POLITICS & INSTITUTIONS - ECONOMY

LuxFLAG launches environmental label



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 Julien Becker

Sustainable and responsible investing (SRI): Luxembourg’s fund labeling agency launched its second investment fund label Monday afternoon.

LuxFLAG’s new Environmental Label is granted to funds that can prove more than 75 percent of their assets are invested in environment-related sectors. “It is designed to reassure investors that labelled investment funds actually invest the majority of their assets in environment-related sectors in a responsible manner,” it said in a statement.

LuxFLAG introduced its Mircrofinance Label in January 2007. Both Luxembourg and foreign-domiciled funds are eligible for the agency’s certifications, according to the agency’s chief, Daniel Dax (photo).

Luxembourg is no stranger to the social investing category. Research firm Lipper, which is part of Thomson Reuters, reports that 86 percent of European SRI assets were managed by Luxembourg funds in 2009. Last year, four of the top five performers among large European SRI funds were domiciled in the Grand Duchy, reckons Lipper.

www.luxflag.org