ESG Investing Glossary

A time-bound action plan explaining how an organisation will adapt its strategy, business model, operations and capital allocation toward a lower-carbon economy.

A method for exploring how an organisation may perform under plausible future climate and transition conditions.

The ability of an organisation, asset, community or system to anticipate, withstand, adapt to and recover from climate-related shocks and stresses.

A potential benefit arising from climate change or the transition to a lower-carbon and climate-resilient economy.

Actions that reduce greenhouse gas emissions or enhance removals to limit the magnitude of climate change.

Long-term shifts in climate conditions, now primarily driven by human-caused greenhouse gas emissions.

Adjustments in systems, infrastructure, operations or behaviour to reduce harm or capture benefits from actual or expected climate effects.

An economic model that keeps products and materials in use, designs out waste and pollution, and regenerates natural systems.

Work performed by a child that is below the applicable minimum age or is hazardous, exploitative or harmful to the child's health, safety, development or education.

A global environmental disclosure system through which companies, cities, states and regions report information on climate, water and forests.

A levy based on the greenhouse gas emissions or carbon content of fuels, products or activities.

The capture and storage of carbon in forests, soils, oceans, geological formations or long-lived products.

A process that transfers carbon dioxide from the atmosphere and stores it in biological, geological, mineral or product reservoirs.

A monetary value assigned to greenhouse gas emissions through a tax, emissions trading system, internal price or market transaction.

A carbon credit retired to compensate for emissions occurring elsewhere.

A claim that a defined amount of greenhouse gas emissions has been balanced by reductions, removals or offsets over a stated period and boundary.