LuxFLAG has granted Europe’s first Green Bond labels to 18 Climate Awareness bonds issued by the European Investment Bank.
The funds are used to disburse money to EIB projects focused on climate change, in areas such as renewable energy – wind, hydro, solar, geothermal energy production – and energy effiency – district heating, co-generation, insulation, energy loss reduction in transmission and distribution. The labels are valid for the lifecycle of the bonds, LuxFLAG said*.
The Luxembourg Finance labelling agency launched its Green Bond label in June 2017. It aims to provide assessment of eligible instruments that finance green projects, to avoid so-called ‘free riding’ and “strengthen environmental integrity in the market” to help build investor confidence that the issuers of the instruments will do what they say.
LuxFLAG’s methodology requires reporting on qualitative and quantitative performance indicators, commit to external reviews and reporting, and that the bonds meet transparency and disclosure standards required by the Green Bond Principles and Green Bonds Initiative.
LuxFLAG has also announced the granting of its Microfinance label to the Finethic Microfinance Sub-fund II, and of its ESG label to the NEF Ethical Balanced Dynamic, while the Threadneedle European Social Bond Fund has received applicant fund status.
The Microfinance label has been renewed for 11 funds:
- Advans SA
- Dual Return Fund Vision Microfinance Local Currency
- Finethic Microfinance Sub-fund
- KCD Mikrofinanzfonds I – Global
- Microfinance Enhancement Facility
- Triodos Microfinance Fund
- Symbiotics SICAV (Lux.) – SEB Microfinance Fund II, III, IV
- Symbiotics Global Microfinance Fund
- Wallberg Global Microfinance Fund
It also renewed the Environment label for Triodos Renewables Europe Fund.
The ESG label was renewed for 10 funds:
- FDC SICAV Actions Monde Actif 3
- MAM Human Values
- NN(L) European Sustainable Equity
- NN(L) Global Sustainable Equity
- Nordea 1 – Emerging Stars Equity Fund
- Nordea 1 – Nordic Stars Equity Fund
- Nordea 1 – Global Stars Equity Fund
- OFI Invest RS Ethical European Equity
- Sparinvest Emerging Markets Value
- Sparinvest Ethical Global Value
The agency also announced BIL Manage Invest as new associate member, while Manuel Tonnar, director for Development Cooperation and Humanitarian Aid in the Luxembourg Ministry of Foreign and European Affairs, has been appointed vice-chairman to the Board, replacing ambassador Martine Schommer.
The changes bring the total number of funds/instruments labelled to 78, including 32 Microfinance funds, 11 Environment funds, 13 ESG funds, 4 Climate Finance funds and 18 Green Bonds, with another two funds currently having applicant status.
* The Climate Awareness bonds that have been awarded the Green Bond label include: