ESG Flashcards
ESG Reporting
Disclosure of data on an organisation’s environmental, social and governance performance
Required for those listed,
Carbon footprint
Measure of total greenhouse gas emissions caused directly or indirectly by an individual, organisation, event, or product
Social licence to operate
Ongoing acceptance or approval of an organisation by its stakeholders and the community in which it operates
Corporate Social Responsibility (CSR)
A business model where companies integrate social and environmental concerns in their business operations and interactions with stakeholders
Sustainability
The ability to maintain or improve standards of living without damaging or depleting natural resources for future generations
Green bonds
Bonds specifically earmarked for climate and environmental projects
Impact investing
Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return
Governance
The system of rules, practices and processes by which a firm is directed and controlled
Stewardship code
Guidelines aiming to enhance engagement between institutional investors and companies to improve long-term shareholder returns
Diversity and Inclusion (D&I)
Policies and programmes promoting representation and participation of different groups within an organisation
Greenwashing
Marketing a financial product as environmentally friendly when it does not meet environmental standards
Supply chain sustainability
Managing environmental, social and economic impacts in the lifecycle of goods and services
Fiduciary duty
A legal obligation to act in the best interest of another party, incorporating ESG risks in investment decisions
Non-financial reporting
Reporting on a company’s ESG practices
Climate risk disclosure
Reporting on how climate change might impact a company’s financial performance