Glossary


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A

Active ownership

Engaging with companies on ESG concerns that affect their long-term growth, and using shareholder power to influence corporate behaviour.

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E

ESG integration

The inclusion of ESG factors alongside financial analysis of assets by investment managers.

Exclusionary screening

Excluding entire sectors, companies or countries from a fund or portfolio based on ESG criteria, moral or ethical views, or religious beliefs.

Engagement

A process that allows the fund manager to meet the companies in which they invest. This is crucial to the ongoing management of a fund as it allows regular discourse with a company or regulator in order to seek long-term positive outcomes.

ESG (environmental, social and governance)

An investment approach that incorporates environmental, social and governance factors into the investment process.

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G

Global Impact Investing Network (GIIN)

A not-for-profit organisation devoted to increasing the effectiveness of impact investing, which was launched in 2009.

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Impact investing

Investing in companies, organisations and funds which have the commercial purpose of solving social or environmental problems.

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P

Positive screening

Investing in companies demonstrating positive ESG performance relative to peers.

Principles for Responsible Investment (UNPRI)

The United Nations-backed Principles for Responsible Investment initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice. It works to understand the implications of sustainability for investors, and support signatories to incorporate these issues into their investment decision-making and ownership practices.

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S

SRI (Socially Responsible Investment)

Socially responsible investing is the incorporation of ESG factors into investments. It covers a range of strategies including ESG integration, thematic investing, ethical investing, socially responsible investing, sustainable investing, green investing and impact investing, among others.

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U

UN SDGs

The United Nations Sustainable Development Goals. These are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. They can provide a useful lens through which to view impact investing.

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