Definitions

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Cc

Clean Revenue Classification System (Clean Revenue Taxonomy) - Developed by Corporate Knights, system that classifies G&S across all sectors having clear environment and - in limited number of well-defined cases, social - benefits. The system is reviewed and updated annually. Aligned with SASB standards, EU Sustainable Finance Taxonomy, CBI Taxonomy and many others.

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by Corporate Knights




Circular Economy - Concept that is based on the principles of designing products and materials where the waste and pollution are incorporated into the life cycle of a product, so that the materials used in the creation of the goods are recovered and regenerated at end of each service life.

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by Corporate Knights




Clean Natural Gas (Green Natural Gas/Renewable Natural Gas RNG) - A gas typically from decomposing organic waste that is purified and can be distributed through existing gas grids.

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by Corporate Knights




Cleantech - Cleantech is an umbrella term referring to the growing offering of products, services, innovations, and technological improvements available which reduce usage of natural resources or negative environmental impact. This is done typically through enhanced energy efficiency, improved or responsible use of natural resources, and/or reducing or eliminating greenhouse gas (GHG) emissions. Examples include water purification, carbon sequestration, enhanced battery storage, and renewable energies.

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by The Green Link




Climate-Related Risks and Opportunities - Climate change presents risks and opportunities to businesses related to the physical impacts of our changing climate (such as extreme weather events) and the transition to a low-carbon economy, transitioning away from fossil fuels to renewable electricity generation and other forms of energy. Climate change will enhance risk related to markets, supply chain, policy/legal and reputation. Businesses who recognize and plan for these risks can capitalize on opportunities for new products and services aligned with the global shift to a low-carbon economy.

Brought to you
by Manifest Climate




Community Grievance Mechanism - A community grievance mechanism is a process for receiving, investigating, responding to, and closing out complaints or grievances from affected communities in a timely, fair, and consistent manner. CGMs work best as integral components of a company’s overall approach to community engagement, not as stand-alone processes or as a substitute for engagement. Without ongoing engagement, a CGM may be the only channel for external stakeholders to access a company, and may be used to make claims that are designed solely to gain company attention or that have already become acute and could threaten operations.

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by Triple R Alliance





Corporate Social Responsibility (CSR) - The company’s approach to managing environmental and social factors that are relevant for a broad range of corporate stakeholders, including employees, customers and communities. ESG is a subset of CSR factors that can impact company value and investor decision-making. CSR factors can evolve rapidly to become ESG factors. Related terms: sustainability, corporate responsibility, corporate citizenship.

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by ESG Global Advisors







Ee

Environmental, Social, and Governance (ESG) - Environmental, social and governance factors that can impact company value and investor decision-making:
  • Governance factors include board quality, independence and accountability; board oversight of executive performance; and board oversight of company strategy, risk management, performance and disclosure, including for environmental and social factors
  • Financially-material environmental and social risks and opportunities such as climate change, water use, human capital management and safety
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by ESG Global Advisors





Expectation Management - To be successful, a company needs to manage stakeholder expectation, which are based on real or assumed prior expectations. prioritize and clarify their customers expectations and then deliver while proactively managing expectations effectively. There are practical ways to address expectations, which have both an internal component (such as avoiding that staff inadvertently raise expectations as well as an external component (such as clarifying when perceived company promise is a real promise).

Brought to you
by Triple R Alliance







Gg

GHG Emissions - Greenhouse gas emissions are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride. Greenhouse gas emissions refer to the production of the above chemical compounds in gaseous form which, within the atmosphere of earth, trap heat and as a result, create a greenhouse effect on the Earth, leading to global warming.

Brought to you
by The Green Link









Ii

Impact Investing - Investing with the specific intention of generating measurable positive social or environmental impacts, while seeking to achieve a financial return that may target either market or below-market rates. The impact criteria define and limit the universe of eligible investments. Investments may focus on themes, such as water or energy efficiency.

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by ESG Global Advisors




Investor Stewardship - Investor Stewardship encompasses investors engaging with companies to promote strong corporate governance practices, in order to create long-term value for shareholders and more widely, society. Examples of effective investor stewardship would be company engagements on specific issues, proxy voting, and engagements on wider public policy issues.

Brought to you
by Millani







Mm

Materiality - In capital markets, an issue is deemed material if there is significant likelihood that a “reasonable investor” would consider it important in their investment decision process about buying, selling or holding a security or when voting.

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by Millani







Ss

Scenario Analysis - Climate scenario analysis explores what a company’s business environment might look like under different climate scenarios, such as deep decarbonization aligned with the Paris Climate Agreement, so as to integrate this information into a company’s strategy. Scenarios provide foresight to consider and manage the complexity that climate change presents to business decisions.

Brought to you
by Manifest Climate




Social Performance / Integrated social performance - Social performance is the sum of a company’s interactions, activities and outcomes that can affect its stakeholders. Achieving good social performance means that a company needs to apply the same focus and rigor to the social aspects of the business as it does to every other part of the business. In other words, every employee and every contractor have a shared responsibility to get it right when it comes to potential social impacts, risks, and opportunities that relate to every company decision.

Brought to you
by Triple R Alliance





Social Performance Management System - A social performance management system is the sum of the components that provide as an effective and organized way of integrating social concerns into management decisions such that social risks are controlled, project impacts are mitigated and relationships are maintained.

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by Triple R Alliance





Social Risk - Social risk is risk to the company (as opposed to risk to people, which is typically referred to as an impact) as a result of behavior and action of stakeholders. Social risk can manifest itself as a result of company policies, approaches or behavior or, alternatively, it can be caused be external factors such as the socio-political context of operations. If not adequately managed, social risk can result in opposition to the project, reputational and legal costs.

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by Triple R Alliance





Socially Responsible Investment (SRI) - An investment strategy that includes or excludes investments based on the application of positive or negative screens, which come from a defined set of values.

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by Millani







Tt

Task Force on Climate-Related Financial Disclosures (TCFD) - In 2017, the G20’s Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released recommendations for climate reporting. The TCFD recommendations are widely recognized as best practice for financial and non-financial businesses reporting on climate change risks and opportunities. The recommendations call for businesses to provide 11 climate-related financial disclosures structured around governance, strategy, risk management, and metrics and targets, covering processes related to climate-related physical and transition risks and opportunities.

Brought to you
by Manifest Climate