Its wide-ranging nature means that responsible investment involves a host of associated language and jargon. Here we explain some of the most commonly used terms.
Discharging responsibilities as investors and owners in a company through engagement and voting to influence the management of environmental, social and governance (ESG) issues.
The responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.16
Environmental, Social and Governance (ESG)
A framework that breaks the broad concept of sustainability down into these 3 key issues.
Entering dialogue with companies after investment, to support and encourage positive change in the management of key ESG issues.
Exercising the right to vote on resolutions at company shareholder meetings. It compliments engagement as a key tool for influencing change.
Sustainable Development Goals (SDGs)
The 17 goals set by the United Nations in 2015 are a global framework for achieving a better and more sustainable future. They address the global challenges we face, including those related to poverty, inequality, climate, environmental degradation, prosperity and peace and justice. The UN is targeting completion of all 17 interconnecting goals by 2030.