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In 10 years sustainable finance has produced about 10 specialised labels. There are now two categories of labels: those based on SRI and those based on green finance (mainly on climate issues, with climate exclusions).

These labels were created in order to clarify the concept of socially responsible investment (SRI) for investors. It is nonetheless difficult for investors to navigate around all these labels, given the wide range of methods and terminologies used. Most labels are based on an independent certification guaranteeing the quality and transparency of the processes in place.

The European Commission is therefore thinking about establishing a European ecolabel as part of the implementation of its green classification system.

LuxFLAG:

Luxembourg Finance Labelling Agency

FNG:

Forum Nachhaltige Geldanlagen, the

rating agency for Germany and Austria

Nordic Swan:

Ecolabel for Nordic countries

Source: Novethic, data as of 02/12/2019

European labels Governance Awarding Type of label # of funds AuM ( bn)

S R

I

SRI Label France

An independent committee supported by the Ministry of Finances

Certified auditors ESG / SRI investment processes: ESG assessment of at least 90% of the portfolio. 20% reduction in the investment universe. Average ESG rating significantly higher than that of the starting universe.

321 121

FNG-Siegel Germany, Austria & Switzerland

A committee of experts supervised by the FNG

GNG (the FNG s labelling organisation) and the University of Hamburg

ESG / SRI investment processes with ethical and sectorial exclusions (points system) ESG assessment of 100% of the portfolio.

104 30

LuxFLAG ESG Luxembourg

LuxFLAG, an independent agency, Luxembourg financial services

LuxFLAG ESG / SRI investment processes based on a pre-set ESG strategy (e.g. best-in-universe, best-in- class, etc.). ESG assessment of 100% of the portfolio.

82 34

Towards Sustainability Belgium

Febelfin QS External auditors Application of quality standards to the portfolio: standards regarding the investment process (sustainability, transparency, disclosures, supervision and ethical and sector exclusions). ESG assessment of 100% of the portfolio.

271 125

Umwelt- zeichen Austria

Ministry of the Environment

Ministry ESG / SRI investment processes: integration of mandatory ESG criteria, meaning that less than 50% of the investment universe can be invested in. Ethical and sector exclusions.

123 15

G re

e n

Fi na

nc e

Nordic Swan Ecolabel Nordic countries

Committee mandated by the governments of Nordic countries

Nordic Swan ESG / SRI investment processes with climate exclusions and green reporting (point-based system). ESG assessment of at least 90% of the portfolio. More than 50% of the fund is invested in securities with strong ESG practices . Ethical and sector exclusions.

32 10

LuxFLAG Environment Luxembourg

LuxFLAG LuxFLAG Thematic investments and ESG criteria. Minimum thresholds at the company level (at least 20% of revenues generated in environmentally responsible businesses) and at the portfolio level (75% green companies).

9 7

LuxFLAG Climate Finance Luxembourg

LuxFLAG LuxFLAG ESG monitoring, environmental themes & climate exclusions 3 1

Greenfin Label France

Ministry of the environment and the energy transition

Certified auditors Thematic investments and ESG criteria. Climate exclusions. Distinction between three types of companies: type 1 (> 50% of revenues in environmentally responsible companies) / type 2 (between 10% and 50% of revenues in environmentally responsible companies) / type 3 (less than 10%). At least 20% of the portfolio must be made up of type-1 companies; no more than 25% may consist of type-3 companies.

36 5

ODDO BHF AM 2020

28