Knowledge sharing

Welcome to LuxFLAG’s knowledge sharing page. Here you can find all recent information and publications related to impact and sustainable finance.

What is Sustainable Finance?

‘Sustainable finance’ generally refers to the process of taking due account of environmental and social considerations when making investment decisions, leading to increased investment in longer-term and sustainable activities. (Source: European Commission)

Impact investing vs ESG investing?

There are various definitions of impact investing – most of the time understood as “investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return”. These investments could be typically made in any of the 17 sustainable development goals (water, food security, health and well-being, education, financial inclusion, future mobility, circular economy, energy transition, and impact enablers).

This is different from ESG, which focuses on integrating Environmental, Social and Governance factors into the investment process in order to make informed decisions. “ESG investing” is therefore investing in companies with good ESG practices.

Impact investing focuses on a company’s activity or services whereas ESG focuses more on how a company operates.

Impact investing

is an exciting and rapidly growing industry powered by investors who are determined to generate social and environmental impact as well as financial returns. This is taking place all over the world, and across all asset classes. (Source: The GIIN)
ESG

Environmental, social and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.
Climate finance

refers to local, national or transnational financing—drawn from public, private and alternative sources of financing—that seeks to support mitigation and adaptation actions that will address climate change. (Source: United Nations Climate Change)

Differences between SFDR and the LUXFLAG Label

The distinction of financial products amongst Article 6, 8 or 9 products within the meaning of the Sustainable Finance Disclosure Regulation (hereinafter “SFDR”) has resulted in a misconception in the market that the aforementioned categorization is equivalent to a labelling scheme. Below are the key differences between the LuxFLAG Label and the SFDR.

Sustainable thinking-Thought Leader Articles

Welcome to our dedicated section for Thought Leader Articles, your go-to source for insightful perspectives on sustainable finance related topics.

Here we feature in-depth articles penned by industry and LuxFLAG experts who are at the forefront of driving change in the financial sector.

Our Thought Leader collection

In this collection, over time you will find a wealth of knowledge on various aspects of sustainable finance, including but not limited to ESG (Environmental, Social, and Governance), impact investing, special topics such as blue economy and the latest trends and innovations in sustainable finance practices. Each article is crafted to provide you with valuable insights, expert analysis, and practical guidance to help you navigate the evolving landscape of sustainable finance.

The Crucial Role of Biodiversity in Sustaining Life and Economies

Biodiversity is the cornerstone of life on Earth, nurturing ecosystems that are vital for environmental resilience and economic well-being. Yet, the rapid decline in species, genetic diversity, and ecological richness threatens to destabilize these essential systems. This pressing challenge highlights the need for urgent action to protect and restore biodiversity—a mission with profound benefits for both the planet and the global economy.

Charting the blue frontier: Harnessing the ocean's potential for a sustainable future

As the world grapples with the dual challenges of economic growth and environmental sustainability, the Blue Economy is emerging as a beacon of hope. This blossoming sector encompasses a wide range of activities linked to oceans, seas, and coastal regions. From traditional industries like fishing and maritime transport to cutting-edge sectors like marine biotechnology and offshore renewable energy, the Blue Economy offers a vast potential for sustainable development.

The collaborative revolution

In today's fast-paced world, where the stakes of climate change, biodiversity loss, and social inequality are higher than ever, traditional paradigms of finance are being challenged. The need for transformative action has never been more urgent. Welcome to a new era of finance - one where collaboration and innovation reign supreme in shaping a resilient future for generations to come.

Videos

Video Playlist

1/11 videos

1

LuxFLAG: Pioneering Sustainable Finance Globally

LuxFLAG: Pioneering Sustainable Finance Globally

2

LuxFLAG and its labels in a nutshell

LuxFLAG and its labels in a nutshell

3

Extension to 3-year label cycle

Extension to 3-year label cycle

4

Enhancing impact - LuxFLAG Microfinance Label

Enhancing impact - LuxFLAG Microfinance Label

5

How to enhance your ESG strategy with the LuxFLAG ESG Label

How to enhance your ESG strategy with the LuxFLAG ESG Label

6

Elevating sustainable standards in insurance products

Elevating sustainable standards in insurance products

7

Your guide to acquiring the LuxFLAG ESG Discretionary Mandate Label

Your guide to acquiring the LuxFLAG ESG Discretionary Mandate Label

8

ESG Data Life Cycle from Companies to Asset Managers

ESG Data Life Cycle from Companies to Asset Managers

9

SFDR in the spotlight - hosted by GSK Stockmann

SFDR in the spotlight - hosted by GSK Stockmann

10

SFDR in the spotlight - hosted by Linklaters

SFDR in the spotlight - hosted by Linklaters

11

SFDR in the spotlight - hosted by Arendt & Medernach

SFDR in the spotlight - hosted by Arendt & Medernach

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