Sustainable investing standards
A number of standards exist to aid investors in evaluating and differentiating between financial products described as sustainable:
- Febelfin Quality Standard and Label
- FNG-Label for Sustainable Mutual Funds
- FNG Sustainability Profiles and Transparency Matrix
- Luxflag ESG label
- Nordic Swan Ecolabel for Investment Funds
- Greenfin Label
- Label ISR
Febelfin Quality Standard and Label
The Belgian Financial Sector Federation (Febelfin) developed a quality standard for sustainable financial products, with a floor (minimum norm) for all such products, and a corresponding label. All distributors and managers, domestic and foreign, of socially responsible or sustainable financial products can apply for the label.
FNG-Label for Sustainable Mutual Funds
The FNG Label guarantees that, as a minimum requirement, the exclusion criteria of nuclear power and armaments are applied and the four areas of the UN Global Compact, i.e. human rights, labour, environment and anti-corruption, are taken into consideration. The FNG quality standard also requires that transparency and process criteria be met. FNG and its subsidiary, Gesellschaft für Qualitätssicherung Nachhaltiger Geldanlagen (GNG), first awarded the label to 34 funds from German-speaking regions on 8 December 2015.
FNG Sustainability Profiles and Transparency Matrix
Forum Nachhaltige Geldanlagen e.V. (FNG) launched a (transparency) matrix as well as sustainability profiles for funds. FNG Sustainability Profiles and the FNG Matrix are guidance tools to assist investors in the selection of sustainable mutual funds. Both tools help investors and financial advisors to obtain an overview of the sustainability strategies used. This information is supplemented by general key fund data. Currently, the matrix and profiles contain over one hundred funds.
Luxflag ESG label
LuxFLAG (Luxembourg Finance Labelling Agency) is an independent and international non-profit association created in Luxembourg in July 2006 by seven public and private founding partners. The agency aims to promote the raising of capital for the Responsible Investment sector by awarding a recognisable label to eligible investment vehicles amongst others. The labels' objective is to reassure investors that the applicant invests in the Responsible Investment sector.
As of September 2019, LuxFLAG labels 158 investment products domiciliated in 5 jurisdictions (Belgium, France, Germany, Ireland and Luxembourg) and managed by 63 Asset Managers in about 14 countries including Switzerland. In addition, the agency offers 5 different labels (each with specific high standards criteria): Microfinance, Environment, ESG, Climate Finance and Green Bond.
Nordic Swan Ecolabel for Investment Funds
The Nordic Swan Ecolabel is the official ecolabel of the Nordic countries. As of June 2017, the Nordic Swan Ecolabel also has criteria for investment funds, and as of December 2019, 32 funds from all over the Nordics have been awarded the label.
GreenFin Label
The French Greenfin Label certifies that funds are environmentally beneficial and that their 'green' objectives are clearly explained. Launched in 2013 by the French government, it is the first initiative of its kind in France. It has been awarded to 45 funds as of April 2020.
Label ISR
The French SRI label (Label ISR) is a tool for choosing sustainable and responsible investments. Created and supported by the Finance Ministry in 2016, the label goal is to increase the visibility of SRI products among savers in France and Europe and as of July 2020 has labelled 476 funds.
