Luxflag ESG
The Label LuxFLAG assesses sustainability commitments in mutual fund investment strategies and assists investors in selecting "ESG" products. The applicant must demonstrate how it integrates extra-financial risk management 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-based 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 is aimed at Luxembourg funds and SICAVs. | t | 1 | 8 |
| Luxflag-ESG | 12 | Products | 208 funds and products as of March 2025 | 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 true 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 of being the first European ESG Label. It was born out of a desire to give visibility to integrated ESG issues, which is the largest category in the responsible investment landscape with enormous growth potential. | d | 1 | 11 |
| Luxflag-ESG | 12 | Goals | 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 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 eligible investment vehicles | d | 1 | 13 |
| Luxflag-ESG | 12 | SRI Approach | To obtain the label, funds will necessarily have to have a strict policy of excluding assets that are not considered sustainable in addition to at least 3 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 to comply with obtaining the label are: having an appropriate Exclusion Policy (The fund must refrain from investing in industries and companies that do not consider the concept of sustainability) and complying with general eligibility requirements (The applicant investment fund must screen 100% of its Portfolio investment according to its ESG strategies and standards recognized by LuxFLAG) | d | 1 | 16 |
| Luxflag-ESG | 12 | Additional criteria | In order to obtain the label, it is also necessary for the fund to use at least three of the following ESG strategies: Best in class investment selection method (based on ESG ratings), Engagement policies of its holdings, Regulatory screening (not investing in holdings that may have violated 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 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 ESG, which gives an eligibility opinion. The Board of Directors of Luxflag decides on the awarding of the label. The process takes about 2 months. The Label lasts for one year and must be renewed. | d | 1 | 20 |
| Luxflag-ESG | 12 | 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-ESG | 12 | Focus on transparency | The fund must necessarily be classified as 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 supervision equivalent to that of EU member states | d | 1 | 24 |
| Luxflag-ESG | 12 | 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 |
Luxflag ESG2022-08-102025-01-22https://www.positivefinance.com/wp-content/uploads/2021/11/positive-finance-logo-rgb.svgPositive Financehttps://www.positivefinance.com/wp-content/uploads/2022/08/esg_positive.png200px200px
