ESG Investing Glossary

Direct greenhouse gas emissions from sources owned or controlled by the reporting organisation.

A greenhouse gas reduction target aligned with the pace of decarbonisation required by climate science to meet temperature goals.

An organisation that develops standards and validates corporate and financial-institution greenhouse gas targets against climate science.

Industry-based disclosure standards identifying sustainability topics and metrics that are likely to be financially material in 77 industries.

A multi-stakeholder certification system and standard for more sustainable palm oil production and supply chains.

A revision of previously reported sustainability information because of errors, methodology changes, structural changes or improved data.

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

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

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

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

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

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

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

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

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.

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