Luxembourg's Kirchberg plateau, as seen from Pfaffenthal. Photo: Wikimedia CC-BY-2.0
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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.

The newly endorsed investment products are the Protea Fund - Orcadia Global Sustainable Dynamic and the Tyrus Capital Investments - Tyrus Capital Global Convertible Fund. These funds have met the rigorous standards set by LuxFLAG and are recognized for their commitment to sustainability and responsible investing.

In addition to these two, LuxFlag said it has granted its Applicant Fund Status to three other funds, namely, the Autofocus Transition Climat Juillet 2023, the Federal Premium Horizon 2026, and the Chenavari Real Estate Decarbonisation Fund. These funds have shown potential for future LuxFlag labels and demonstrate their dedication to sustainable practices, the agency said.

LuxFLAG’s labelling initiative aims to make it easier for investors to identify and select products that meet strict environmental, social, and governance (ESG) criteria. The agency’s seal of approval intends to provide confidence to investors that the labeled products adhere to sustainable and responsible investment practices.

16 countries

Financial products with LuxFlag labels originate from a diverse range of jurisdictions, including Belgium, Denmark, Estonia, France, Finland, Germany, Ireland, Luxembourg, Monaco, Spain, and Switzerland. Over 110 financial institutions from 16 different countries are managing these products, underlining the global reach and appeal of sustainable investing.

LuxFlag labels are valid for a period of 12 months, and to maintain their status, funds must undergo a renewal process upon expiry. This periodic review ensures that products continue to meet LuxFlag’s sustainability standards, fostering a culture of continuous improvement and commitment to sustainable finance.

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