On Wednesday 12 February 2025, Luxembourg Finance Labelling Agency (LuxFLAG) announced the launch of its newest label, the Social Impact Label, to promote measurable positive impact through investments.
In a statement, the agency said the new label was designed to recognise investment products that strategically contribute to positive, measured and managed social outcomes. It added that it reflected LuxFLAG’s mission to advance responsible finance and aligned with its commitment to fostering social and inclusive investments globally.
According to LuxFLAG, the key features of the Social Impact Label are:
- Contribution to Social Impact: recognises investments with most assets aligned to foster decent work, improve living standards, and support inclusive and sustainable
communities, while avoiding or mitigating negative impact;
- Thematic alignment: assets are selected based on their contribution to key Social Impact Themes, supported by methodologies and indicators ensuring positive impact;
- Transparency: social impact measurement and reporting adhere to globally recognised frameworks and standards, ensuring clear communication with stakeholders;
- Robust due diligence: comprehensive social safeguards and exclusionary criteria ensure investments meet the highest ethical standards.
This label is reported to be a significant step forward in recognising and supporting investments that go beyond financial returns to make a tangible difference in people’s lives.
Isabelle Delas, Chief Executive Officer of LuxFLAG, stated: “At LuxFLAG, we believe that responsible finance has the power to transform communities and lives. The Social Impact Label underscores our commitment to positive, measured and managed change in the world”.
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