Sustainability has become a big deal to the asset management industry, with its compelling story attracting investors. While this comes as an advantage for some, it has also created challenges.

Over a short period, more than 50% of global companies are reporting on their sustainability, including their performance related to Environment, Social and Governance (ESG) factors.

In Europe, the EU Non-financial Reporting Directive (NFR Directive) requires large public companies and financial corporations operating in Europe to disclose information on the following matters:

• • environmental
  • social
  • human rights
  • anti-corruption.

These factors are required to understand the company’s development, performance, position and impact.

In the asset management industry, sustainability is trending. There has been a significant increase of signatories for the Principle for Responsible Investing (PRI) and the UN Global Compact initiatives. This is driven by increased investor demand and recent regulatory developments.

However, does all this prove that ESG is influencing investment decisions? And is publishing an annual sustainability and impact report enough?

Investors are increasingly factoring ESG in their investment decisions to identify risks and opportunities that can pass traditional analysis by. This, in turn, requires more useful data on material issues that are strategically important to the company. ESG elements must be linked to the organizational strategy, risk management and context in which the company operates.

For example, a financial services company that openly reports on its operational policies, labor practices, diversity and consumer protection policies is considered more material than its use of environmental resources.

The industry currently faces challenges around reliable ESG data. This is mainly due to a lack of transparent framework and little to no correlation between the ESG ratings produced by service providers. Today, the market recognizes the following frameworks for sustainability reporting:

• • Carbon Disclosure Project (CDP)
  • Global Reporting Initiative (GRI)
  • Task Force on Climate-Related Financial Disclosures (TCFD)
  • Sustainability Accounting Standards Board (SASB).

The industry eagerly awaits the EU Commission’s common taxonomy framework, which is expected to be released in the coming months.

Sustainability labels, like the one offered by the Luxembourg Finance Labelling Agency (LuxFLAG), are awarded based on predefined eligibility criteria. These awards play a vital role in helping investors separate the wheat from the chaff.

Despite the challenges around sanity of data and a common framework, growth trends continue to signal that ESG is here to stay. The asset management industry must treat sustainability factors not as optional, but as essential, to boost its communication efforts.

 

Sachin Vankalas, General Manager, LuxFLAG

LuxFLAG is pleased to announce that registration is open for #LSIW19.

LuxFLAG Sustainable Investment Week 2019:

• 15 Standalone Events covering topics such as Climate Finance, ESG, Sustainable Finance.
• Green Event
• No entrance fee

Register here

 

AN UPDATE FROM LUXFLAG’S ASSOCIATE MEMBER GSK STOCKMANN
This paper reports on the current status, assessment and outlook regarding Sustainable Finance.

Executive Summary:

• The intention is to strengthen the financial sector by considering environmental, social and governance (“ESG”) factors in investment decisions.
• The EU Commission’s “Action Plan on Sustainable Finance” will bring changes of the Level 2 and Level 3 measures of MiFID II, IDD, the UCITS Directive and the AIFMD.
• Extensive disclosure obligations for almost all stakeholders in the financial sector.
• Financial market participants are required to make extensive adjustments to their corporate governance, particularly with regard to risk management requirements.
• Sales processes for financial instruments and insurance products must be examined: there are plans for new requirements for target market determination, suitability tests and suitability declaration.
• Final measures will be implemented as early as in Q3 2019.

Read more here

Reports to: General Manager
Place of work: Kirchberg, Luxembourg
Vacancy type: Full time
Contract type: CDI
Starting date: as soon as possible
Salary: Competitive plus benefits

About LuxFLAG:

LuxFLAG, the Luxembourg Finance Labelling Agency, is an independent and international, non-profit organization created in Luxembourg in July 2006 jointly by public and private partners. LuxFLAG aims to promote the raising of capital for the Sustainable Finance sector by awarding a recognizable label to eligible investment vehicles in Climate Finance, ESG (Environment, Social, and Governance), Environment, Microfinance, and Green bonds. The LuxFLAG Labels are recognized for their high standards and rigorous assessment of applicant investment Vehicles’s investment holdings, strategy and procedures with respect to ESG matters as well as an affirmation of their transparency to investors – which are key components of the eligibility criteria for the LuxFLAG labels. As of June 2019, LuxFLAG Labels 136 products representing 5 jurisdictions where the labelled products are domiciled and 15 countries where the investment managers are located.

The Role

We are looking for a motivated team player to support our communications and stakeholder relationship activities.  Reporting to the LuxFLAG General Manager, and working closely with LuxFLAG’s wider team, you will be responsible for co-ordinating marketing and communications for LuxFLAG, as well as undertaking stakeholder relationship activities with LuxFLAG’s labelled investment vehicles and Associate Members. The role will involve working closely with management in order to identify sector and agency priorities in terms of communications and client relationships.

Main tasks

• Implement marketing and communications strategy
• Organise and manage LuxFLAG’s stakeholder relationships
• Prepare monthly/quarterly communication material, corporate presentations, other promotional visuals, technical papers with the support of the operational team
• Organise and manage member events
• Ensure LuxFLAG’s active presence in social media and industry events
• Assist General Manager in implementing LuxFLAG’s promotion strategy

Skills and capabilities:

Essential

• At least 3 years’ experience of working in multi stakeholder organisations
• Excellent writing skills
• Strong interpersonal and verbal communication skills
• Strong project management, organisational and time management skills, with proven ability to prioritise
• High levels of accuracy and attention to detail
• Self-motivated, flexible and disciplined
• Enthusiastic and positive approach
• Fluent in routine IT tools including Word and PowerPoint
• Fluency in English and French – spoken + written

Desirable

Experience in one or more of the following sectors: CSR, Sustainable Finance, Sustainability

• Expertise in graphics, creative designing skills, digital marketing, social media
• Fluency in Luxembourgish and German

Applications

Closing date for applications: 15 September 2019

Interested applicants should submit a Curriculum Vitae and a cover letter detailing their qualifications and experience for the role to Sachin.vankalas@luxflag.org

Applicants must be eligible to work in Luxembourg. Only shortlisted candidates will be notified.

For the past 16 years, DPAM have been building their sustainability processes and expertise. With the structural trend of incorporating ESG factors into management, sustainable and responsible investments are gaining ground. One can say that today sustainable and responsible investment are here to stay. In this context, DPAM are convinced that investors deserve in-depth answers to questions such as: How to prepare for regulation? How to make a portfolio sustainable? How to implement it? What about proxy voting and shareholder engagement?

To answer all these questions and leveraging from their learning curve in the topic, DPAM have created the Sustainability Knowledge Centre, an educational program designed to capture the ins and outs of sustainable investments in a to the point way. The purpose of this program is to share knowledge and expertise and to make the reader familiar with the various concepts, terminology and notions.

For further information, click here.

The 2019 Asian Infrastructure Investment Bank Annual Meeting took place in Luxembourg in the presence of HRH Grand Duke of Luxembourg, President of the Luxembourg Parliament, Fernand Etgen, Luxembourg Prime Minister Xavier Bettel and Luxembourg Minister of Finance and Chairman of the Board of Governors for the 2019 Annual Meeting, Pierre Gramegna. AIIB President Jin Liqun set out the Bank’s commitment to drive the green economy through sustainable, adaptable and innovative infrastructure investment.

Sachin Vankalas, the General Manager of LuxFLAG, particpated in a panel discussion at the AIIB Annual Meeting on the 12th of July 2019 at the European Convention Centre in Luxembourg.

The topic discussed was about improving ESG Performance in Infrastructure. Sachin indicated that ESG is not a number but a breathing process to encourage tangible change.

The LuxFLAG Team were also exhibitors at the event, where they promoted the activities and achievements of LuxFLAG.

Sachin Vankalas, General Manager of LuxFLAG, took part as a panel moderator at the 2nd Sustainable Finance Forum organised by Luxembourg for Finance on 26th June 2019. Marie Laure Schaufelberger (Pictet Group), Ophélie Mortier (Degroof Petercam), Véronique Schapplow (M&G Investments) participated as speakers.

Impact and ESG investments are two sides of one coin in the quest for sustainable investments. ESG investing strives for a better finance which is open to a broad audience and assembles large investment tickets. Impact investments are today mainly available for well-informed investors who aim to create tangible impact. Which model will be more persuasive for the retail and institutional market in the future? How much additional impact can listed companies really create? Or is true impact only possible through project finance? The session explored through concrete case studies how both worlds might together add up in a future-proof equation.

LuxFLAG is pleased to announce that as of 20 June 2019, it has granted the LuxFLAG Label to 136 financial products domiciled in five jurisdictions and managed by asset managers from fifteen countries.

These five jurisdictions are:

 

The complete list of LuxFLAG labelled products are available on:

List of labelled Microfinance Investment Vehicles

List of labelled Environment Investment Vehicles

List of labelled ESG Investment Vehicles

List of labelled Climate Finance Investment Vehicles

List of labelled Green Bonds