Luxflag Climate Finance

The Label LuxFLAG Climate aims to give investors confidence that the funds involved are contributing to combating climate change and/or adapting to its consequences, in line with the principles of the European Union

Summary data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-Climate Finance	10	Label	Luxflag-Climate Finance	t	1	1
Luxflag-Climate Finance	10	Nationality	Luxembourg - English	t	1	3
Luxflag-Climate Finance	10	Management	Label issued by LUXFLAG an independent Luxembourg-based non-profit rating agency	t	1	4
Luxflag-Climate Finance	10	Label Type	Thematic	t	1	5
Luxflag-Climate Finance	10	Website	https://www.luxflag.org/labels/climate-finance/	t	1	7
Luxflag-Climate Finance	10	Market	The label is aimed at Luxembourg funds and SICAVs.	t	1	8
Luxflag-Climate Finance	10	Products	11 funds and products as of September 2024	t	1	9
Luxflag-Climate Finance	10	Links to funds	https://www.luxflag.org/labels/climate-finance/labelled-cfiv.html	t	1	10
Luxflag-Climate Finance	10	Criteria	https://www.luxflag.org/media/pdf/2021-Q2-CF-List-of-LuxFLAG-Labelled-Products.xlsx	t	1	15
Luxflag-Climate Finance	10	Periodicity	12 months	t	1	21

Analytical data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-Climate Finance	10	Description	The Label LuxFLAG Climate is intended to give investors confidence that the funds involved are contributing to combating climate change and/or adapting to its consequences, in line with the principles of the European Union.	d	1	6
Luxflag-Climate Finance	10	Genesis and development	The LuxFLAG Climate Finance Label, launched in September 2016, helps unlock capital from institutional and private investors to help finance climate change action	d	1	11
Luxflag-Climate Finance	10	Goals	The primary objective of the LuxFLAG Climate Finance Label is to assure investors that the investment product invests at least 75 percent of total assets in investments with a clear and direct linkage to climate change mitigation and/or adaptation by considering ESG factors in a transparent manner.	d	1	12
Luxflag-Climate Finance	10	Promoters and administrators	The Label was created by the LUXEMBOURG FINANCE LABELLING AGENCY, an independent, international nonprofit rating agency created in Luxembourg in July 2006 by seven public and private founding partners with the aim of promoting capital raising for the responsible investment sector by assigning a recognizable label to investment vehicles dedicated to climate change	d	1	13
Luxflag-Climate Finance	10	SRI Approach	To qualify for the label, funds will need to demonstrate that they have an appropriate exclusion strategy for activities considered unsustainable, abide by the general eligibility conditions required by the label, and have a thematic approach strongly linked to climate change mitigation and adaptation	d	1	14
Luxflag-Climate Finance	10	Mandatory Criteria	Mandatory criteria are : having valid Exclusion policies applied to 100 percent of Portfolio (exclude those activities that can be considered harmful and unsustainable for the climate such as fossil energy exploitation and nuclear power), meeting general eligibility requirements, and having a strong thematic approach to Climate Action (investing at least 75 percent of total assets in investments related, with a clear and direct link, to climate change mitigation and/or adaptation or cross-cutting activities)	d	1	16
Luxflag-Climate Finance	10	Additional criteria	As practices are reviewed by a committee of experts who decide on labeling, the overall conduct of the fund is evaluated for the purpose of determining the consistency of the application with the objective of labeling	d	1	17
Luxflag-Climate Finance	10	Allocation process	The Society applicants must verify their eligibility with Luxflag and prepare a letter of intent with a checklist of documents. The Label checks their eligibility and submitted the file to the Label Eligibility Committee Luxflag Climate, which gives an eligibility opinion. The Board of Directors of Luxflag then deliberates on the award of the label. The process takes about 2 months. The Label lasts for one year and must be renewed.	d	1	20
Luxflag-Climate Finance	10	External certification	The Label is valid for one year, and it will be possible to renew it only after ensuring that the eligibility criteria are still met. To this end, LuxFLAG will send the fund an invitation to submit an updated application at least two months before the expiration of its Label	d	1	22
Luxflag-Climate Finance	10	Focus on transparency	The fund must necessarily be classified as an Article 9 (SFDR) and provide in detail its ESG strategy and funding objectives on Climate Action	d	1	23
Luxflag-Climate Finance	10	Focus on periodic checks	Compliance with the criteria is monitored every 12 months by the Climate Finance Label Eligibility Committee of LuxFLAG	d	1	24
Luxflag-Climate Finance	10	Related parties	Luxflag is a 'joint initiative of the Luxembourg government, the Luxembourg Finance Promotion Association, the EIB, the industry association of fund managers (ALFI) the nonprofit ADA (Microcredit) Association, the Association of Luxembourg Banks, and the Luxembourg Stock Exchange.	d	1	25

How to read table data :

ISIN: is the identification code most commonly used to identify funds, ETFs and other financial instruments
Fund: by clicking, you will be able to view the simplified fund fact sheet
Currency : is the currency in which the fund is denominated
Esgap: "ESG Adjusted Performance." It is a proprietary measure of MCSR that allows a summary evaluation of funds considering the quality of the sustainable investment process, continuity, and measurement of performance and risk parameters. The maximum value is 18 points.
MCSRIntensity: This is a proprietary measure of MCSR that summarizes assessments of the quality of the sustainable investment process. Funds rated 5 have an excellent investment process in ESG instruments. Funds with lower scores are still preferable to funds that do not engage in positive finance.
Average Intensity: This is the average of ESG intensity ratings related to individual parameters
SFDR: This is the European regulation that commits Society management to declare whether the fund also considers ESG aspects (Article 8) or whether ESG aspects are prioritized over financial aspects (Article 9)
Performance: Measures the fund's performance continuity (expressed in euros) over three different time periods with a scale from 1 to 5. Funds rated 5 are excellent in performance.
Risk: Measures the continuity of risk taken by the fund in terms of volatility over three different time periods with a scale of 1 to 5. Funds rated 5 are excellent at controlling risk.
Cost: This is the aggregate cost of the fund on an annual basis. In Portfolio it is the aggregate cost of all its component instruments.
SRRI: This is the legal parameter that defines the measure of risk that the fund should maintain over time. The scale ranges from 1 (lowest risk) to 7 (highest risk)
Performance 6 months / 1 year / 3 years: performance expressed in euros over the past 6 months / 12 months / 36 months
Classification: either the market in which the fund invests or the management objective, depending on the context
Instrument: Indicates whether the financial instrument is a fund, ETF or fund of funds
Type: Indicates whether the fund's Portfolio and investment policy is predominantly equity, bond, whether it balances the two components, or whether the manager is free to vary the extent and risk
Theme : when a fund is "thematic," it means that it specializes in managing in a specific investment area.
Environment: is the assessment of ESG intensity related to Environmental aspects
Good Governance is the assessment of ESG intensity related to aspects of good governance
Society is the assessment of ESG intensity related to aspects of Society
Transparency is the assessment of the intensity with which Society management is transparent in its ESG content
Processes is the assessment of the intensity with which Society management is qualified in its ESG processes