ESG Investing Glossary

A connected set of concepts describing how an organisation relies on nature, affects nature, and experiences resulting risks or opportunities.

The exclusion of sectors, issuers, activities or securities from an investment universe based on defined ESG, ethical or norms-based criteria.

The board's responsibility for supervising material sustainability impacts, risks, opportunities, strategy, controls and disclosure.

The degree to which directors can exercise objective judgement without relationships or interests that compromise their decisions.

Principles and systems guiding honest, fair, responsible and lawful organisational conduct.

The measurement, calculation and reporting of greenhouse gas emissions, removals and related information.

A policy that applies a carbon-related charge or certificate requirement to specified imported goods based on their embedded emissions.

The cumulative amount of carbon dioxide that can be emitted while retaining a stated probability of limiting warming to a specified temperature.

A reporting approach that considers both how sustainability matters affect enterprise value and how the organisation affects people and the environment.

The integration of environmental considerations into product or service design across its life cycle.