Organizational report that gives information about economic, environmental, social, and governance performance and impacts. For companies and organizations, sustainability —the ability to be long-lasting or permanent—is based on performance and impacts in these four key areas.

an environmental, social or governance event or condition that, if it occurs, could cause an actual

The SDGs are 17 goals set by the UN in 2015 to be achieved by 2030, aiming to catalyse sustainable development. They include goals such as no poverty, gender equality, decent work, sustainable consumption, climate action and reduced inequalities. The goals were developed to replace the Millennium Development Goals (MDGs) which ended in 2015. Unlike the MDGs, the SDG framework does not distinguish between “developed” and “developing” nations.

Sustainable finance refers to any form of financial service integrating environmental, social and governance (ESG) criteria into the business or investment decisions for the lasting benefit of both clients and society at large. Activities that fall under the heading of sustainable finance include (but are not limited to) the integration of ESG criteria into asset management, sustainable thematic investments, active ownership, impact investing, green bonds, lending with ESG risk assessment and the development of the whole financial system in a more sustainable way.

an investment in an economic activity that contributes to an environmental objective, as measured,

Investment in businesses contributing to sustainable solutions, both in environmental and social topics.

Frameworks which classify different elements within a given set (e.g. economic activities, social practices or conventions) by defining them and linking them to different categories based on certain criteria.

Investment in businesses contributing to sustainable solutions both in an environmental or social dimension. In the environmental segment this includes investments in renewable energy, energy efficiency, clean technology, low-carbon transportation infrastructure, water treatment and resource efficiency. In the social segment this includes investments in education, health systems, poverty reduction and solutions for an ageing society.

The risks of any negative financial impact on the institution stemming from the current or prospective impacts of the transition to an environmentally sustainable economy on its counterparties or invested assets.

Transitioning to a lower-carbon economy may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, speed, and focus of these changes, transition risks may pose varying levels of financial and reputational risk to organizations.

Transition risks stems from efforts to reduce GHG emissions as the economy shifts towards a lower GHG-footprint.

The causal chains that explain how these risk drivers impact institutions through their counterparties and invested assets.

(a)      a management company as defined in point (b) of Article 2(1) of Directive 2009/65/EC; or (b)     an investment company authorised in accordance with Directive 2009/65/EC which has not designated a management company authorised under that Directive for its management;

Unconditional exclusions of products or business activities incompatible with the investor’s values (often referred to as values-based exclusions, e.g. exclusions of weapon manufacturers) or leading to excessive risks (e.g. coal mining).

an undertaking authorised in accordance with Article 5 of Directive 2009/65/EC;

This refers to investors addressing concerns about environmental, social and governance (ESG) issues by actively exercising their voting rights based on ESG principles.

the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC;