You can draw on several sources of information. The first is to carry out in-depth research into the company or investment project in question: its annual reports, its extra-financial performance statements, its official communications, independent analyses of the company, etc. In other words, if the company merely promotes its sustainable commitment without providing tangible proof, you have every reason to be suspicious.
The second is to analyse the scores and labels. The scores are awarded by international rating agencies specialising in assessing the ESG performance of companies. The best known are Trucost, Virgo Eiris, Morningstar, Sustainalytics and Innovest. As for labels, Luxembourg has an independent financial labelling agency, LUxFLAG. It has developed thematic labels: positive impact labels (Microfinance, Environment, Climate Finance, Green Bond) and sustainable transition labels (ESG, ESG Insurance Product, ESG Discretionary Mandate).
But although these initiatives constitute an undeniable plus, they are not enough to form the basis of the choice of investment vehicle. For example, the rating agencies do not have a common frame of reference. The ratings given to companies can therefore vary greatly from one agency to another, which calls into question the reliability of these assessments. Labels are no panacea either. As with the rating agencies, the considerations can vary considerably from one label to another. What's more, a structure may very well incorporate ESG criteria without being labelled.