LuxFLAG expands its labelled investment products portfolio and updates the ESG Label’s eligibility criteria

LuxFLAG expands its labelled investment products portfolio and updates the ESG Label’s eligibility criteria

Press Release by LuxFLAG

Luxembourg, July 21, 2025 – In Q2 2025, LuxFLAG expands its labelled investment products portfolio and updates the ESG Label’s eligibility criteria for greater clarity and global reach

The Luxembourg Finance Labelling Agency (LuxFLAG) is pleased to announce that six new financial products have been granted the use of a LuxFLAG Label, for a total of 243 labelled investment and insurance products, representing €87.3 billion of AuM in Q2 2025.

The newly labelled financial products are*:

• Arkéa Euro Impact Infrastructure Transition Debt 2
• Arkéa Euro Core infrastructure Transition Debt 2
• Arkéa Exclusive Impact Infrastructure Debt
• CapitalatWork Equities Plus Sicav – Equities Plus At Work D
• ECBF I SCSp
• IVO Euro Flexible Short Duration SRI

*Please note that the list might not be exhaustive

The full list of LuxFLAG labelled investment and insurance products is available on LuxFLAG website.

These investment and insurance products are domiciled in six jurisdictions viz. Belgium, Estonia, France, Germany, Ireland, Luxembourg.

LuxFLAG Labels are awarded for a period of three (3) years and are due for renewal upon expiry.

ESG Label’s eligibility criteria update – enhancing clarity and global reach

In line with evolving market practices and stakeholder expectations, LuxFLAG has revised the eligibility criteria of its ESG Label. The updates aim to ensure continued robustness, international alignment, and improved accessibility for a broader range of financial products.

Key changes to the ESG Label’s eligibility criteria include:

Integration of the ESG Discretionary Mandate Label and its eligibility criteria:
The ESG Label now encompasses both investment products and discretionary mandates under a single, unified framework.

Refined terminology for exclusions and engagement:
To facilitate regulatory alignment (e.g. with Paris-Aligned Benchmarks), terminology has been clarified.

Engagement on ESG-related matters is encouraged in the following sectors, unless they fall under exclusion:
Coal*, Oil & Gas*, Electricity Generation*, Palm Oil, and Pesticides & GMOs.
(*Further details are available in the updated eligibility criteria.)

Removal of SFDR classification requirement:
Being classified as Article 8 or 9 as per the Sustainable Finance Disclosure Regulation (SFDR) is no longer a prerequisite for being eligible to the ESG label. This adjustment supports LuxFLAG’s global outreach.

Strengthened ESG due diligence requirement:
ESG due diligence must now be systematically integrated into the investment process for 100% of portfolio holdings.

Clarified instrument-level specifications:
A look-through approach applies to fund-of-fund structures.
Sovereign bonds, use-of-proceeds instruments, and sustainability-linked bonds must be supported by a documented framework.

Manager commitment to responsible investment:
Managers of labelled products are required to be signatories of recognized responsible investment frameworks (e.g. UN PRI).

The revised ESG Label criteria are effective immediately and will apply to all new and renewed applications. Full documentation is available on the LuxFLAG website.

Media enquiries:
Luxembourg Finance Labelling Agency (LuxFLAG)
communications@luxflag.org