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.
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.