ESG Investing Glossary

A measure used to track an environmental, social or governance topic, such as emissions intensity, injury rate or board independence.

The explicit and systematic inclusion of material ESG factors in investment analysis and decision-making.

Qualitative and quantitative information used to assess sustainability performance, risks, opportunities and impacts.

A significant event or allegation involving environmental harm, social misconduct, governance failure or breach of recognised norms.

Environmental, social and governance factors used to evaluate how an organisation manages sustainability-related impacts, risks, opportunities and conduct.

The use of stronger stewardship actions when initial engagement does not achieve sufficient progress.

The principle of providing equal remuneration for work of equal value without discrimination.

A structured system for identifying environmental aspects, setting objectives, assigning controls, monitoring performance and driving continual improvement.

A formal process for identifying, predicting and evaluating the environmental effects of a proposed project before approval or implementation.

Using less energy to deliver the same or improved output, service or comfort.

A tradable certificate representing the environmental attributes of a unit of electricity generation, such as a renewable energy certificate or guarantee of origin.

The degree of employees' commitment, motivation, connection and willingness to contribute to organisational goals.

A cap-and-trade programme that sets an overall emissions limit and allows covered entities to trade allowances.

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

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

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