Luxflag Environment

The Label Luxflag Environment is aimed at thematic funds in the Environment sector and aims to reassure investors that the investment product actually and responsibly invests their assets in environment-related activities and sectors

Summary data :

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

Analytical data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-Environment	11	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	d	1	6
Luxflag-Environment	11	Genesis and development	The Environmental Label LuxFLAG was launched in June 2011 and is for environmental funds that aim to generate environmental performance and asset/sector growth with environmental practices.	d	1	11
Luxflag-Environment	11	Goals	The primary objective of the environmental label LuxFLAG is to assure investors that the investment product invests at least 75 percent of the fund's total assets in environmentally related areas by considering ESG factors in a transparent manner.	d	1	12
Luxflag-Environment	11	Promoters and administrators	The Label was created by the LUXEMBOURG FINANCE LABELLING AGENCY, an independent, international nonprofit association created in Luxembourg in July 2006 by seven public and private founding members with the aim of promoting the responsible investment industry by assigning a recognizable label to investment vehicles dedicated to the environment	d	1	13
Luxflag-Environment	11	SRI Approach	To obtain the label, funds will need to have an investment strategy aimed at environmental protection and and demonstrate that they consider ESG criteria in their decision-making processes	d	1	14
Luxflag-Environment	11	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 percent of the fund's total assets) and meeting general eligibility requirements	d	1	16
Luxflag-Environment	11	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-Environment	11	Allocation process	The Society candidates 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 Environment, which gives an eligibility opinion. The Board of Directors of Luxflag then decides 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-Environment	11	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-Environment	11	Focus on transparency	The fund must necessarily be classified as Article 8 or 9 (SFDR)	d	1	23
Luxflag-Environment	11	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 supervision equivalent to that of EU member states	d	1	24
Luxflag-Environment	11	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