As part of Nasdaq’s commitment to sustainability, and based on the increased demand for sustainable investments, we are launching Nasdaq Green Designations called Nasdaq Green Equity Designation and Nasdaq Green Equity Transition Designation to support equity issuers with their green business models and strategies.
Nasdaq Green Equity Designation and Nasdaq Green Equity Transition Designation will be available to new and existing equity issuers on Nasdaq Main Markets and First North Growth Market in Sweden, Finland and Denmark.
To be eligible for Nasdaq Green Equity Designation, companies must have more than 50% of their turnover deriving from green business activities. Additionally, at least half of their investments must be allocated to activities that deliver clear environmental benefits, and their turnover derived from fossil fuel activities must be less than 5%.
Moreover, companies in the pre-turnover phase can qualify for this designation based on the green investment threshold only. As soon as a pre-turnover company generates turnover, it must comply with the minimum 50% turnover requirement.
For Nasdaq Green Equity Transition Designation, companies must have more than half of their investments placed in green business operations. While there is no minimum threshold for turnover from activities with clear environmental benefits, entities must have less than 50% of their turnover deriving from fossil fuels.
The new designations build upon Nasdaq’s years-long commitment to sustainability. In 2015, Nasdaq launched the world’s first Sustainable Bond Market, which has more than doubled in size every year since and recently surpassed 300 listed instruments across over 80 issuers in the Nordic region. Following the strong growth, Nasdaq expanded its offering to include additional segments.
Four years later, Nasdaq launched the Nasdaq Sustainable Bond Network (NSBM), which is a global platform dedicated to increasing transparency and accessibility to environmental, social and sustainability bonds. The NSBM enhances the sustainable bonds’ investment process by providing investors with detailed information on sustainable bonds via framework documents and impact reports.
For further information on Nasdaq Green Equity Designation and Nasdaq Green Equity Transition Designation, please click here.
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