ESG Investing Glossary

A goal of preventing waste and keeping materials in circulation so that little or no waste is sent to landfill, incineration or the environment.

The representation of people with different backgrounds, identities, experiences and perspectives across the workforce and leadership.

The international treaty framework under which governments negotiate and coordinate action on climate change.

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

A service provider that analyses shareholder meeting proposals and provides voting research or recommendations to investors.

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

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

A voluntary initiative asking companies to align strategies and operations with ten principles on human rights, labour, environment and anti-corruption.

The prevention of work-related injury, ill health and fatality through risk identification, controls, worker participation and continual improvement.

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

Indirect greenhouse gas emissions from the generation of purchased or acquired electricity, steam, heat or cooling consumed by the organisation.

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

The global framework for states and businesses to protect, respect and remedy human-rights impacts.

Government-backed recommendations to multinational enterprises on human rights, labour, environment, disclosure, corruption, consumer interests, science, competition and tax.

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.

All other indirect greenhouse gas emissions in an organisation's value chain, grouped into 15 upstream and downstream categories under the GHG Protocol.