ESG Investing Glossary

A high, though not absolute, level of assurance based on more extensive evidence and procedures than limited assurance.

Actions that restore affected people as far as possible to the position they would have been in had harm not occurred, or otherwise provide appropriate redress.

Energy from sources that are naturally replenished, such as solar, wind, hydro, geothermal and sustainably managed biomass.

The organisational and value-chain limits within which sustainability information is measured and disclosed.

The time span covered by sustainability information, normally aligned with the financial reporting period.

Emissions that remain after feasible emissions reductions have been implemented at the net-zero target date.

The delivery of more value or output with less material, energy, water and waste.

The design, deployment and governance of artificial intelligence in ways that are lawful, safe, transparent, accountable and respectful of human rights.

An approach that incorporates sustainability and governance issues into investment and stewardship decisions.

Procurement and supply-chain practices that consider environmental, human-rights, labour, ethical and traceability risks alongside cost, quality and delivery.