A move by Euronext to offer ESG-related bonds across several new important financial categories, has been welcomed by SIF Ireland.
During SIF Ireland’s second annual ESG Day, Euronext last November announced the creation of a Euronext Green Bonds offering across its six regulated markets. The initiative is operated out of Euronext Dublin, the group centre of excellence for Debt, Funds and ETFs, and is designed to encourage and promote more sustainable investment in Europe.
With an almost 70% increase in the number of issuers since launch, Euronext is now expanding this offering to other ESG-related bonds, including blue, social, sustainability and sustainability-linked bonds. Eligible bonds will be aligned with recognizable industry standards and be accompanied by an external review.
Euronext is the only exchange consolidating ESG bonds listed in multiple locations onto one highly visible area, thus providing a means for issuers to showcase their ESG credentials and for investors to rapidly identify Euronext listed ESG bonds.
To date, 231 ESG bonds from 95 issuers are featured on the new Euronext ESG Bonds section representing over 80% of the Euronext ESG bond footprint of €165+bn.
The Covid-19 crisis has again demonstrated the relevance of ESG-focused bonds as more social and sustainability bonds have issued from March to June 2020 versus the same period last year. This recent issuance includes green, social and sustainability bonds from Financials, Corporates, Municipalities and Local Government Entities for example.
On 2 June 2020, Euronext became the first exchange to sign the nine Ocean Principles with the ambition to take a leading role in advancing the Blue Economy. Euronext contributed to the UN Global Compact Sustainable Oceans Business Group formalising the UN Blue Bond principles, available since April 2020.