LuxFLAG accepts and reviews applications on a first-come, first-served basis.
Applicant investment funds will receive an acknowledgement by e-mail within ten business days of receipt. Applications will be reviewed and any additional information solicited if necessary. The applicant investment fund has to make a Tripartite Agreement with an authorised Auditor by LuxFLAG. When the application is complete, it is presented together with the report from the Auditor to the Environment Label Eligibility Committee of LuxFLAG for analysis.
Based on this analysis, the Board of LuxFLAG will approve or reject the application.
If the application is complete and accurate, the process should take no longer than one month. A written notification of the decision will then be sent to the applicant investment fund.
Successful applicantinvestment fund will be required to pay a fee of Euro 3,000 per entity plus EUR 500 for the second and subsequent sub-funds up to a maximum of 5 sub-funds and to sign a set of Terms and Conditions relating to the use of the LuxFLAG Environment Label. Additionally, the successful applicant investment fund will be required to pay upfront variable Auditor fees.
The LuxFLAG Environment Label is granted for a period of one year and must be renewed. To this end LuxFLAG will issue the Investment Fund with an invitation to submit an updated application document before the expiry of its Label.
ELIGIBILITY CRITERIA
In order to obtain a LuxFLAG Environment Label, an applicant investment fund must comply with the following eligibility criteria set by LuxFLAG. The principal conditions are that the applicant investment fund must:
Have a portfolio of investments in environment-related sectors corresponding to at least 75% of the fund's total assets;
Screen all of its investments and potential investments on their management of Environmental, Social and Governance (ESG) responsibilities;
Seek a return on investment;
Comply with the legal and governance criteria of LuxFLAG;
Must be subject toeither supervisionin EU member state or supervision equivalent to that in EU Member States;
A full description of the eligibility criteria is available in the Eligibility criteria document. LuxFLAG reserves the right to independently assess and evaluate the above mentioned eligibility criteria.
PROCEDURE
The procedure for application and granting of the LuxFLAG Environment Label is as follows:
Step l:
Applicant investment funds wishing to apply for the LuxFLAG Environment Label should first complete a pre-questionnaire which is designed to help them avoid unnecessary time and expense in assessing whether or not they may be eligible for the label. Should one or more response to the questions listed be negative, it is recommended that before proceeding further, the Fund should contact LuxFLAG to obtain further information as regards a potential application.
Step ll:
The applicant investment Fund must complete and sign an Application Form and return it to LuxFLAG together with a series of documents in hard copy or electronic format. These documents are:
The Statutes or Articles of Incorporation of the investment vehicle
The latest audited financial statements ( including the report of the auditor)
The un-audited semi-annual financial statements ( if more recent than the audited financial statements)
A full list of assets of the applicant investment fund (if not included in the financial statements) together with the evidence that at least 75% of the assets are invested in Environment related sectors
The offering/ marketing documents that describe if and how non-financial performance is managed by the applicant investment fund
