Climate Finance Label

Glossary

  • Applicant Investment Fund: an investment fund that chooses to apply for the Climate Finance Label (first time application or application for the renewal of the Label)

  • Application form: the form that supports the application by an Applicant Investment Fund for the LuxFLAG ESG Label, as attached in Appendix

  • Application file: the entire file that comprises the application form, certain documents to be attached to the application file and the detailed questionnaire

  • CFIV: Climate finance investment vehicle

  • Climate change adaptation finance: Adaptation finance regroups “activities that address current and expected effects of climate change” (Common Principles for Climate Change Adaptation Finance and Tracking).

  • Climate change mitigation finance: An activity will be classified as related to climate change mitigation if it promotes “efforts to reduce or limit greenhouse gas (GHG) emissions or enhance GHG sequestration” (Common Principles for Climate Change Mitigation Finance and Tracking).

  • ESG: Environment, Social, Governance

  • Investment Fund: for the purpose of the Climate Finance Label, investment fund is meant to include traditional undertakings for collective investment, whether corporate or contractual in form, and undertakings or entities that may be structured in a similar manner to undertakings for collective investments, such as entities specialised in risk capital

  • Labelled Investment Fund: an investment fund that has been granted the Climate Finance Label

  • LuxFLAG: Created in July 2006, the Luxembourg Finance Labelling Agency (LuxFLAG) is an independent not for profit agency that supports sustainable finance by providing clarity for investors through awarding Labels to applicant investment funds which meet specific published criteria

  • LuxFLAG’s Eligibility Committee: the LuxFLAG body that reviews the application files and that recommends to the LuxFLAG Board of Directors whether the applicant investment fund may be granted the right to use the Climate Finance Label

  • LuxFLAG Climate Finance Label:  the Label that LuxFLAG may grant to Applicant Investment Funds that meet all of the Climate Finance Label Eligibility Criteria

  • LuxFLAG Climate Finance Label Eligibility Criteria:  the specific published criteria as defined by LuxFLAG that an Applicant Investment Fund must comply with in order to obtain the Climate Finance Label

  • NDA: Non-disclosure agreement

  • Pre-questionnaire: a questionnaire to be completed by an applicant investment fund that may help the Applicant Investment Fund to assess whether it may be eligible for the Climate Finance Label.

  • SDG: Sustainable Development Goals, a UN initiative defining 17 goals and 169 targets as part of the 2030 Agenda for Sustainable Development