ESG Investing Glossary

The capacity to create enduring economic and social value while protecting environmental systems and meeting present needs without undermining future generations.

A use-of-proceeds bond financing a combination of eligible green and social projects.

A bond whose financial or structural terms change depending on whether the issuer achieves predefined sustainability performance targets.

A loan whose pricing or other terms are linked to the borrower's achievement of predefined sustainability performance targets.

Environmental, social or governance conditions that could affect an entity's prospects, or create opportunities, over the short, medium or long term.

Development that meets present needs without compromising the ability of future generations to meet their own needs.

Seventeen global goals adopted by United Nations member states for achieving sustainable development by 2030.

Financial activities that integrate environmental, social and governance considerations and channel capital toward sustainable or transition outcomes.

The European Union framework requiring financial market participants and advisers to disclose sustainability information at entity and product level.

Purchasing decisions that consider life-cycle environmental, social, ethical and economic impacts as well as price and performance.