Sustainable and Responsible Investment
Responsible and Sustainable Investment allows you to give meaning to your portfolio without sacrificing potential growth. You combine financial returns with a social and environmental contribution.
How does the Bank put Responsible and Sustainable Investment criteria into practice?
Give meaning to your investments by encouraging good practices and sustainable development models.
Application of Environmental, Social and Governance (ESG) criteria
Financial criteria alone are no longer enough to assess a company. Environmental, Social and Governance (ESG) criteria are the three pillars of its non-financial analysis.
Creating value for your wealth and for society
We strive to do business in a considerate and responsible way with regards to our clients, employees, shareholders and the community - and this is reflected in our investment solutions.
When you choose the socially responsible funds mandate, you are opting for a comprehensive wealth management solution that allocates your assets across various financial instruments that comply with Environmental, Social and Governance (ESG) criteria.
ESG criteria
Environmental
Waste management, reduction of greenhouse gas emissions, environmental risk prevention, etc.
Social
Accident prevention, staff training, respect for employee rights, the subcontracting chain, social dialogue, etc.
Governance
Independence of members of the board of directors, the management structure, the existence of an audit committee, etc.
From sustainable
development to
responsible
& sustainable investment
- Sustainable Development Goals (SDGs)
- Principles for Responsible Investment (PRIs)
types of investment
- Traditional investments
- Responsible investments
- Sustainable investments
- Impact investments
investing
- Exclusion
- ESG integration
investment
- European policy for sustainable finance
- Focus on the SFDR regulation
- Focus on the Taxonomy
Characteristics of impact investing:
- Additionality
- Intentionality
- Measurability
CSR, ESG, SRI, SDGs: where to start?
Test your knowledge
On:
environmental, social and governance (ESG) issues
Estimated time for the quiz: 2 minutes
What does it mean?
Did you know?
The first official appearance of the acronym ESG (environmental, social, governance) was in a study by the International Finance Corporation.
Did you know?
In the ESG area, the social criteria relates to themes such as diversity and inclusion, gender equality, the right to education and the right to work.
Did you know?
In the ESG area, the governance criteria relates to the overall management of a company, its transparency, management risk and the diversity of its board of directors.
Did you know?
A green bond is a debt security issued on a market and intended to finance projects to combat global warming and to support the energy transition. With over 660 listed green bonds in June 2022, Luxembourg is one of leading financial markets for this asset class.
Did you know?
Sustainable investment – Assessment criteria
| 1 | Positive contribution | An investment in an economic activity that contributes to an environmental objective or that contributes to a social objective |
| 2 | DNSH | providing these investments do no significant harm (DNSH) to any of these objectives |
| 3 | Minimum safeguards | and that the companies in which investments are made apply good governance practices. |
Did you know?
Rising steadily for over 10 years, assets under management in SRI funds in Europe reached close to EUR 2 trillion in June 2021, more or less 24% of the total assets of funds distributed in Europe.
Did you know?
There are various methods for investing responsibly, by combining a variety of characteristics. The most widespread are:
- Exclusions, i.e. not investing in companies generating revenue in sectors or products that are considered harmful for the environment or that place insufficient value on human rights.
- Best in class means investing in companies that are among the best in their category based on analysis of their ESG data.
Did you know?
The principle of carbon neutrality is based on a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks. To achieve net zero emissions, all greenhouse gas emissions must be offset by carbon sequestration.When unveiling its Green Deal for Europe in 2019, the European Union made a commitment to achieve carbon neutrality by 2050. The European Climate Law establishes the framework for achieving climate neutrality in the European Union as a legal obligation.
Almost!
Of course you’ve still some way to go. But thankfully, there are resources available to help improve your understanding of responsible investment!
Congratulations!
You’re already well acquainted with responsible investment and have a sound basis for understanding the characteristics of responsible investment products.
Congratulations!
You’re familiar with the major issues underpinning sustainable finance and the overriding characteristics of the various types of responsible investments!
Policy for integrating ESG factors into management mandates
Did you know that our socially responsible fund management mandate has been granted the LuxFLAG label? This label is used to highlight the sustainable development accreditation of the most ambitious investment products in terms of sustainability.
Our management company is also committed
In July 2017, BLI – Banque de Luxembourg Investments signed the United Nations Principles for Responsible Investment (UN PRI). This was followed by the creation of an internal ESG committee and the implementation of an environmental, social and governance (ESG) policy.
For more information
