FNG-LABELS

The methodology of the FNG-Labels is based on clearly defined minimum standards that not only promote transparency and traceability but also require central minimum exclusion criteria. These include the protection of labour and human rights, environmental aspects, and anti-corruption measures – based on internationally recognized frameworks such as the UN Global Compact or the OECD Guidelines.

Further information and the opportunity to apply can be found at: https://air4p.de/en/fng-label/

BASIC RESEARCH ON AN IMPACT LABEL

In the research project “Study on the Applicability, Actual Use, and Effects of the EU Taxonomy in Financial Markets and the Real Economy with Regard to Environmental Objectives 3 to 6,” funded by the BMUKN, AIR is working together with the University of Hamburg to develop a scientifically sound methodology for an impact label for financial products – with a particular focus on environmental and climate impacts as defined by the EU Taxonomy.

The aim is to create a robust foundation for a Europe-wide impact label. The project focuses on:

  • Conceptual foundations of the impact measurement of financial products
  • Proposals for new product categories, especially for impact-oriented products within the framework of the SFDR review
  • Practice-oriented criteria development to ensure feasibility
  • Empirical pilot studies to test the criteria on specific financial products
  • Expert workshops with diverse stakeholder groups to ensure quality and political relevance

AIR contributes its expertise in assessing sustainable funds (e.g., the FNG-Label) and its research on impact investments. As a subcontractor, it is responsible for key aspects of the methodological development and piloting. The project is scheduled from late 2024 to early 2027.

PRODUCT DEVELOPMENT FOR IMPACT RATING

Impact investments are designed to help close the financing gap for achieving the UN Sustainable Development Goals (SDGs) by combining measurable social and environmental benefits with financial returns. However, the lack of reliable impact data and limited transparency about the actual „investor contribution“ make it difficult for investors to allocate capital effectively to high-impact solutions.

Our EU-funded project tackles this challenge head-on: building on the existing „Impact Potential Assessment Frameworks“ (IPAF), we are developing and scaling an Impact Potential Rating that makes the impact potential of financial products measurable and verifiable. This will create a solid foundation for optimizing impact-oriented portfolios and directing capital flows to where they benefit social enterprises and impact-driven companies most.

The project’s work packages include:

  • Developing a scientifically sound assessment framework
  • Conducting pre-tests of the rating and training analysts
  • Building an AI-supported assessment tool to enhance process efficiency
  • Implementing business development measures
  • Launching the Impact Potential Rating

The project is carried out by a consortium consisting of the University of Hamburg, the Sustainable Finance Observatory, AIR, and a collaborating investor. The project period is from mid-2025 to early 2028.

Swiss Sustainable Finance (SSF)

Since 2023, AIR has been contributing continuously to the Swiss Sustainable Investment Market Study, published annually by Swiss Sustainable Finance (SSF). AIR is responsible for the analytical workstream of the study, covering the plausibility checks and assessment of data submitted by banks, asset managers, and asset owners, analyses, and the methodological development of the study.

AIR has so far been involved in the 2023, 2024, 2025 and 2026 editions of the Swiss Sustainable Investment Market Study. The market study provides comprehensive insights into the current state and trends of sustainable investments in Switzerland and is considered one of the most established references for monitoring the Swiss market for sustainable finance.

BUNDESVERBAND IMPACT INVESTING

In 2026, the Bundesverband Impact Investing (BVII, formerly Bundesinitiative Impact Investing – BIII) published the German Impact Investing Survey 2025, which was developed with key contributions from AIR. The study was funded as part of the project “Invest4Impact: Impact Investing – Made in Germany, for Europe and beyond” by the Federal Ministry for Economic Affairs and Climate Action (BMWK) and the European Union (EU). The released survey provides profound insights into the development and current challenges of impact investing, serving as an important foundation for future action measures and priority setting for the BVII.

Back in autumn 2022, AIR collaborated with the University of Hamburg and the ZEW – Centre for European Economic Research (ZEW) to conduct the market study “Impact Investing in Germany” on behalf of the former Bundesinitiative. This study provided a first systematic overview of the German impact investing market.

EUROSIF

Since spring 2022, AIR has been working together with other partners, including the European Sustainable Investment Forum (Eurosif) and the University of Hamburg, to develop standards for a clearer definition of sustainable investments, with a focus on the contribution to a sustainable transition. Based on the published classification scheme for sustainable investments, AIR contributes to a Eurosif working group developing a methodology for future market studies. The work on this standard setting is intended to help make the positive contribution of financial flows more clearly ascertainable and transparent. 

To make the methodology practical, Swiss Sustainable Finance (SSF), in cooperation with the University of Hamburg and AIR, used the classification as the basis for a pilot study as part of the Swiss Sustainable Investment Market Study 2023. The pilot study tested the classification in practice to gather valuable insights and empirical values, especially for the innovative classifications “Impact Aligned” and “Impact Generating”. This also benefits the Eurosif working group, which is responsible for integrating the new classification into future market studies. The Swiss Sustainable Investment Market Study has been published on June 27, 2023.  

INDIVIDUAL RESEARCH REQUESTS

Do you need individual research on sustainability topics, sustainability labels or criteria for sustainable and responsible investment (SRI)? Please let us know your request and the desired scope of the analysis.

We will review your request and then get in touch with you. Write to us at: kontakt@air4p.org