ESG Investing Glossary

Industry-based disclosure standards identifying sustainability topics and metrics that are likely to be financially material in 77 industries.

An organisation that develops standards and validates corporate and financial-institution greenhouse gas targets against climate science.

A greenhouse gas reduction target aligned with the pace of decarbonisation required by climate science to meet temperature goals.

Direct greenhouse gas emissions from sources owned or controlled by the reporting organisation.

Indirect greenhouse gas emissions from the generation of purchased or acquired electricity, steam, heat or cooling consumed by the organisation.

All other indirect greenhouse gas emissions in an organisation's value chain, grouped into 15 upstream and downstream categories under the GHG Protocol.

Dialogue between investors and investee companies intended to understand or influence strategy, governance, performance or disclosure.

A proposal submitted by shareholders for a vote at a company's general meeting.

A bond whose proceeds are exclusively used for eligible projects intended to address social issues or deliver positive social outcomes.

Negotiation, consultation and exchange of information among governments, employers and workers or their representatives.

A positive or negative change in people's rights, wellbeing, opportunities or communities caused or influenced by an organisation.

The ongoing acceptance or approval of an organisation's activities by affected communities and wider stakeholders.

An investment approach that combines financial objectives with ethical, social or environmental criteria, often using screens and shareholder action.

An individual or group whose interests are affected, or could be affected, by an organisation's activities and decisions.

A planned process of dialogue with people or groups affected by, interested in or able to influence an organisation.

The responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries and, where relevant, sustainable benefits for the economy, environment and society.