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Are you looking to combine socio-environmental impact and financial return? Wanting to contribute to the causes you believe in without sacrificing growth potential? Sustainable and responsible investment makes it possible.

CSR, SRI, ESG: cutting through the jargon

The themes embodied in the concept of responsible investment are gaining traction among both institutional and individual investors. Corporate Social Responsibility (CSR), Socially Responsible Investment and Sustainable & Responsible Investment (both of which can be abbreviated to SRI), Environmental, Social and Governance (ESG) criteria – it can be difficult for investors to find their way through the maze of acronyms and make informed investment decisions.

Investing with a sustainable vision

Sustainable & Responsible Investment is defined as a long-term approach which, according to Eurosif* “combines fundamental analysis and engagement with an evaluation of ESG factors in order to better capture long-term returns for investors, and to benefit society by influencing the behaviour of companies”.

* www.eurosif.org, an association promoting sustainability through European financial markets.

ESG: extra-financial analysis

Financial data alone are no longer sufficient to evaluate a company. Environmental, Social and Governance (ESG) factors are the three pillars of Eurosif’s extra-financial analysis.

ESG criteria

  • Environmental: Waste management, reduction of greenhouse gas emissions, prevention of environmental risks, etc.
  • Social: Accident prevention, employee training, respect for employee rights, the supply chain, employee-labour relations, etc.
  • Governance: Independence of the board of directors, the management structure, the presence of an audit committee, etc.

Different management approaches

The management of the portfolio may follow different approaches, such as ‘exclusion’, ESG analysis, themed or impact investing, etc. Although each of these may be operated independently, they are not exclusive and are often combined within a portfolio. Before making any investment decision, it is wise to get advice from experts who can help you define your approach and make the choices that are right for you.

A commitment to responsible investment

In addition to its active CSR policy, Banque de Luxembourg has always adopted a responsible investment strategy. For several years now, BLI – Banque de Luxembourg Investments S.A., Banque de Luxembourg's asset management company, has been a signatory of the United Nations-supported Principles for Responsible Investment (UNPRI).

Banque de Luxembourg offers a range of sustainable and responsible products, notably the Sustainable Horizon fund which carries the LuxFLAG ESG label and has a specific management mandate, spreading its assets across different financial instruments that all respect ESG criteria. This momentum is being actively pursued so that investors who so wish can give meaning to their wealth.

 

Are you interested in investing in a sustainable and responsible way?

Our teams are by your side to guide you. Feel free to get in touch.

Viviane Feiereisen
Private Banking Adviser
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