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Sustainable investing glossary

Your A to Z of ESG

The world of sustainable investing is full of jargon – ethical and impact investing, carbon neutrality and credits, negative and positive screening are just a few examples. It’s no wonder that clients can be confused by the vocabulary. Our glossary is designed to help you and your clients build a more common understanding of some of the more frequently used terms. For instance:
 

  • Carbon footprint – a measure of the total amount of greenhouse gasses, primarily carbon dioxide, released into the atmosphere as a result of the activities of an individual, company or other entity
  • Corporate engagement – using shareholder power to influence corporate behaviour through direct engagement with a company
  • Greenwashing – falsely giving the impression that a company’s products and services provide greater environmental or ‘green’ benefits than is actually the case
  • Sin stocks or sectors – companies or a whole industry sector considered to be involved in unethical or immoral activities. Common examples include those involved in armaments, tobacco, alcohol, gambling and adult entertainment.
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Adviser guide to sustainable investing

Which factors do managers take into account when investing responsibly? What different investment approaches are employed?

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Sustainable investing and the advice process

Taking account of client ESG preferences within the fact-finding process is considered good practice.

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Sustainable fund options on FundsNetwork

We offer over 310 sustainably-managed funds from 81 different fund groups through our platform.

Important Information - Please note that the value of investments and the income from them can go down as well as up so your client may get back less than they invest.