On 1 January 2024, the five risk profiles of our socially responsible funds mandate were granted the LuxFLAG label. This label is an independent and internationally recognised validation that rewards investment products that set the highest possible standards in responsible and sustainable investing.
A label to identify sustainable investment products
LuxFLAG (The Luxembourg Finance Labelling Agency) is an independent non-profit association founded in 2006 by seven private and public bodies: the European Investment Bank, the Luxembourg Stock Exchange, ADA (an inclusive finance organisation), LuxembourgForFinance, ALFI (Luxembourg fund association) and ABBL (bankers’ association).
LuxFLAG aims to support sustainable finance, in particular through its labelling agency, which encourages eligible investment vehicles, and more generally companies, to act responsibly and play their part in sustainable development.
Through a number of labels, LuxFLAG enables investors to invest responsibly and identify funds that comply with ESG (Environmental, Social and Governance) criteria.
How is this label awarded?
To obtain the LuxFLAG label, all discretionary management mandates are carefully examined by a team of specialists who ensure that the mandate meets the following criteria of eligibility:
- It must be a financial product that is clear about its sustainable investment policy and how it takes ESG criteria into account in its selection process
- 100% of the portfolio must be selected on the basis of an ESG review
- It must comply with LuxFLAG’s ESG exclusion policy*, which excludes specific controversial sectors.
A unique tool for asset managers
What is Banque de Luxembourg’s approach?
We do business in a considerate and responsible way vis-à-vis our clients, employees, shareholders and the community, and this is reflected in our investment solutions.
We are mindful of responsibility and sustainability. In particular, this means that we take into account not only financial criteria in our investments, but also non-financial, especially environmental, social and governance considerations.
Recognised expertise
Obtaining this label awarded to discretionary mandates that enable the transition to a more sustainable economy is an accolade to our know-how and expertise, which have won recognition and praise.
Find out more about the main principles and criteria that underpin responsible and sustainable investment, as well as our Bank’s approach, in our Guide, available at the dedicated page on our website.