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Luxembourg

Green Exchange

(LGX)

2018 - 1

Sustainable (r)evolution

Sustainability is not a passing fad!

2018 - 2

* World Economic Forum – The Global Risks Report 2018

ESG risks are real and they are here to stay

2018 - 3Source: UNCTAD, 2014

How much needs to be invested?

Between USD 1.5 and 10 trillion of additional investments per year until 2030

2018 - 4

Bring SCALE to the market

Enhanced product visibility (lists)

Increased investor base

Additional liquidity (trading)

Indices

Promote TRANSPARENCY & COMPARABILITY

Guidelines/rules

Integrity and trust

Lower green/social washing risk

Foster INTERNATIONAL COOPERATION

Disseminate best practices

Create convergence around common metrics/practices

How do stock exchanges come in?

2018 - 5

Strong integrated approach

Involvement in COP

Industry groups and bodies

EU Regulator

NGOs

2018 - 6

Sustainable (r)evolution

LGX, Luxembourg’s success story

2018 - 7

Creation of the world’s first and only green exchange in September 2016

Filling a market gap

2018 - 8

Bridging the needs of issuers and investors (1/2)

IssuersLGXInvestors

Projects

2018 - 9

For issuers

Optimal visibility for their additional disclosure efforts

Enhanced sustainability profile (e.g. shareholders, consumers)

Free upload of green, social and sustainable securities documentation

Transparency around their sustainability strategy

For investors

Easy access to green, social and sustainable labelled securities

Free and unrestricted access to sustainability-related information

Improved comparability of green, social and sustainable securities

Transparency around the invested universe

Bridging the needs of issuers and investors (2/2)

2018 - 10

Global reach

Geographical distribution of LGX issuers

160% growth since 2016

USD 110+ billion issued in total

230+ securities denominated in 19 currencies

50% market share of green bonds listed worldwide

LGX

2018 - 11

Green bond issuers*:

*International and Chinese domestic green bonds

Issuers displayed on LGX

Social and sustainability bond issuers:

2018 - 12

Sustainable (r)evolution

Looking ahead with optimism

2018 - 13

Some questions remain unanswered

Regulation

Incentives

Costs

TaxonomyData

KPIsMetrics

November 2016 - 14

ObrigadaCHIARA CAPRIOLIBusiness Development Manager

cca@bourse.lu

Contacts

PAULA REDONDO PEREIRASenior Regulatory Counsel

prp@bourse.lu