What role can data play in advancing transparency and progress in the climate transition? This month, we interviewed Marie-Adélaïde Bullukian, Sustainable Finance Senior Analyst at the Luxembourg Stock Exchange (LuxSE), following the launch of the Transition Finance Gateway, which helps professional on their net-zero journey.
We discussed the reasons behind the creation of the Gateway, its benefits for investors and issuers, and what distinguishes it from earlier LuxSE initiatives.
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Marie-Adélaïde Bullukian, Sustainable Finance Senior Analyst, at Luxembourg Stock Exchange
LSFI: What is the Transition Finance Gateway, and why was it launched?
Marie-Adélaïde Bullukian (M.-A.B.): The Transition Finance Gateway is a new initiative created by LuxSE, and was established to enhance transparency, clarity, comparability, and harmonisation in climate transition finance. By working with the unique expertise from four data providers—CDP, the Net Zero Tracker, the Science-Based Targets Initiative (SBTi), and the Transition Pathway Initiative (TPI) Centre— the Gateway offers valuable insights into the progress that non-financial corporate debt issuers have made on their respective transition journeys.
The Gateway includes information and data points such as the presence of near-term science-based targets and whether companies disclose their transition financing plans. It consolidates existing transition data into a single gateway, centralising resources and simplifying the process for users seeking transition data.
Another important feature of the Gateway is that it is publicly available. This means that anyone who is interested in transition finance data can go directly to our website and explore it at no cost.
LSFI: What is the main benefit of the Gateway for investors?
M.-A.B.: The main benefit of the Transition Finance Gateway for investors is that it provides centralised and concise access to entity-level transition data on LuxSE’s more than 500 non-financial corporate debt issuers. By presenting the assessments of multiple data providers in a consolidated way, it allows investors to explore opportunities and make more informed investment decisions. In short, the Gateway makes it easier for investors to identify issuers which are making progress on their climate transition journey. Additionally, it facilitates engagement with issuers by offering a publicly available space to discuss how different companies are navigating their climate transition.
On the other hand, for the non-financial corporate issuers who list their bonds on LuxSE, the Gateway is an opportunity to bring more visibility to their transition efforts and specific transition finance data, at no additional cost.
LSFI: How does the Transition Finance Gateway differ from earlier LuxSE initiatives?
M.-A.B.: The Transition Finance Gateway differs from earlier LuxSE initiatives by emphasising entity-level data in contrast to focusing on instrument-level information. By providing issuer data, the Transition Finance Gateway bridges the gap between issuance and issuer information, fostering greater transparency, trust, and engagement.
This evolution aligns with the changing market landscape, where stakeholders are increasingly interested in an issuer’s comprehensive climate transition strategy. Indeed, the ICMA Climate Transition Finance Handbook underscores the importance of integrating issuer-level accountability and strategy into sustainable finance frameworks, beyond issuance-level credentials.
LSFI: What kinds of enhancements or expansions do you envision for the future of the Transition Finance Gateway? How could these further support both issuers and investors in advancing the net-zero transition?
M.-A.B.: Possible future enhancements or expansions of the Transition Finance Gateway strive to further the objective of providing transparency to both issuers and investors. We are committed to developing additional services around the Gateway to support both issuers and investors in achieving their climate transition goals.
The Transition Finance Gateway currently encompasses 500+ global non-financial LuxSE corporate issuers across all types of issuances, including both conventional and sustainable bonds. We encourage other issuers who are advancing on their climate transition journey and that wish to bring visibility to their transition finance data, to contact us to learn more about the Gateway at transitionfinance@luxse.com.
