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