The ESG Discretionary Mandate Label (ESGDM) is the seventh one created and offered by the Luxembourg Finance Labelling Agency (LuxFLAG).
Launched in September 2022, the label is given to discretionary mandates that enable the transition towards a more sustainable economy and which meet other criteria. It has now been given for the first time, said LuxFLAG in a press release from 19 January, to three companies: BGL BNP Paribas, Raiffeisen and Spuerkeess.
“[This] is the first sustainability label of this kind in Europe, developed in close cooperation with the Luxembourg banking industry,” said LuxFLAG CEO Isabelle Delas in the press release, adding that it applies not to tailored or custom mandates but to standard mandates for high net worth clients.
“We are confident that this new label will further boost the sustainability transition,” she added, “by adding a new layer of ESG review to a significant financial product in Luxembourg and also available for equivalent international jurisdictions.”
To qualify for the ESGDM label, a mandate must concern an article 8 or 9 financial product (in the parlance of the Sustainable Finance Disclosure Regulation or SFDR); its portfolio must be selected entirely on the basis of an ESG screening (including underlying invested assets); and it must comply with LuxFLAG’s ESG exclusion policy, under which certain sectors such as nuclear energy, tobacco and controversial weapons are excluded.