Elevator Pitch
The Luxembourg Sustainable Finance Initiative (LSFI) is Luxembourg’s coordinating entity on Sustainable Finance. Our objective is to raise awareness, and support the transition of the financial sector in Luxembourg towards sustainability. We are also a central point of contact and information for all sustainable finance actors in Luxembourg and we have the mandate of elaborating and implementing the Luxembourg Sustainable Finance Strategy. The LSFI was founded in January 2020 by the Luxembourg Government (Ministry of Finance and Ministry of the Environment, Climate and Biodiversity), Luxembourg for Finance (the agency for the development of the financial centre) and the High Council for Sustainable Development (CSDD), an independent advisory body to the Luxembourg Government about sustainable development matters that represents the civil society.
Problem Solved
The LSFI activities revolve around 3 pillars:
- We raise awareness and promote sustainable finance, aiming to help every player be informed, aware, and embark the transition towards sustainability. Through our monthly newsletter, regular webinars, informative sessions, LinkedIn posts, videos or infographics, we work towards this very important goal.
- We unlock potential: we aim to create a knowledge and experience sharing platform to unlock the sector’s potential. For example, we are developing the LSFI Take Action toolkit, a platform to provide practical guidance to financial professionals and retail investors, and we have launched cross-sectorial working groups.
- We measure progress: We support the Luxembourg financial industry collect and analyse data in order to measure and follow its progress in integrating sustainability. Every year, we conduct the study «Sustainable Finance in Luxembourg».
Solution / Technology
Transitioning to sustainable finance is key to ensure a just, inclusive and sustainable future. This field has experienced steady growth and development over the last years, supported by heightened awareness and regulatory initiatives, among others. However, sustainable finance is confronted with challenges and shortcomings, with one of them closely tied to data, reporting, and transparency. Fintech can play a crucial role in advancing the financial sector towards sustainability, for example, through solutions related to Blockchain & Distributed Ledger Technology (DLT), Optical Character Recognition (OCR) technology, Peer-to-Peer (P2P) Lending for Sustainable Projects, Data Analytics & AI for ESG Assessment or Robo-Advisors with ESG Integration.
Market Size
My suggestion here would be to add a few figures / facts showcasing Luxembourg’s sustainable finance market size. Would that work? See below some examples:
- ESG funds account for 67.3% of Luxembourg’s overall UCITS AuM, reaching EUR 2.8tn in assets by the end of June 2023.
- A significant proportion (67%) of the AuM of UCITS domiciled in Luxembourg report under Article 8 or Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
- Luxembourg hosts the Luxembourg Green Exchange, which has the largest market share of listed green bonds worldwide, as well as other pioneering organisations such as the International Climate Finance Accelerator (ICFA) or LuxFLAG.
Website
www.lsfi.lu
