Our fund level data includes the following sustainability metrics:
Sustainability fund labels and themes: Identify funds with sustainability-related investing labels and themes that align with your sustainability mandate. The labels tracked include ESG integration, SDG, impact, climate, sharia-compliant, energy transition, and EU regulation SFDR article 8 and article 9.
SASB risk map: Identify the most material sustainability-related risk factors for a specific fund.
Management indicators: Evaluate the potential positive impact of a fund’s portfolio.
If you are tasked with creating a new fund, sustainability fund labels enable you to benchmark your offering against the competition, so you can better position the new fund in market and strengthen your fundraising. If you are an institutional investor, this component enables you to discover strategies and investment funds that align with your sustainability mandate.
Sustainability funds in the market are identified – and tagged – five regulatory-related labels and fifteen sustainability themes.
Sustainability fund labels:
EU Taxonomy-Aligned: Funds whose objective, as defined by the EU Taxonomy, invest in eligible economic activities that substantially contribute to at least one of the six environmental objectives. Funds with this label have either disclosed alignment and/or percentage of investments aligned with the EU Taxonomy.
What qualifies as an environmental objective:
Climate change mitigation
Climate change adaptation
Sustainable use of water/marine resources
Transition to a circular economy
Pollution prevention
Biodiversity protection
LuxFLAG: Funds whose objective meet the sustainability, ESG and impact criteria defined by the Luxembourg Finance Labelling Agency (LuxFLAG).
SFDR Article 8: Funds defined by the European Union's Sustainable Finance Disclosure Regulation (SFDR) as promoting environmental and/or social matters without having sustainable investment as its primary objective (i.e., not impact funds).
What qualifies as promotion:
Any disclosure or provision of information and an “impression” that the investments pursued by a fund also consider specific environmental or social characteristics.
Principal Adverse Sustainability Indicators (PASIs) integrated into investment decisions.
Other criteria:
A fund must be subject to binding criteria in relation to its environmental and/or social characteristics; mere integration of sustainability risks is not sufficient.
Investee companies must have good governance practices.
SFDR Article 9: Funds whose objective, as defined by the European Union's Sustainable Finance Disclosure Regulation (SFDR), is either sustainable investment or reducing carbon emissions.
What qualifies as a sustainable investment:
Any disclosure or provision of information and an “impression” that the investments pursued by a fund also consider specific environmental or social characteristics.
Principal Adverse Sustainability Indicators (PASIs) integrated into investment decisions
UK SDR: Funds whose objective, as defined by the UK FCA’s Sustainability Disclosure Requirements (SDR), invest at least 70% of its underlying assets with sustainability objectives that aim to improve or pursue positive, environmental and/or social outcomes. These funds may adopt one of the following SDR fund labels: Sustainability Focus, Sustainability Impact, Sustainability Improvers and Sustainability Mixed Goals.
Sustainability fund themes:
Affordable housing: Funds whose objective is to support the development, acquisition, improvement, or financing of housing that remains affordable to increase the supply of low-income, residential and workforce housing.
Carbon credits: Funds whose objective is to invest in carbon projects that generate verified carbon credits. A carbon credit is a certificate that represents a measurable reduction, removal or avoidance of GHG emissions, with the aim to contribute towards decarbonization.
Circular economy: Funds whose objective is to invest in companies and projects that facilitate the transition to a regenerative, resource-efficient economy aligned with the circular economy model. Key principles include, but are not limited to, eliminating waste and pollution, increasing the recycling and reuse of materials and supporting processes to regenerate nature.
Climate: Funds focused on supporting the mitigation or adaption towards climate change.
Data privacy: Funds whose objective is to invest in companies, technologies, and solutions that enable the secure handling, protection, and ethical use of personal and organizational data.
DEI: Funds that focus investments on companies promoting diversity, equity, and inclusion (DEI). This includes inclusive leadership, equitable workplace practices, or products and services that address the needs of underrepresented communities. The theme supports long-term value creation through diverse talent, innovation, and social impact.
Energy transition: Funds that focus investments on supporting the transition to renewable energy sources. This tag applies to any fund whose objective is to support the global transition to sustainable energy sources.
ESG integration: Funds that consider environmental, social and governance principles in their investment strategies. These may encompass sustainability factors as a whole or the E, S or G individually, with financial returns remaining the funds’ primary directive.
Green buildings: Funds focused on sustainable real estate and construction. These funds typically invest in businesses that design, construct, operate, maintain, renovate, and destroy using environmentally-friendly and resource-efficient processes.
Impact investing: Funds focused on generating positive social or environmental effects. These funds are generally values-driven and pursue societal or environmental objectives complementary to financial performance.
Nature-based solutions: Funds with an investment focus on actions to protect, sustainably manage, and restore natural and modified ecosystems that address societal challenges effectively and adaptively, simultaneously benefiting people and nature. These solutions include reforestation, wetland restoration, sustainable agriculture, and biodiversity conservation, aiming to mitigate climate change, enhance ecosystem resilience, and support sustainable development.
Negative screening/exclusionary factors: Funds that use specific criteria to exclude certain companies or sectors from their portfolio based on ethical, environmental, or social concerns. The goal is to avoid investing in industries or companies that conflict with the fund’s values or the preferences of socially conscious investors.
SDG: Funds seeking investments in assets aligned with the United Nations Sustainable Development Goals (SDGs).
Sharia-compliant: Faith-based funds that adhere to Sharia Law and the Islamic religion’s principles it represents. Sharia funds do not invest in companies that deal with the production of weapons, alcohol, pork, gambling and tobacco. Their key principles include promoting businesses that benefit society and investments with increased transparency. Sharia rules preclude short-selling and excess leveraging and prohibit the trading of derivatives or futures.
Supply chain sustainability: Funds whose objective is to invest in the improvement of environmental and social impacts of supply chains. This includes efforts to:
Reduce carbon emissions across logistics and production.
Source materials responsibly, such as using recycled or ethically produced inputs.
Ensure fair labour practices and human rights compliance.
Improve transparency and traceability in sourcing and manufacturing.
When is a fund tagged?
Funds are tagged in the following instances:
Marketing materials or other collateral explicitly identify the fund with a label or theme.
GPs self-declare their fund to be associated with a label or theme.
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