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LuxFLAG ESG Discretionary Mandate

What stands behind the label?

LuxFLAG is an independent and international non-profit association launched in July 2006 in Luxembourg by seven public and private founding partners. LuxFLAG ESG Discretionary Mandate is one of a total of seven labels awarded by LuxFLAG.

The LuxFLAG ESG Discretionary Mandate Label (ESGDML) is for DM products that assist with the transition to mitigate and adapt to the climate crisis, as well as other environmental and social issues embedded in the United Nations Sustainable Development Goals.

What are the key points of the label?
Key points
Disclosure of the sustainability criteria for the award of the label

The product to be awarded must be classified as an Article 8 or Article 9 financial product in the meaning of the Sustainable Finance Disclosure Regulation (“SFDR”). It must have 100% of the portfolio selected on the basis of an ESG screening including its underlying invested assets, and it must comply with LuxFLAG’s ESG Label Exclusion Policy, including underlying invested assets.

Key points
Independence of the organization awarding the label

LUXEMBOURG FINANCE LABELLING AGENCY (LuxFLAG) is an independent and international non-profit association.

Key points
Multiple-step process when the label is awarded by a number of parties

The ESG Discretionary Mandate Label Eligibility Committee (ESGDMLEC) consists of four members from the private and public sectors who decide on the applications. In addition, there are other LuxFlag management boards that must sign off on the listing. LuxFLAG uses only a one-step process consisting of a suitability check.

Which financial products are evaluated with it?

The label applies to discretionary standard mandates for High Net Worth clients, not tailored/custom mandates. In 2024, 23 discretionary mandates from seven institutions have been awarded with the label. Click on the button to access the website and discover the financial products awarded with the label.

Source: LuxFLAG a.s.b.l.