LUXFLAG Environment

The Label Luxflag Environment is aimed at thematic funds in the Environment sector and aims to reassure investors that investment funds are effectively and responsibly investing their assets in environment-related activities and sectors.

Generalities

Label	Luxflag-Environment
Nationality	Luxembourg - English
Management	label issued by LUXFLAG an independent Luxembourg non-profit rating agency.
Label type	Thematic
Website	https://www.luxflag.org/labels/environment/
Market	The label targets Luxembourg funds and SICAVs
Products	8 at the end of June 2022
Links to funds	https://www.luxflag.org/labels/environment/labelled-eivs.html
Criteria	https://www.luxflag.org/media/pdf/2021-Q2-ENV-List-of-LuxFLAG-Labelled-Products.xlsx
Periodicity	12 months

Detailed data

Description	The Label is aimed at environmental thematic funds and is designed to reassure investors that the investment product actually and responsibly invests their assets in environmentally-related sectors.
Genesis and development	The Environmental Label LuxFLAG was launched in June 2011 and is aimed at environmental funds that aim to generate environmental performance and asset/sector growth with environmental practices.
Objectives	The primary objective of the environmental label LuxFLAG is to assure investors that the investment product invests at least 75 per cent of the fund's total assets in environmentally related sectors, taking into account ESG factors in a transparent manner.
Promoters and administrators	The Label was created by the LUXEMBOURG FINANCE LABELLING AGENCY, an independent, international non-profit association set up in Luxembourg in July 2006 by seven public and private founding members with the aim of promoting the responsible investment sector by assigning a recognisable label to investment vehicles dedicated to the environment
SRI approach	To qualify for the label, funds must have an environmentally friendly investment strategy and demonstrate that they take ESG criteria into account in their decision-making processes.
Mandatory Criteria	The minimum criteria to be met for obtaining the label are: having a policy of thematic approach to investment strongly linked to environmental protection (funds must have a Portfolio investment in environment-related sectors corresponding to at least 75 per cent of the fund's total assets) and meeting the general eligibility requirements
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.
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 Environment, 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.
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.
Focus on transparency	The fund must necessarily be classified as Article 8 or 9 (SFDR)
Focus on periodic checks	Compliance with the criteria is monitored every 12 months by LuxFLAG and in addition each fund must be subject to supervision by an EU Member State or to supervision equivalent to that of the EU Member States.
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.