ABBL

In recent years, an increasing emphasis has been placed on companies and institutions’ responsibility for the environment and society. As important economic actors, financial institutions have a significant part to play in terms of Corporate Social Responsibility (CSR). To underline this role and in order to promote CSR across Europe’s financial sector, the European Banking Federation (EBF), of which the ABBL is a founding member, published a survey in 2008 outlining European banking sector best practices in the field of CSR.

Socially responsible investing

In 2006, the ABBL, together with other institutions, created the Luxembourg Fund Labelling Agency (LuxFLAG). The agency aims to promote the raising of capital for Microfinance by awarding a recognisable label to eligible Microfinance Investment Vehicles (MIV). As such, this label reinsures investors that an MIV is actually investing, directly or indirectly, in the Microfinance sector.

Due to its legal and fiscal environment and its renowned financial expertise, the Luxembourg financial centre plays an important role in mediating between potential investors in Microfinance and the Microfinance institutions that grant access to financial services to some of the most impoverished people in the world. Indeed, six of the world’s largest Microfinance investment vehicles are domiciled in Luxembourg. Many ABBL members are involved in Microfinance funds as administration agents, custodian banks or domiciliation agents.

Certifying and promoting socially responsible behaviour

In 2008, the ABBL stepped up its efforts to promote social and environmentally responsible behaviour in the Luxembourg financial sector. Thus, together with the Luxembourg Employers’ Association (UEL), the ABBL is actively encouraging CSR in Luxembourg in the context of the National Institute for Sustainable Development and Corporate Social Responsibility (iNDR). Jean-Jacques Rommes, General Manager of the ABBL, is a member of the iNDR's Board. Amongst other things, the institute aims to develop labels that certify socially responsible behaviour. As a first step in the labelling process, the iNDR recently launched the "Social et Egalité des chances professionnelles" certificate.

In its role as the representative body of Luxembourg’s banking sector, the ABBL also mediated between the Ministry of Economy and Luxembourg retail banks in the context of the Ministry’s “Energy efficient Partner” initiative. As a result, four ABBL member banks were granted the “Energy efficient Partner” logo in May 2008, after having committed themselves to offering reduced Interest rates on loans financing the construction of passive or low-energy houses.

2008 also saw the ABBL strengthen its partnership with the non-governmental organisation ADA, which specialises in Microfinance. Both associations have already been collaborating for several years, most notably in setting up LuxFLAG, a label guaranteeing that Luxembourg Microfinance funds really invest in Microfinance projects. In 2008, the ABBL worked together with ADA in organising the photographic exhibition “Microfinance côté face”, a project aiming to raise awareness about Microfinance amongst the general public and amongst the actors of the Luxembourg financial centre.

Promoting private philanthropic commitments

In January 2009, the Luxembourg government and the Oeuvre Nationale de Secours Grande-Duchesse Charlotte officially announced the creation of the Fondation de Luxembourg. By providing advice and information, and by developing specific tools and structures, the Fondation de Luxembourg aims to promote, support and provide guidance to donors who wish to make long-term financial commitments of a certain size in the public interest. The Fondation de Luxembourg works closely with the Luxembourg banking sector, notably its private banks. The ABBL is represented at the Fondation's Board of Directors by Jean-Jacques Rommes.