Assets under management using a Luxembourg ESG ‘label’ have passed €100 billion, the organisation behind the labels says.
Luxembourg Finance Labelling Authority (LFLA) said that at the end of March, assets under management of the 196 labelled ‘LuxFlag’ investment products totalled €106.2 billion.
LFLA also reported a “substantial” growth in ESG – or environmental, social and governance – activity and says the current Covid-19 epidemic will give more impetus for ESG growth.
General manager Sachin Vankalas said: “We believe that the current context around the ongoing epidemic will further sharpen investor focus and pressure on companies in screening ESG factors such as continuity planning, treatment towards employees, supply-chain management and overall preparedness for disasters.”
Over the last 12 months, LuxFlag ESG labelled products grew by 167%, while the total number of its labelled investment products increased by 88%.
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