LuxFLAG Launches Transition Label to Bridge Critical Gap in Sustainable Investment Landscape

The Luxembourg Finance Labelling Agency (LuxFLAG) is proud to announce the launch of its new Transition Label, designed to recognize and support financial products that contribute credibly to the shift toward a low-carbon and more sustainable economy.

The Transition Label responds to a growing need in the sustainable investment ecosystem: enabling the financing of strategies that are aligned with science-based transition pathways but may not yet fully meet the strict thresholds of green, climate, or impact classifications. It acknowledges the reality that in certain sectors or geographies, immediate alignment with climate, environmental, or social objectives is not yet feasible – but progress is both essential and underway.