Our labels

Impact Label

Our Impact Label

Our Impact Label aims at rewarding Applicants whose mission is to invest in assets that support specific impact themes: microfinance/inclusive finance, social themes or climate and nature themes.

This category brings together our labels dedicated to tangible impact areas, and includes:

- LuxFLAG Microfinance Label (launched July 2006)
- LuxFLAG Environment Label (launched July 2011)
- LuxFLAG Climate Finance Label (launched Sept 2016)
- LuxFLAG Social Impact Label (launched Feb 2025)

Microfinance

The Label was created in 2006 with the establishment of LuxFLAG and launched the world’s only Microfinance Label. It is historically the first Label created by LuxFLAG for its high standards and comprehensive evaluation of the microfinance investment funds’ approach. It underscores the effective integration of social performance considerations and financial inclusion principles, reflecting key criteria essential to the LuxFLAG Microfinance Label’s eligibility criteria. This Label is the only one to allow a tax exemption to the Labelled Product or Services as per Luxembourg Law.

Main Eligibility Criteria:
– ≥70% of portfolio in microfinance / inclusive finance

Exclusion Characteristics:
– Enhanced IFC Exclusion Policy

Other Specificity:
– Facilitate access to finance for low-income households (LIH) and small enterprises via direct or indirect investments

Eligibility Criteria Label Subscription Form GDR Exoneration Taxe d'Abonnement

Environment

Main Eligibility Criteria:
– ≥75% of portfolio in environment-related sectors

Exclusion Characteristics:
– Detailed list of activities harming the environment

Other Specificity:
– Turnover in environment-related sectors shall correspond to at least 20% of the company’s total turnover

Eligibility Criteria Label Subscription Form

Climate Finance

Main Eligibility Criteria:
– ≥75% of portfolio in investments related, with a clear and direct link, to mitigation and/or adaptation of climate change or cross-cutting activities

Exclusion Characteristics:
– Detailed list of activities harming the climate

Other Specificity:
– Have a measurement mechanism in place and must provide a report on expected and realized results through indicators on an annual basis

Eligibility Criteria Label Subscription Form

Social Impact

Main Eligibility Criteria:
– Social impact strategy covering ≥50% of portfolio

Exclusion Characteristics:
– Enhanced IFC Exclusion Policy

Other Specificities:
Contribution to at least one Social Impact theme:
– Decent work
– Adequate living standards and wellbeing, and/or
– Inclusive & sustainable communities

Eligibility Criteria Label Subscription Form

Labelled Impact Products