The Luxembourg Stock Exchange (LuxSE) has launched the Transition Finance Gateway, a new platform aimed at enhancing transparency and supporting issuers on their journey toward net zero. The initiative focuses on the more than 500 non-financial corporate debt issuers listed on the exchange across both conventional and sustainable bonds.
The Gateway integrates detailed climate transition data from four leading providers, including the Net Zero Tracker (NZT), which was established in 2021 to track the credibility of net zero commitments globally. The NZT monitors over 4,000 entities — including countries, regions, and the largest 2,000 publicly listed companies — and evaluates the robustness of their climate pledges based on UN criteria.
John Lang, Project Lead at NZT, explained that the initiative arose from the need to provide transparency amid a proliferation of unclear or unverifiable net zero claims. “There’s a big difference between making a pledge and having a credible plan. Unfortunately, the market is still saturated with greenwashing and vague ambitions,” he said.
NZT’s data evaluates a range of factors, such as:
- Coverage of Scope 1, 2 and 3 emissions
- Existence of interim targets
- Transparency and governance
- Reliance on carbon offsets
- Board-level oversight of targets
This data empowers investors to distinguish between credible and weak climate strategies, helping them to allocate capital more effectively and structure financial instruments, such as sustainability-linked bonds, with greater accountability.
For issuers, the platform offers a benchmarking tool, allowing companies to evaluate and improve their climate transition plans in comparison with peers. Lang emphasised that featuring on the Gateway provides a way to demonstrate progress and engage meaningfully with stakeholders.
As interest in transition finance grows—particularly for high-emission sectors and emerging markets—the need for high-quality, comparable data is becoming critical. Lang noted that the market is shifting from a simple green/non-green divide toward recognising credible, long-term transition pathways.
Looking ahead, transition finance is expected to demand deeper transparency on business models, capital expenditure plans, and policy alignment. Lang urged companies yet to begin their transition planning to act now: “There’s no expectation to be perfect on day one, but you should be fully transparent… The transition is happening. Those that choose to lead will make the future.” The Gateway is part of LuxSE’s broader push to support sustainable finance and aligns with growing regulatory and investor demand for verifiable, high-integrity climate action.
