The Luxembourg Stock Exchange (LuxSE) and index engineering company Solactive announced the launch of the Solactive LGX Green Bond Impact Index. The new index is composed of a selection of green bonds listed on LuxSE and displayed on the Luxembourg Green Exchange (LGX), LuxSE’s platform for sustainable securities. According to LuxSE and Solactive, bonds selected for the new index will exclusively fund projects that have a positive environmental or climate impact.
Julie Becker, Deputy CEO of LuxSE and Founder of LGX, said:
“By contributing to this new green bond impact index, we take a step further in our mission to facilitate sustainable investment. All stakeholders need to be able to access transparent and meaningful information to make informed and sustainable investment decisions, and indices serve as guidance. The Green Bond Impact Index furthermore enhances the visibility of the green bond issuers displayed on LGX, who commit to maximum transparency. It is a pleasure for us to collaborate with a leading index provider like Solactive on this unique project.”
According to LuxSE, the exchange’s sustainable finance experts will ensure that the green bonds included in the index are compliant with recognised market standards, including the International Capital Market Association’s (ICMA) Green Bond Principles and the Climate Bonds Taxonomy, and provide documentation including an external review and a post-issuance report. Additionally, LuxSE will take liquidity concerns into account to make the index as relevant as possible for asset managers and investors wishing to invest in green securities.
Timo Pfeiffer, Chief Markets Officer at Solactive, said:
“As assets in the ESG space grow tremendously, the number of existing ESG products leave investors with a maze of opportunities. I am very happy that Solactive, with the expertise of LuxSE, is able to connect investors with meaningful investment opportunities via the Green Bond Impact Index, which serves as a transparent benchmark towards a greener future.”