LSFI

A recent update of a Luxembourg sustainable finance report notes that two-thirds of the assets under management of Luxembourg UCITS – 2.8 trillion euros at the end of June 2023 – report under one of the two designations set out by European rules for green investing. However, mention of investment-related greenwashing is conspicuous by its relative absence in the report.

The Luxembourg Sustainable Finance Initiative (LSFI) on Wednesday launched a new toolkit to support financial professionals in navigating the complex maze of the European Union’s sustainable finance regulation.

The Luxembourg Sustainable Finance Initiative (LSFI) has identified a series of urgent training gaps within the finance industry that need to be addressed over the next two years, according to a recent report. This detailed examination of current training programs has laid the groundwork for a set of approved actions, designed to strengthen sustainability practices in the industry.

Luxembourg’s leading financial sector associations, together with the supervisory authorities and the government, are about to launch a public campaign that seeks to elucidate the general public in the grand duchy on sustainable finance. 

In particular, the campaign aims to make clear that sustainable investing is more than just environmental ‘green finance’ and that ESG investing also relates to social issues and the governance of companies.

To some spectators, many ESG funds engage in greenwashing, making little serious attempt to boost sustainability. To others, this movement is part of a woke agenda that unfairly bashes the energy industry. Yet, “not yet proven” is the conclusion of a new Luxembourg report about the effect of ESG investing on the global economy, and thus ultimately the environment and society. 

When it comes to sustainability, all actors, including the finance sector, need to develop a suitable level of understanding before policies and investment strategies can translate into impact, explains Nicoletta Centofanti, head of the Luxembourg Sustainable Finance Initiative, in an interview.

We’re finishing a productive week at Investment Officer Luxembourg in terms of news stories, with surprisingly strong and growing interest from international readers.

A solid return on investment and an acceptable level of risk remain the top factors for investors to consider when picking their investments, according to a new sustainable finance survey conducted among a representative section of the general public in Luxembourg.

Respect for human rights and the reputation of companies invested in are not seen as a leading factors for investors, said the survey, conducted among 1,100 people in April and May of this year.

The Luxembourg Sustainable Finance Initiative, a public-private body known as LSFI, has decided to create four new working groups to help the industry better come to grips with challenges posed by Environmental, Social and Governance issues.