Luxflag Greenbonds

The Label LUXFLAG Green Bond, launched in 2017, was the first of its kind worldwide and aims to reassure investors that the Green Bond follows internationally recognized standards and uses its proceeds to finance green projects.

Summary data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-Green Bond	14	Label	Luxflag-Green Bond	t	1	1
Luxflag-Green Bond	14	Nationality	Luxembourg - English	t	1	3
Luxflag-Green Bond	14	Management	label issued by LUXFLAG an independent Luxembourg-based non-profit rating agency	t	1	4
Luxflag-Green Bond	14	Label Type	Thematic	t	1	5
Luxflag-Green Bond	14	Website	https://www.luxflag.org/labels/green-bond/	t	1	7
Luxflag-Green Bond	14	Market	The label is aimed at Luxembourg funds and SICAVs.	t	1	8
Luxflag-Green Bond	14	Products	21 products as of September 2024	t	1	9
Luxflag-Green Bond	14	Links to funds	https://www.luxflag.org/labels/green-bond/labelled-gbs.html	t	1	10
Luxflag-Green Bond	14	Criteria	https://www.luxflag.org/labels/green-bond/	t	1	15
Luxflag-Green Bond	14	Periodicity	24 months	t	1	21

Analytical data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-Green Bond	14	Description	The Label Green Bond, launched in 2017, is the first of its kind worldwide and aims to reassure investors that the Green Bond follows internationally recognized standards and uses its proceeds to finance green projects.	d	1	6
Luxflag-Green Bond	14	Genesis and development	The Label Green Bond, launched in 2017, is the first of its kind worldwide. According to LuxFLAG , green bonds have enormous potential to finance climate change action, and Luxembourg offers the ideal environment for this with, alongside LuxFLAG, the Luxembourg Stock Exchange listing more than 50 percent of the world's green bonds	d	1	11
Luxflag-Green Bond	14	Goals	The primary objective of the Green Bond Label is to reassure investors that the Green Bond follows internationally recognized standards and uses its proceeds to finance green projects	d	1	12
Luxflag-Green Bond	14	Promoters and administrators	The Label was created by the LUXEMBOURG FINANCE LABELLING AGENCY, an independent, international nonprofit 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 recognizable label to green bond-type investment vehicles	d	1	13
Luxflag-Green Bond	14	SRI Approach	To obtain the label, funds must employ exclusionary policies on 100 percent holdings and have a clearly delineated thematic approach strategy	d	1	14
Luxflag-Green Bond	14	Mandatory Criteria	The minimum criteria to be met for obtaining the label are: having an Exclusion policy applied to 100 percent of holdings (Exclude those activities strately related to fossil fuels, coal, and nuclear energy), a well-defined thematic approach strategy (The applicant must use its proceeds to invest in one of the broad categories of potential eligible green projects recognized by LuxFLAG), and applying the SDGs within its processes	d	1	16
Luxflag-Green Bond	14	Additional criteria	Only minimum requirements for access to the label are given	d	1	17
Luxflag-Green Bond	14	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 Green Bonds Label Eligibility Committee, which gives an eligibility opinion. The Board of Directors of Luxflag 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-Green Bond	14	External certification	The label certifies each individual bond with the need for review every 24 months	d	1	22
Luxflag-Green Bond	14	Focus on transparency	The fund must follow internationally recognized guidelines/standards such as the Green Bond Principles to illustrate its commitment to transparency and disclosure. It should also provide ex-ante evaluation of the selection process and income management carried out by an external auditor	d	1	23
Luxflag-Green Bond	14	Focus on periodic checks	The applicant must commit to regular (every 24 months) reporting (use of proceeds or audit report, sustainability/ESG report) and also be subject to applicable regulatory requirements in EU member states or equivalent and must be issued and on a regulated stock exchange or equivalent	d	1	24
Luxflag-Green Bond	14	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