourg Green Exchange (LGX) announced today the introduction of a new section on the LGX platform, dedicated to climate-aligned Issuers & their debt securities, developed in partnership with Climate Bonds Initiative.
Based on Climate Bonds Initiative’s issuer screening and research, the new section includes the debt securities of issuers that are active in climate-aligned sectors such as clean energy, low-carbon transport and sustainable land use, but that may not have issued bonds in the labelled format. According to LGX, the platform identifies Climate-Aligned Issuers (CAIs) including public or private companies with outstanding debt whose proceeds can be used to finance their operational activities within these climate-friendly sectors. Issuers are defined as ‘fully-aligned’ if they derive more than 95% of their revenues from climate-aligned activities, and as ‘strongly-aligned’ if more than 75% are derived from these areas.
At launch, according to LGX, the Climate Bonds-LGX Climate-Aligned Issuers section included 23 CAIs in 16 different countries.
Julie Becker, Deputy CEO of LuxSE and Founder of LGX, said:
“Today’s launch aims to cater to investors’ demand for climate-aligned investment opportunities and contributes to a low-carbon and more inclusive economy. While the bonds issued by CAIs may not necessarily be labelled as green, they finance low-carbon activities with a positive environmental impact. With this new section, investors can identify untapped opportunities in climate finance and support companies with climate-aligned business activities. In the transition decade that has just started, LGX is keen on encouraging a broader pool of strong investment opportunities to ESG-conscious investors.”
Sean Kidney, CEO of the Climate Bonds Initiative, added:
“This launch by LGX represents a positive step in market development; connecting investors and capital with companies that already have inherent low carbon business models. In an environment where climate and sustainability factors are becoming fundamental to investment decisions, the CAIs section opens new opportunities for finance to flow where it’s needed most.”