Euroclear has announced a new investment in Greenomy, a Belgium-headquartered sustainable finance technology platform (completed on January 31, 2022).
Financial terms of the deal have not been shared publicly.
Established in 2020, Greenomy assists corporates, credit institutions and asset managers with adhering to updated EU sustainable finance legislation by digitalizing the data capturing and reporting process.
The firm also offers data analytics features to assist with enhancing sustainability performance and facilitate the redirection of funds towards sustainable initiatives, “in line with the objectives of the EU Green Deal.”
Greenomy will also “gradually integrate other non-EU Green Taxonomies to offer users a one-stop solution for their global operations.”
Greenomy’s goal is it to become an international user-owned ESG market infrastructure “adopting a neutral and scalable utility across multiple jurisdictions.”
In a paper on sustainable finance published by Euroclear and PwC, at the World Economic Forum’s Sustainable Development Impact summit, “opportunities for financial market infrastructures to support market participants and asset classes were outlined.”
The market pillars included:
- Encouraging greater sustainable finance issuance, through reducing infrastructure, regulatory and informational barriers to issuance
- Processing ESG information flows including ESG metrics, disclosure and assurance
- Expanding the market to more asset classes and participants
Euroclear’s investment in Greenomy “supports all the pillars of this financial market infrastructure sustainable blueprint.”
Euroclear will now be able to “bring non-financial reporting to its network, enabling a reduction of issuance barriers for sustainable finance.”
From a business line perspective, the ESG data from issuers captured by the platform will also provide the opportunity to ‘support the asset manager segment’s reporting needs including Euroclear’s FundSettle, MFEX and iETF clients.”
Alexander Stevens, CEO at Greenomy stated:
“We are thrilled to have Euroclear join the Greenomy mission. Euroclear’s experience, network and infrastructure will increase scale, permitting a new suite of clients to benefit from our solutions. Together with Euroclear and future partners, we aim to bridge the gap between existing and new ESG taxonomies and standards, offering a new global market infrastructure, supporting both issuers and financial institutions in their sustainability strategy. This will ultimately help real economies transition faster towards a truly sustainable future.”
Lieve Mostrey, CEO Euroclear Group remarked:
“Euroclear is highly committed to building a sustainable marketplace through enhancement of its capabilities, strategic partnering and investments. Greenomy has a strong and compelling ESG value proposition with its unique market position, data model and an end to end platform which connects issuers, banks and investors. This is a truly complementary partnership that enhances the services and products of both companies. We look forward to working with Greenomy to help it grow and become a global ESG market infrastructure utility with a far reaching and diverse ecosystem.”
As covered, the Euroclear group is the financial industry’s “trusted” provider of post trade services.
Euroclear offers settlement and custody of local and cross-border securities for bonds, equities and derivatives to investment funds. Euroclear claims to be “a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.”