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.
Adviser guide to sustainable investing
Which factors do managers take into account when investing responsibly? What different investment approaches are employed?
Sustainable investing and the advice process
Taking account of client ESG preferences within the fact-finding process is considered good practice.
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.