3 Luxembourg Banks Receive New LuxFLAG ESG Discretionary Mandate Label

The Luxembourg Finance Labelling Agency (LuxFLAG) has announced that it recently granted the LuxFLAG ESG Discretionary Mandate (ESGDM) Label for the first time to applicants from three local institutions.

The following institutions have received the LuxFLAG ESGDM Label:

• BGL BNP Paribas for Responsible Investment Mandate – Balanced, Responsible Investment Mandate – Conservative and Responsible Investment Mandate – Dynamic;

• Banque Raiffeisen for R-Gestion Sustainable; 

• Banque et Caisse d'Epargne de l'Etat (Spuerkeess) for ActivMandate Green – Balanced, ActivMandate Green – Growth and ActivMandate Green – Offensive.

The LuxFLAG ESGDM Label is granted to eligible discretionary mandates that are enabling the transition toward a more sustainable economy.

LuxFLAG defined the following key features of the eligibility criteria for an applicant discretionary mandate:

• concern an Article 8 or Article 9 financial product in the meaning of the Sustainable Finance Disclosure Regulation (SFDR);

• 100% of the portfolio selected on the basis of an environmental, social and governance (ESG) screening, including any underlying invested assets;

• comply with the LuxFLAG's ESG Exclusion Policy which excludes specific controversial sectors.

Isabelle Delas, CEO of LuxFLAG, commented: "We have launched in September 2022 our seventh label, dedicated to ESG Discretionary Mandates. It is the first sustainability label of this kind in Europe, developed in close cooperation with the Luxembourg banking industry. It applies to standard mandates for high net worth clients, not tailored/custom mandates. We are confident that this new label will further boost the sustainability transition, by adding a new layer of ESG review to a significant financial product in Luxembourg and also available for equivalent international jurisdictions. We are pleased to grant this new label for the first time to mandates from BGL, Raiffeisen and Spuerkeess."

LuxFLAG labels are valid for a period of twelve months and are subject to renewal on expiry.