Investor & Sustainable Finance Terms
ESG Integration
Last Updated: July 27, 2026Incorporating ESG risks and opportunities into investment decisions.
Asset Stewardship
Last Updated: July 27, 2026Responsible management of investments considering long-term ESG impacts.
Material ESG Risk
Last Updated: July 27, 2026ESG issue capable of materially affecting enterprise value.
Impact Fund
Last Updated: July 27, 2026Investment fund targeting measurable social or environmental outcomes.
Value Chain Emissions
Last Updated: July 27, 2026Total emissions generated across suppliers and customers.
Transition Plan
Last Updated: July 27, 2026Strategic roadmap for achieving sustainability or emissions targets.
Scope 3 Financed Emissions
Last Updated: July 27, 2026Emissions associated with investments or lending activities.
Principal Adverse Impacts (PAIs)
Last Updated: July 27, 2026Negative ESG effects investment decisions may create.
Climate Value at Risk (Climate VaR)
Last Updated: July 27, 2026Financial risk estimation from climate-related scenarios.
Transition Finance
Last Updated: July 27, 2026Funding supporting movement toward lower-carbon operations.
Weighted Average Carbon Intensity (WACI)
Last Updated: July 27, 2026Metric assessing portfolio exposure to carbon-intensive companies.
Stewardship Reporting
Last Updated: July 27, 2026Disclosure of investor engagement and governance activities.
Portfolio Decarbonisation
Last Updated: July 27, 2026Reducing emissions exposure across an investment portfolio.
Stranded Assets
Last Updated: July 27, 2026Assets losing value due to climate transition or regulation changes.
Responsible Investment Policy
Last Updated: July 27, 2026Framework guiding ESG-aligned investment practices.
Sustainability-linked Loan
Last Updated: July 27, 2026Loan where terms depend on ESG performance metrics.
Sustainability-linked Bond
Last Updated: July 27, 2026Bond tied to sustainability performance targets.