Eligibility Criteria

APPLICANT FUND STATUS

LuxFLAG’s Applicant Fund Status is available for newly launched funds in their initial subscription phase, showcasing their commitment to responsible investing principles. The Applicant Fund must commit to apply for a LuxFLAG Fund Label once eligible. Read more on the Applicant Fund Status

LABEL APPLICATION

In order to obtain the LuxFLAG Climate Finance Label, a fund must comply with the following Eligibility Criteria set by LuxFLAG. The principal conditions are that the Applicant Investment Fund must:

75%

Have a portfolio of investments corresponding to 75% of total assets in investments related, with a clear and direct link, to mitigation and/or adaptation of climate change or cross-cutting activities

Describe its Climate Finance objectives (environmental and financial) and be transparent towards investors in its portfolio composition and documentation

Comply with some legal and governance criteria

Seek a return on investment

Provide evidence that Environmental, Social and Governance (ESG) standards are incorporated in the investment process

Have a measurement mechanism in place and must provide a report on expected and realized results through indicators on an annual basis

Provide evidence that an exclusion policy is applied across 100% of its portfolio

Be authorized by a EU Member State or be subject to supervision equivalent to that in EU Member States

LuxFLAG will engage an Audit firm for the completion of certain Agreed Upon Procedures, enabling the Audit firm to examine the report of LuxFLAG upon information provided by the Applicant Investment Fund.

LuxFLAG reserves the right to independently assess and evaluate the Applicant Investment Fund’s compliance with the above Eligibility Criteria and pertinence of the exclusion policy decided and applied by the fund.

A full description of the eligibility criteria is available in the Eligibility Criteria document.