Our labels

Impact Label

Our Impact Label

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

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)

*Now Climate and Nature Label

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

Climate and Nature

The Climate and Nature focus was established in December 2025. It is granted from Q1 2026 while the former Climate Finance and Environment Label holders will benefit from a transition period until 31st December 2026.

The Climate & Nature focus is suitable for financial products and services investing in sectors and activities contributing to climate and/or other environmental outcomes.

Main Eligibility Criteria:
– Investment strategy targeting a positive, measurable and actively managed impact
– ≥70% of assets (excluding cash) invested in activities contributing to Climate & Nature and/or Social Themes, supported by a robust impact measurement and management framework
– ESG due diligence applied to 100% of investments (excluding cash)
– Possibility of classification under a specific focus (e.g. Climate & Nature or Social), depending on portfolio composition

Exclusion Characteristics:
– Exclusion policy aligned with international standards, covering controversial behaviour, jurisdictions and weapons
– Additional exclusions applied in line with the investment strategy and thematic focus

Other Specificity:
– Impact contribution assessed in-house and/or externally using recognized methodologies
– Consideration and mitigation of potential adverse environmental and social impact
– Engagement approach applied to investments in high-sustainability risk sectors

Eligibility Criteria Label Subscription Form

Social Impact

The Social Impact focus was established in February 2025 and is suitable for financial products and services investing in sectors and activities contributing to at least one Social Impact themes.