Luxflag ESG

The Label LuxFLAG assesses sustainability commitments in mutual funds' investment strategies and helps investors select ESG products. The applicant must demonstrate how it integrates the management of extra-financial risks with its investment strategy and throughout the investment process.

Summary data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-ESG	12	Label	Luxflag-ESG	t	1	1
Luxflag-ESG	12	Nationality	Luxembourg - English	t	1	3
Luxflag-ESG	12	Management	label issued by LUXFLAG an independent Luxembourg non-profit rating agency.	t	1	4
Luxflag-ESG	12	Label type	SRI	t	1	5
Luxflag-ESG	12	Website	https://www.luxflag.org/labels/esg/	t	1	7
Luxflag-ESG	12	Market	The label targets Luxembourg funds and SICAVs	t	1	8
Luxflag-ESG	12	Products	293 at the end of June 2022	t	1	9
Luxflag-ESG	12	Links to funds	https://www.luxflag.org/labels/esg/labelled-esg-funds.html	t	1	10
Luxflag-ESG	12	Criteria	https://www.luxflag.org/media/pdf/2021-Q2-ESG-List-of-LuxFLAG-Labelled-Products.xlsx	t	1	15
Luxflag-ESG	12	Periodicity	12 months	t	1	21

Analytical data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-ESG	12	Description	The Label LuxFLAG assesses genuine investment strategy commitments and helps investors with product selection. The applicant must demonstrate how it integrates its ESG strategy and criteria throughout the investment process.	d	1	6
Luxflag-ESG	12	Genesis and development	The LuxFLAG ESG Label was launched in May 2014 with the ambition to be the first European ESG Label. It stems from the desire to give visibility to integrated ESG issues, which is the largest category in the responsible investment landscape with huge growth potential.	d	1	11
Luxflag-ESG	12	Objectives	The primary objective of the LuxFLAG ESG Label is to assure investors that the investment product effectively incorporates ESG criteria throughout the investment process. Eligibility criteria require that applicant funds monitor 100 percent of their Portfolio investment according to three of the ESG strategies and standards recognized by LuxFLAG	d	1	12
Luxflag-ESG	12	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 industry by assigning a recognisable label to eligible investment vehicles	d	1	13
Luxflag-ESG	12	SRI approach	To qualify for the label, funds must have a strict policy of excluding non-sustainable assets, as well as at least three other ESG strategies for selecting investments from Best in Class, Regulatory Screening, Engagement, ESG Factor Integration and Impact Investing.	d	1	14
Luxflag-ESG	12	Mandatory Criteria	The minimum criteria for obtaining the label are: having an appropriate Exclusion Policy (The fund must refrain from investing in industries and companies that do not take the concept of sustainability into consideration) and complying with general eligibility requirements (The applicant investment fund must screen 100% of its Portfolio investment according to its ESG strategies and standards recognised by LuxFLAG)	d	1	16
Luxflag-ESG	12	Additional criteria	In order to obtain the label, the fund must also use at least three of the following ESG strategies: Best in class investment selection method (based on ESG ratings), Engagement policies for its holdings, Regulatory screening (not investing in holdings that may be in breach of international regulations), Integration of ESG factors and impact investing (investing in high social impact issues).	d	1	17
Luxflag-ESG	12	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 ESG, which gives an eligibility opinion. The Board of Directors of Luxflag 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-ESG	12	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-ESG	12	Focus on transparency	The fund must necessarily be classified as an Article 8 or 9 (SFDR) and must publish the entirety of its Portfolio at least once a year	d	1	23
Luxflag-ESG	12	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.	d	1	24
Luxflag-ESG	12	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

Luxflag ESG

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Analytical data :

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