ESG funds in Luxembourg: what they are and how they are
regulated. Learn all about them by reading this article.
ESG funds: what are they?
In recent times, Luxembourg has become the state with the
highest level of "sustainable
investment," thanks to the spread of ESG
(Environmental, Social, Governance) funds.
But what are ESG funds in Luxembourg.
ESG funds, like any other fund under Luxembourg law, are
investments integrating environmental (E), social (S) and
governance (G) criteria into their strategy. The goal of these
funds, through a sustainable investment approach,
is to create value not only economically, but also socially and
environmentally. ESG funds, in essence, are distinguished, by the
need to balance opposing interests: on one hand, the need to
generate profit (this unites them with all other funds), on the
other hand, the need to meet sustainable and responsible standards,
aiming for a positive impact on the environment and society.
