Luxflag

LuxFlag’s Sustainability Investment Week (LSIW24) kicked off on Tuesday, with several speakers sharing their relative optimism around commitments to ESG and impact investing.

Luxembourg’s financial sector labelling agency LuxFlag granted its ESG and sustainability labels to five new investment products in the second quarter of 2023. This  brings the total number of labelled investment and insurance products to 326, with a combined asset under management value of 166 billion euro.

When it comes to ESG and sustainable investing, Luxembourg’s financial regulator is keen to ensure that investment funds will stick to their promises when they sell products that are branded as green and sustainable. More guidance is coming soon, and the regulator plans “a deep compliance check” for the third quarter of 2023.

The EU’s sustainable finance framework is widely recognised as immensely complex. For private equity firms, it’s even more so, especially now that more and more investors demand that their investments are made in funds with sustainable assets. 

ESG isn’t a project. It isn’t about appointing a team who can bolt sustainability on to an asset management operation. To win the trust of investors, staff, regulators, civil society, the press, ESG must be embedded in strategy, the LuxFLAG Sustainable Investment Week 2022 was told on Monday.

Young investors are seen as a bit of a wild card by the investment industry. But look closely and it’s obvious that many young investors are fundamentally cautious due to their financial circumstances, while sympathising to a greater or lesser extent with rebellious social media elements intent on taking the financial industry down a notch or two.

Fund managers across Europe can opt for a label to certify their investment product does what it says it does. The Luxembourg Finance Labelling Agency, also known as Luxflag, has certified some 365 funds, mostly with an ESG label. Luxflag chair Denise Voss spoke to InvestmentOfficer.lu for a podcast.

“A label is about certifying or giving clarity to investors, that what they invest in, is what it says on the tin. We’re actually not saying you must invest in this or that,” said Voss. 

Luxembourg retained its lead last year as the biggest global hub for sustainable investment funds. Nearly half of all ESG assets in Europe now have a home in Luxembourg, according to LFF, while the appeal of the Luxembourg Green Exchange continues to grow.

The Luxembourg Fund Labelling Agency (commonly-known as LuxFLAG) has announced the launch of its Sustainable Insurance Product Label certification product.

This certification will be awarded to “eligible insurance products that assist with the transition to mitigate and adapt to the climate crisis, as well other environmental and social issues” that are part of the United Nations Sustainable Development Goals.

Sachin Vankalas, the Managing Director of LuxFlag, has passed away unexpectedly. The LuxFlag Board of Directors and the LuxFlag team are deeply saddened to learn of the sudden passing of Vankalas, the organization said in a brief press release. 

The general manager of LuxFlag, Luxembourg’s sustainable finance lobby group, has died of Covid-19 after battling the disease in hospital, a spokesperson confirmed. Vankalas, who worked at LuxFlag for 10 years, died at the age of 38.