Luxflag Climate Finance
The Label LuxFLAG Climate aims to give investors confidence that the funds concerned are contributing to the fight against climate change and/or adaptation 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 targets Luxembourg funds and SICAVs | t | 1 | 8 |
| Luxflag-Climate Finance | 10 | Products | 4 to the end of June 2022 | 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 | Objectives | The primary objective of the LuxFLAG Climate Finance Label is to assure investors that the investment product invests at least 75% of its total assets in investments with a clear and direct link to climate change mitigation and/or adaptation, taking into account 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 and international non-profit rating agency created in Luxembourg in July 2006 by seven public and private founding members with the aim of promoting the raising of capital for the responsible investment sector by assigning a recognisable label to investment vehicles dedicated to climate change | d | 1 | 13 |
| Luxflag-Climate Finance | 10 | SRI approach | To be awarded the label, funds will need to demonstrate that they have an appropriate strategy for excluding activities considered unsustainable, meet 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% of Portfolio (exclude those activities that can be considered harmful and unsustainable for the climate such as fossil fuel exploitation and nuclear power), meeting general eligibility requirements and having a strong thematic approach to Climate Action (invest at least 75% of total assets in investments 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 the files are examined by a committee of experts who decide on labelling, the overall management of the fund is evaluated to establish the consistency of the application with the objective of the label. | d | 1 | 17 |
| Luxflag-Climate Finance | 10 | Allocation process | The Society candidates must check their eligibility with Luxflag and prepare a letter of intent with a checklist of documents. The Label checks their eligibility and submits the file to the Label Eligibility Committee Luxflag Climate, which gives an eligibility opinion. The Board of Directors of Luxflag then decides on the awarding of the label. The process takes approximately 2 months. The Label has a duration of one year and must be renewed. | d | 1 | 20 |
| Luxflag-Climate Finance | 10 | External certification | The label is valid for one year and can only be renewed 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 expiry 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 details of its ESG strategy and funding objectives in relation to 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 Association for the Promotion of Finance in Luxembourg, the EIB, the trade association of fund managers (ALFI), the non-profit association ADA (Microcredit), the Association of Luxembourg Banks and the Luxembourg Stock Exchange. | d | 1 | 25 |
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