Euronext - 2019 Universal Registration Document

Euronext, a sustainable exchange 3

Euronext’s Five ESG Impact Areas and the Sustainable Development Goals

FIG. 3 EURONEXT GREEN BOND LISTINGS PER ISSUER TYPE

Euronext Green Bonds is designed to speak to issuers across the globe – so not just European issuers. For example, it is predicted that 50% of green bond issuance will originate from China by 2022. There are currently 3 Chinese issuers with green bonds listed in Paris and Dublin. The area provides issuers with the opportunity to increase their “green visibility” and to showcase their ESG credentials – it creates an engaged community of leading issuers involved in sustainable investments. The area also speaks to investors and acts as a discovery tool in order to locate green bond investments. It effectively reduces “search costs” for investors seeking green investments and should provide investors with confidence through open transparent policies and standards over the green nature of their investments. Eligible green bonds will be listed on a Euronext market, aligned with recognised industry standards such as ICMA GBPs or CBI Taxonomy, and accompanied by an independent third party review – most commonly a second opinion from an approved verifier. The process of assessment is centralised in Dublin and applicants will complete and submit a Green Bond Declaration Form to debt@ euronext.com. One positive outcome arising from the Euronext Green Bonds initiative is the gathering of relevant green finance contacts within issuer organisations. Euronext contacted all issuers directly and lessened our dependencies on intermediaries. Going forward Euronext will involve intermediaries in the process of getting issuer consent for inclusion of eligible green bonds in the area. Successful outcomes from a Euronext green bond platform include comprehensive market recognition of Euronext Green Bonds; cessation of leakage of green bond issuers from Euronext home countries to the Luxembourg Stock Exchange; and an increase in market share relative to London and Luxembourg. KPI’s for Euronext Green Bonds were established in October 2019. The KPI is a measurement of market share versus or main competitors. The target is an increase in market share from 41.33% to 50% in 3 years following launch of Euronext Green Bonds – note that this represents a 21% increase in market share over the 3 year period of 2020–2023.

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Sovereign Non-Financial Corporate Local Government Government Backed Entity

Financial Corporate Development Bank ABS

Stock exchanges are playing a vital role in the green bond issuance market by establishing dedicated green bond platforms for issuers to effectively showcase their green credentials as they relate to bond issuance. Including Euronext, there are now 6 European stock exchanges with green bond segments which were established between 2015 and 2019. There are also green bond segments established in Japan, Johannesburg, Mexico, Shanghai and Taipei exchanges. The main competition for Euronext in the green bond space is from the London and Luxembourg stock exchanges. The key means to attract green bond issuers is to ensure Euronext is ideally positioned to deliver to the trend of issuer demand for increased visibility. On 5 November 2019, Euronext launched Euronext Green Bonds. This is a platform where all eligible and consenting green bond issuers and securities listed in each Euronext jurisdiction are consolidated onto and visible from a specific area of the Euronext website. This initiative is more concerned with the immediate realization of benefits from a PR and strategic positioning perspective of what the Euronext Group already has accrued in terms of green bond listings. Including Euronext Amsterdam, Belgium, Dublin, Lisbon, Oslo and Paris, there are over 242 securities listed from 108 issuers (Jan. 3 rd ). Almost 80% (+€100bn) of Euronext listed green bond issuance is now included on Euronext Green Bonds – confirming again that green issuers are demanding more visibility.

October 2019 No. of Green Bonds Market Share Bonds No. of Issuers Market Share Issuers Weighted Total Market Share Euronext 207 35.71% 94 47.16% 41.33% Luxembourg 273 47.16% 72 36.23% 41.59% London 100 17.85% 33 16.58% 17.11%

The next steps for Euronext Green Bonds include: n continue to identify and record all green bonds listed in each Euronext location and follow up with all issuers. Get the intermediaries involved; n meet with key influencers Euronext Home Countries, London, Nordics, Mediterranean, China Q1+2 2020. Sponsorship EF and CBI annual events; n expand to include Sustainable bonds Q1 2020; n explore trading possibilities and index creation Q3 2019 – Q4 2020;

n ensure criteria for Euronext Green Bonds is also aligned with EU Taxonomy Regulation; n make applications for Euronext to participate in relevant industry working groups. A.5. ESG Commodities Contribution The commodity sector is an important contributor to the global ESG agenda and in particular with regard to the sustainability criteria for the realisation of the transition.

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2019 UNIVERSAL REGISTRATION DOCUMENT