ESG Investing Glossary

An objective under which biodiversity losses from an activity are balanced by equivalent gains after applying the mitigation hierarchy.

A state in which anthropogenic greenhouse gas emissions are reduced deeply and any residual emissions are balanced by durable removals.

The exclusion of sectors, issuers, activities or securities from an investment universe based on defined ESG, ethical or norms-based criteria.

A connected set of concepts describing how an organisation relies on nature, affects nature, and experiences resulting risks or opportunities.

A goal of halting and reversing nature loss so that nature is measurably improving relative to a baseline.

The stock of renewable and non-renewable natural resources, such as air, water, soil, minerals and living systems, that provide benefits to people and the economy.

A national climate plan submitted under the Paris Agreement describing a country's emissions targets and related actions.

An umbrella term covering severe exploitation such as forced labour, debt bondage, servitude, human trafficking and slavery-like practices.

A sequence for managing environmental and social impacts by first avoiding them, then minimising, restoring or rehabilitating, and finally addressing residual impacts.

A potent greenhouse gas emitted from fossil-fuel systems, agriculture, waste and natural sources.

A structured process to identify, evaluate and prioritise sustainability matters for management and disclosure.

The principle used to determine which information or sustainability matters could reasonably influence decisions or require accountability.

A Scope 2 accounting method using emissions factors from contractual instruments such as supplier-specific products or energy attribute certificates.

A Scope 2 accounting method using average emissions factors for the grids or energy systems where consumption occurs.

Remuneration sufficient for a worker and their family to afford a decent standard of living in a particular place.

A moderate level of assurance based on less extensive evidence and procedures than reasonable assurance.