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Innpact Insights #6
In collaboration with LuxFLAG

Sustainability Risk Assessment and Treatment | A Practical Guide for Impact Fund Managers

31 October 2025 | 1min to read

Sustainability risk management is no longer a back-office function—it’s a critical part of the investment process for impact fund managers.

In collaboration with LuxFLAG, the Luxembourg Finance Labelling Agency, this latest edition of Innpact Insights offers practical guidance on how to assess and treat ESG risks across the investment lifecycle.

From climate risks to governance gaps and social challenges, the guide outlines how to score, prioritise, and manage these risks in line with international standards such as SFDR, OPIM, and IFC Performance Standards.

❍ What is sustainability risk and why it matters for impact funds
❍ How to assess, score, and reduce ESG risks
❍ How LuxFLAG’s labels support transparency and credibility in impact investing

LuxFLAG provides independent verification through its ESG and impact labels, helping investors identify funds that credibly integrate sustainability. Innpact complements this by helping funds design ESG frameworks, build internal capacity, and prepare for successful labelling.

Download the full guide and strengthen your fund’s ESG risk approach with Innpact and LuxFLAG.

How we can help you

As a leading impact finance specialist, we help fund managers design and implement effective sustainability risk strategies—supporting everything from ESG scoring and monitoring to alignment with labels like LuxFLAG.

Our experts

Want to know more about our Services? Contact our experts directly by clicking on the link below.

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Adriana Balducci

Adriana Balducci
Associate Director
Head of Advisory Services

adriana.balducci@innpact.com

Dayo Ojaleye picture

Dayo Ojaleye
ESG Expert
dayo.ojaleye@innpact.com

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