ESG Investing Glossary

Productive work that provides fair income, security, social protection, rights at work, voice and equal opportunity.

The conversion of forest to non-forest land use, whether permanent or long term.

Policies and practices that recognise differences, address structural barriers and create fair access, participation and belonging.

A principle requiring an activity that contributes to one environmental objective not to cause significant harm to other specified environmental objectives.

A situation in which the same emissions reduction, removal, credit or renewable-energy attribute is claimed, issued or counted more than once.

The use of ownership rights and influence by investors to protect and enhance long-term value, including engagement and voting.

The requirement that a claimed environmental benefit would not have occurred without the incentive or intervention provided by a project, policy or finance.

An actual or potential negative effect that an organisation causes, contributes to, or is directly linked to through its operations, products, services or business relationships.

The physical and mental state of an animal in relation to the conditions in which it lives and dies.

Policies, controls and conduct intended to prevent bribery, facilitation payments, corruption, extortion and improper influence.

Independent work that increases confidence in sustainability information by evaluating it against suitable criteria.

Estimated emissions that do not occur because a product, service or project replaces a higher-emitting alternative, measured against a defined baseline.

A historical year against which future performance, emissions, energy use or other ESG metrics are compared.

An investment approach that favours issuers with stronger ESG performance relative to peers in the same sector or category.

The variability among living organisms at genetic, species and ecosystem levels.

The decline in the variety, abundance, integrity or resilience of genes, species and ecosystems.