The FNG Label for sustainable mutual funds
Until now, no guidance on sustainable funds has been available. The FNG Label for sustainable mutual funds is the first to offer consumers, institutional investors and marketing organizations a transparent standard for funds which pursue a consistent and rigorous sustainability strategy. It is based on minimum requirements in accordance with internationally recognized standards and guarantees scrutiny by an independent auditor. In the case of organic food, the Europe-wide “Bio” label and other relevant labels have long been standard.
Initiators and certification role
The FNG quality label was initiated by and named after Forum Nachhaltige Geldanlagen e.V. (FNG), the industry association for sustainable investment in the German-speaking countries. FNG developed the Label in a three-year-long process together with financial experts and civil society stakeholders and launched it onto the market in 2015. The auditing and evaluation of funds is handled by the independent media and research centre Novethic, which is internationally recognised for its experience in the certification of sustainable funds.
The FNG Label offers the public
- a visual and substantive guide to purchasing funds
- guidance for discussions with banking and financial advisors
The FNG Label helps investors to make a better assessment of the sustainability of a mutual fund (equity fund, mixed fund or bond fund). However, the Label does not constitute a purchase recommendation and does not take any financial criteria into account when evaluating funds. It is therefore still essential for private investors to obtain advice on these aspects.
The sustainable investment market is evolving continuously, as are the demands of investors. The goal of the FNG Label is the establishment and continuous improvement of quality standards for sustainable investment products in the German-speaking countries. This also includes further development of the Label concept in collaboration with the Advisory Committee.
As a standardization tool, the FNG Label thus promotes
- quality assurance for sustainable investments
- competition between providers of sustainable funds
- more widespread use of sustainable investment approaches in the financial market
To the FNG Label criteria