Euroclear makes strategic ESG investment in Greenomy

Founded in 2020, Greenomy helps corporates, credit institutions and asset managers comply with new European Union sustainable finance legislation by digitalizing the data capturing and reporting process. The company also provides data analytics features to help improve sustainability performance and facilitate the redirection of funds towards sustainable activities, 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 ambition is to become a global user-owned ESG market infrastructure adopting a neutral and scalable utility across multiple jurisdictions. 

In a recently published paper on sustainable finance released jointly 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 Greenomy commented: “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 said: “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.” 

Euroclear group is the financial industry’s trusted provider of post trade services. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.

The Euroclear Group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & International. The Euroclear Group settled the equivalent of EUR 992 trillion in securities transactions in 2021, representing 295 million domestic and cross-border  transactions, and held EUR 37.6 trillion in assets for clients by end 2021.

Greenomy helps corporates and financial institutions measure, disclose and improve their sustainability levels according to new EU sustainable finance standards (EU Taxonomy, SFDR and NFRD/CSRD). A one-stop shop for sustainability reporting software, generating substantial time and cost savings, recently recognised at the G20 TechSprint competition in first place for Sustainable Finance solutions.