Glossary

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Active Ownership

This refers to investors addressing concerns of environmental, social and governance (ESG) issues by voting on such topics or engaging corporate managers and boards of directors on them. Active ownership is utilized to address business strategy and decisions made by the corporation in an effort to reduce risk and enhance sustainable long-term shareholder value.

Asset Overlays This refers to exclusionary screens that do not just apply to a specific sustainable investment product, but instead to the whole asset base of an asset manager or institutional investor. Often such criteria apply to controversial weapons such as cluster bombs, land mines and nuclear weapons.
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Best In Class / Positive Screening Approach in which a company's or issuer's environmental, social and governance (ESG) performance is compared with the ESG performance of its peers (i.e. of the same sector or category) based on a sustainability rating. All companies or issuers with a rating above a defined threshold are considered as investable. The threshold can be set at different levels (e.g. 30% best performing companies or all companies that reach a minimum ESG score).
Blended Finance Blended finance refers to the complementary use of grants (usually from public sources) and non-grant financing from private and/or public sources. Such structures are used to make infrastructure and sustainability projects that would otherwise not be financially sustainable attractive for private investors. The IFC uses the term blended finance to distinguish it from ‘concessional finance’, which requires a minimum 25% grant element. Although blended finance has a concessional component, the subsidy portion of the investment is minimised in order to avoid crowding out private financing.

 

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Carbon Finance

Generic term for financial services related to mitigation of and adaptation to climate change. It specifically refers to investments in greenhouse gas emission reduction projects and the related creation of CO2-certificates, financial instruments that are tradable on carbon markets.

Carbon footprint of a portfolio A carbon footprint refers to the entire greenhouse gas (GHG) emissions of a portfolio. It is calculated in tons of CO2 equivalents per million USD invested (tCO2e/mUSD). It expresses the amount of annual GHG emissions which can be allocated to the investor per million USD invested in a portfolio and is therefore probably the most intuitive carbon metric available at the portfolio level.
Carbon Neutral This occurs when an organisation’s net carbon emissions is equal to zero. The process requires measuring total CO2 emissions, taking active steps to reduce emissions where the company can, and then purchasing CO2-certificates to offset CO2 emissions that cannot be eliminated from a company's operations. The CO2-certificates contribute to financing projects reducing CO2-emissions (i.e. by replacing fossil power generation with renewable energy projects).
Climate-alignment The climate alignment of a portfolio refers to the reduction of the greenhouse gas emissions of a portfolio (i.e. of the issuers it contains) in line with global climate goals.
Community Investment Directing investment capital to communities that are underserved by traditional financial services institutions. Generally provides access to credit, equity, capital, housing, and basic banking products that these communities would otherwise lack. The term usually refers to investments in developed countries.
Corporate Governance / Governance Factors (G of ESG) Governance factors within ESG criteria in the context of investing refer to the system of policies and practices by which a company is directed and controlled. They include but are not limited to transparency on Board compensation, independence of Boards and shareholder rights.
Corporate Social Responsibility (CSR) / Corporate Responsibility (CR) This term refers to the commitment of an organisation, beyond what is required by law, to ensure that the social, economic and environmental impacts of their actions create a net benefit to communities and society. This is founded on the belief that all corporations have a ‘duty of care’ to all their stakeholders in every area of their business operations and that being a responsible citizen improves the long-term business success of a company.

 

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Development Finance / Official Development Finance Official Development Finance (ODF) describes funds from official development finance institutions to developing nations with the objective of reducing poverty and developing the economy of recipient countries. This includes (a) bilateral official development assistance (ODA), (b) grants and concessional and non-concessional development lending by multilateral financial institutions, and (c) other official flows for development purposes (including refinancing Loans) which have too low a Grant Element to qualify as ODA.
Development Finance Institution DFIs occupy the space between public aid and private investment. They are financial institutions, which provide finance to the private sector for investments that promote development. They focus on developing countries and regions where access to private sector funding is limited. They are usually owned or backed by the governments of one or more developed countries.
Development Investments / Investments for Development Term established by SFF to describe investments with a clear intention to improve the social/environmental/economic situation in developing and emerging markets while targeting market or above-market returns.
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Engagement Clearinghouse Platform offered by the Principles for Responsible Investments (PRI) for institutional investors and asset managers to collaborate on engagement activities with investee companies. An investor posts planned engagement activities and seeks other investors to co-sign letters or actively contribute to engagement activities. Accessible for PRI signatories only.
Engagement overlay service A third-party service that engages investee companies on ESG issues on behalf of shareholder clients.
Environmental Factors (E of ESG) Environmental factors within ESG criteria in the context of investing include but are not limited to the environmental footprint of a company or country (e.g. energy consumption, water consumption), environmental governance (e.g. environmental management system based on ISO 14 001) and environmental product stewardship (e.g. cars with low fuel consumption).
Environmental Lending Refers to lending activities for environmental projects or companies often provided by multinational development banks. The term also covers lending activities with clear procedures to assess environmental risks of projects or companies. In some cases, banks provide preferential interest rates for environmental projects (i.e. environmental mortgages for low energy buildings).
Equator Principles The Equator Principles is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in project finance and is primarily intended to provide a minimum standard for due diligence to support responsible risk decision-making.
ESG - Environment, Social and Governance ESG stands for Environmental (e.g. energy consumption, water usage), Social (e.g. talent attraction, supply chain management) and Governance (e.g. remuneration policies, board governance). ESG factors form the basis for the different SI approaches.
ESG Analysis This analysis includes collecting information on how an investment target manages environmental, social and governance factors. When an investment institution wishes to track how potential investments (i.e. companies, countries and issuers) actively manage ESG risks and opportunities they carry out an ESG Analysis.

There is growing evidence suggesting that companies with a strong performance in managing environmental, social and governance factors manage their risks and opportunities more effectively and have lower costs of capital. ESG factors, when integrated into investment analysis and decision-making, may therefore offer investors better insights into opportunities and risks.
ESG Engagement Engagement is an activity performed by shareholders with the goal of convincing management to take account of environmental, social and governance criteria. This dialogue includes communicating with senior management and/or boards of companies and filing or co-filing shareholder proposals. Successful engagement can lead to changes in a company's strategy and processes so as to improve ESG performance and reduce risks.
ESG Integration The explicit inclusion by investors of ESG risks and opportunities into traditional financial analysis and investment decisions based on a systematic process and appropriate research sources.
ESG Voting This refers to investors addressing concerns of environmental, social and governance (ESG) issues by actively exercising their voting rights based on ESG principles or an ESG policy.
Ethical Investment Investments where the main motivation is aligning the ethical values of an organisation or a person with investments. In comparison to sustainable investments which are based on the conviction that an active management of environmental, social and governance risks and opportunities improves the long-term performance of a company, an ethical investment is mainly guided by ethical codes, religious beliefs or personal values and is often carried out using exclusionary screening.
Eurosif Eurosif is the European association whose mission is to promote sustainability through European financial markets. It works as a partnership of several Europe-based national Sustainable Investment Forums (SIFs).  Eurosif engages in a range of promotional activities such as public events or discussion fora, both with the industry and policy-makers. www.eurosif.org
Exclusions An approach excluding companies, countries or other issuers based on activities considered not investable. Exclusion criteria (based on norms and values) can refer to product categories (e.g. weapons, tobacco), activities (e.g. animal testing), or business practices (e.g. severe violation of human rights, corruption). 
Exclusion Criteria Activities on the grounds of which a company, country or issuer is considered as not investable. Exclusion criteria can refer to product categories (i.e. weapons, tobacco) activities (i.e. animal testing) or practices (i.e. severe violation of human rights, corruption). They can also be based on personal values (i.e. gambling) or on risk considerations (i.e. nuclear power).
Exclusionary Screening / Negative Screening An investment strategy excluding companies, countries or issuers on the grounds of activities considered as not investable. Exclusion criteria can refer to product categories (e.g. weapons, tobacco) activities (e.g. animal testing) or practices (e.g. severe violation of human rights, corruption). They can also be based on personal values (e.g. gambling) or on risk considerations (e.g. nuclear power).
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Financial Centres For Sustainability The Financial Centres for Sustainability (FC4S) Network is a partnership between financial centres and the United Nations Environment Programme, with the objective to exchange experience and take common action on shared priorities to accelerate the expansion of green and sustainable finance. The long-term vision of the FC4S Network is rapid global growth of green and sustainable finance across the world’s financial centres, supported by strengthened international connectivity, and a framework for common approaches. www.fc4s.org
Fiduciary Duty / Responsibility In the institutional investment context, trustees of pension funds owe fiduciary duties to beneficiaries to exercise reasonable care, skill and caution in pursuing an overall investment strategy suitable to the purpose of the trust and to act prudently and for a proper purpose. The explicit legal nature of fiduciary duty varies depending on the country of origin. While most institutional investment funds strive to create financial benefits for their beneficiaries, it is also possible for trust deeds explicitly to require trustees to consider ESG factors in investments. Given the increasing evidence supporting the materiality of ESG issues, some legal experts conclude that it is part of the fiduciary duty of a trustee to consider such opportunities and risks in investment processes.
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GEAK Gebäudeausweis der Kantone (GEAK) is a Swiss tool to measure and indicate the energy consumption of a building. It forms an easy tool to compare the energy efficiency of different buildings both for buyers and investors. www.geak.ch
Global Impact Investing Network (GIIN) The GIIN is a not-for-profit organisation that is committed to increasing the scale and effectiveness of impact investing. www.thegiin.org
Global Impact Investing Ratings System (GIIRS) A system for assessing the social and environmental impact of companies and funds. www.giirs.org
Global Reporting Initiative (GRI) The Global Reporting Initiative is the most widely used global framework for the standardized reporting of economic, social and environmental performance. The GRI guidelines are created through a multi-stakeholder, consensus-seeking process that involves an international network of business, civil society, labour and professional institutions. www.globalreporting.org
Global Sustainable Investment Alliance (GSIA) A Global network of membership-based sustainable investment organisations. GSIA’s purpose is to extend the impact and visibility of sustainable investment organisations on a global level. GSIA was founded by Eurosif together with other regional and national SIFs. www.gsi-alliance.org
Governance / Corporate Governance Factors (G of ESG) Governance factors within ESG criteria in the context of investing refer to the system of policies and practices by which a company is directed and controlled. They include, but are not limited to, transparency on Board compensation, independence of Boards and shareholder rights.
Green Bonds Green bonds are broadly defined as fixed-income securities that raise capital for a project with specific environmental benefits. The majority of green bonds issued to date have raised money for renewable energy projects, energy efficiency measures, mass transit and water technology. Most green bonds have been either plain vanilla treasury-style retail bonds (with a fixed rate of interest and redeemable in full on maturity), or asset-backed securities tied to specific green infrastructure projects.
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ILO Conventions ILO conventions encompass international labour standards which are integrated into legally binding international treaties, setting out basic principles and rights at work. Those legal instruments are ratified in all participating countries. The eight fundamental conventions cover the topics freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labour; the effective abolition of child labour; and the elimination of discrimination in respect of employment and occupation. They are frequently used as the basis for exclusion and engagement approaches.
Impact Investing Investments intended to generate a measurable, beneficial social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below-market to above-market rates, depending upon the circumstances. SSF considers impact investments as those having three main characteristics: intentionality, management and measurability.
Institutional Investors Group on Climate Change (IIGCC) A forum for collaboration on climate change for investors. 
IIGCC provides investors with a collaborative platform to encourage public policies, investment practices, and corporate behaviour that address long-term risks and opportunities associated with climate change. www.iigcc.org
Integrated Reporting An integrated report (IR) combines a company's financial report and sustainability report in order to give a concise view about how an organisation’s strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term.
Investments for Development / Development Investments Term established by SFF to describe investments with a clear intention to improve the social/environmental/economic situation in developing and emerging markets while targeting market or above-market returns.
IRIS IRIS is a catalogue of generally accepted performance metrics that impact investors use to measure social, environmental, and financial success, evaluate deals, and improve the credibility of the impact investing industry. The catalogue is prepared by the Global Impact Investing Network (GIIN), a non-profit organisation dedicated to increasing the scale and effectiveness of impact investing. www.iris.thegiin.org
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Materiality In the sustainability context, information is material if there is a clear link to the financial performance of a company.
Microcredit Refers to small loans from a microfinance institution granted to lower income entrepreneurs in developing and emerging market countries. These loans contribute to the development of local economies and therewith contribute to creating jobs and reduce poverty.
Microfinance A range of financial tools (loans, savings, money transfers, etc.) provided by microfinance institutions and designed for people who do not have access to the traditional banking system.
Microfinance Institutions Organisations that offer microcredits and other microfinance products to companies and individuals in developing and emerging market countries.
Microinsurance Microinsurance products are designed for individuals in developing and emerging market countries who do not have access to traditional insurance services.
Minder Initiative Swiss referendum launched by a politician named Minder with the aim to reduce wage levels at Swiss companies. The adoption of the 'Minder Initiative' in March 2013 resulted in an Implementing Ordinance (VegüV), temporarily defining the implementation of this new article of the Swiss Constitution. The main principles are: annual mandatory votes for pension funds on board remuneration of Swiss companies and transparent reporting on votes, no severance payments for governing officers, regulation in articles of association of credits and pensions payable to governing officers, and custodial sentence for persons violating these principles.
Mission Based Investing The incorporation of an organisation’s mission into its investment decision-making process. Most often used in reference to foundations and other non-governmental organisations working for social or environmental change. Mission-based investing ensures that organisations’ investments are aligned with the overall goals of the organisation itself and are helping, not hindering, the achievement of those goals.
Montreal Carbon Pledge Launched in September 2014, signatories of the Montreal Carbon Pledge commit to measure and publicly disclose the carbon footprint of their investment portfolios on an annual basis. www.montrealpledge.org
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Natural Capital Finance Alliance The Alliance and its Secretariat was originally formed to support the signatories of the Natural Capital Declaration (NCD), which was launched at the Rio+20 conference in 2012. The declaration has been signed by the CEOs of more than 40 financial institutions from around the world. It formalises their commitment to the integration of natural capital considerations into financial sector reporting. www.naturalcapital.finance
Negative Screening / Exclusionary Screening An investment strategy excluding companies, countries or issuers on the grounds of activities considered as not investable. Exclusion criteria can refer to product categories (e.g. weapons, tobacco) activities (e.g. animal testing) or practices (e.g. severe violation of human rights, corruption). They can also be based on personal values (e.g. gambling) or on risk considerations (e.g. nuclear power).
Norms-based Screening Screening of investments against minimum standards of business practice based on national or international standards and norms such as the ILO conventions, the OECD Guidelines for Multinational Enterprises, the UN Global Compact or the UN Guiding Principles on Business and Human Rights.
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OECD Guidelines for Multinational Enterprises This is a comprehensive set of government-backed recommendations on responsible business. The governments who aim to adhere to the Guidelines intend to encourage and maximise the positive impact multinational enterprises can make to sustainable development and enduring social progress. www.oecd.org/corporate/mne
Official Development Finance / Development Finance Official Development Finance (ODF) describes funds from official development finance institutions to developing nations with the objective of reducing poverty and developing the economy of recipient countries. This includes (a) bilateral official development assistance (ODA), (b) grants and concessional and non-concessional development lending by multilateral financial institutions, and (c) other official flows for development purposes (including refinancing Loans) which have too low a Grant Element to qualify as ODA.
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Paris Agreement Agreed at COP21 in paris in 2015, the Paris Agreement's central aim is to strengthen the globalr esponse to the threat of climate change by keeping a global temperature rise this century well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5°C.
Portfolio Carbon Footprint An aggregation of the carbon footprint of individual positions within an investment portfolio, relative to the share of the companies held by this portfolio. As a measure to assess the climate risk of an investment portfolio, this key performance indicator is used by institutional investors aiming to offer transparency and reduce the carbon intensity of their portfolios.
Positive Screening / Best In Class Investment approach based on a sustainability rating in which a company's or issuer's environmental, social and governance (ESG) performance is compared with the ESG performance of its sector peers. All companies with a rating above a defined threshold are considered as investable. The threshold can be set at different levels (i.e. 30% best companies eligible).
Principles for Responsible Investment (PRI) The United Nations-supported Principles for Responsible Investment (PRI) Initiative is an international network of investors and asset managers working together to put the six Principles for Responsible Investment into practice. Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision making and ownership practices. Asset owners, investment managers and service providers can become signatories which obliges them to annually report on their progress regarding the six principles covering ESG integration, active ownership and promotion of sustainable investments. www.unpri.org
Principles for Sustainable Insurance (PSI) Launched by UNEP FI in 2012, The Principles for Sustainable Insurance (PSI) serve as a global framework for the insurance industry to address environmental, social and governance risks and opportunities. The purpose of the PSI Initiative is to better understand, prevent and reduce environmental, social and governance risks, and better manage opportunities to provide quality and reliable risk protection. www.unepfi.org/psi/
Proxy Voting A ballot cast by one person on behalf of another. One of the benefits of being a shareholder is the right to vote on certain corporate matters. Since most shareholders cannot, or do not want to, attend the annual and special meetings at which the voting occurs, corporations provide shareholders with the option to cast a proxy vote. Shareholders receive a proxy ballot in the mail along with an informational booklet called a proxy statement describing the issues to be voted on. Shareholders return a form by mail agreeing to have their vote cast by proxy.
Public Private Partnership (PPP) Typically medium to long-term arrangements between the public and private sectors, whereby some of the service obligations of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services. In the finance context, PPPs often form the basis for long-term investments by the private sector in infrastructure or other services of the public domain.
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Responsible Investment / Sustainable Investment Responsible investment (analogous to sustainable investment) refers to any investment approach, integrating environmental, social and governance factors (ESG) into the selection and management of investments. There are many different forms of responsible investing, such as best-in-class investments, ESG integration, exclusionary screening, thematic investing and impact investing. They are all components of responsible investments and have played a part in its history and evolution.
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Science-based targets The term "Science-based targets" is currently mostly applied in the context of climate targets. Such taregts provide a clearly defined pathway for companies to reduce greenhouse gas (GHG) emissions. According to the Science-based targets initiative, targets are considered "science-based" if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement —limiting global warminging to well below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. the concept can also be applied to other sustainability targets.
Scope 1,2,3     

• Scope 1: All direct Green House Gas emissions.
• Scope 2: Indirect Green House Gas emissions from consumption of purchased electricity, heat or steam.
• Scope 3: Other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc.

Source

  • Scope 1: Emissions from sources owned or controlled by the company that is measuring emissions
  • Scope 2: Emissions associated with energy purchased by the company that is measuring emissions
  • Scope 3: Emissions related to upstream elements of the supply chain (eg. Purchased goods and business travel) and downstream elements (use and end-of life treatment sold products) of a company that is measuring emissions.

Source: SSF Market Study 2021

Shareholder Activism Investment strategy that employs shareholder power to influence corporate strategy and behaviour. Done by submitting and voting on proxy resolutions that influence a company's policies and practices.
Shareholder Proposal / Resolution A legal right of shareholders to create a proposal for change in corporate policies and actions. Shareholder proposals are tools of corporate engagement and shareholders reserve the right to circulate proposals, and vote on them at the company’s Annual General Meeting (AGM). For details on voting, see ‘proxy voting’.
Social Factors (S of ESG) Social factors within ESG criteria in the context of investing include, but are not limited to, worker rights, safety, diversity, education, labour relations, supply chain standards, community relations, and human rights.
Socially Responsible Investing (SRI) Socially Responsible Investing (SRI) is the term previously used for sustainable or responsible investing. SRI had its origin in the Anglo-Saxon investment world, where it originally referred to investments based on exclusionary screening and later to investments with a best-in-class approach and other forms of sustainable investments. Some players still use it as a generic term for sustainable investing.
Stranded Assets Stranded assets refers to a scenario in which the value of fossil fuel reserves falls due to rising operational costs associated with carbon prices. Fossil fuel assets could become ‘stranded’ as production becomes unprofitable. The possibility of increased regulation and public pressure, both domestic and international, poses additional risks. The share price of fossil fuel companies could diminish considerably if political pressure to reduce carbon emissions strengthens. The risk of stranded assets is a growing concern for investors.
Sustainability Index / Benchmark A sustainability index / benchmark is a tool to measure the value of a section of the stock market. It is computed from the prices of stocks selected by applying a sustainable investment approach. Investors use this tool to describe the market and to compare the return on specific investments.
Sustainability Ratings Ratings reflecting a company's/country's/fund's performance with regards to environmental, social and governance (ESG) factors. Sustainability ratings enable investors to gain a quick overview of the sustainability performance of a company/country/fund and are the basis for a best-in-class investment approach.
Sustainability Research Provider / Sustainability Rating Provider Organisation providing research and/or ratings on the sustainability performance of companies, issuers, countries or sectors. Most investors and asset managers use such third-party information when preparing sustainable investment products.
Sustainable Balancing economic ecological and social goals in such a way that the people living on our planet today can meet their needs without compromising the ability of future generations to meet their own needs. (WCED)
Sustainable Assets Under Management Widely applied key performance indicator referring to the total volume of sustainable investments of an investor, asset manager or country. Often expressed as a percentage of total assets under management.
Sustainable Development Goals (SDGs) The SDGs are 17 goals aiming to catalyse sustainable development set by the UN in 2015. 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 Sustainable finance refers to any form of financial service with the objective of supporting the transition to a sustainable economy and society by integrating environmental, social and governance (ESG) factors into business and investment decisions. Such finance aims for the lasting benefit to clients, society at large and the planet.
Sustainable Finance Geneva (SFG) Sustainable Finance Geneva is an association of investment professionals with an interest in sustainable finance. SFG's objectives are to raise key financial players' awareness about sustainable investing through communication, training and networking and to promote the Geneva financial centre with its capacities in sustainable finance. SFG is a network partner of SSF. www.sfgeneva.org
Sustainable Financial Centre A sustainable financial centre is a financial marketplace that contributes to sustainable development and value creation in economic, environmental and social terms. In other words, one that increases prosperity and economic competitiveness both today and in the long term, while aiming for the lasting benefit of clients, scoeity at large and the planet.
Sustainable Investment (SI) Sustainable investment (analogous to responsible investment) refers to any investment approach integrating environmental, social and governance factors (ESG) into the selection and management of investments. There are many different approaches of sustainable investing, including best-in-class, ESG integration, exclusions and impact investing. 
Sustainable Investment Forum (SIF) A sustainable investment forum is an association promoting sustainable investments and finance in a national or multinational financial market. There are many SIFs in Europe, most of which are partners and founders of Eurosif. Eurosif together with other regional and national SIFs has founded the Global Sustainable Investment Alliance (GSIA) to align activities and gain a market overview on sustainable investments globally.
Sustainable Investment Fund Investment fund based on an investment process integrating ESG criteria in different forms (i.e. best-in-class, ESG integration, exclusionary screening)
Sustainable Investment Mandate Investment mandate based on an investment process integrating ESG criteria in different forms (i.e. best-in-class, ESG integration, exclusionary screening)
Sustainable Thematic Investments / Thematic Investing Investment in businesses contributing to sustainable solutions, both in environmental or social topics. 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. 
SVVK - ASIR The Swiss Association for Responsible Investments (SVVK - ASIR) is an association of large pension funds aiming to provide services to its members that enable them to invest responsibly. This entails the inclusion of ESG criteria in their investment decisions, where the association supports its members through norms-based and product-based portfolio screening and engagement. The normative standards applied are the Swiss constitution and Swiss law, ILO conventions and the Global Compact. The association was founded in December 2015 and has nine members as of 2018.
Swiss Federal Act on War Material (WMA) The WMA is a piece of Swiss legislation in force since 1998. This Act focuses on the fulfilment of Switzerland's international obligations and the respect of its foreign policy principles by means of controlling the manufacture and transfer of war material and related technology. At the same time, it aims at maintaining Swiss industrial capacity adapted to the requirements of its national defense. The WMA was amended in 2013 to include the prohibition of the production as well as the direct financing of controversial weapons, encompassing cluster munition, anti-personal mines, as well as biological, chemical and nuclear weapons. Switzerland is one of the 13 countries regulating the financing of controversial weapons.
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Thematic Investing / Sustainable Thematic Investing Investment in businesses contributing to sustainable solutions both in environmental or social topics. 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.
Thun Group of Banks The "Thun Group of Banks" is an informal group of bank representatives that have been discussing the meaning of the "Guiding Principles for the implementation of the United Nations 'Protect, Respect and Remedy' Framework on Business and Human Rights" ("Guiding Principles") in regards to universal banks and how they could be applied in relation to banking activities. Thun Group Discussion Paper
Triple Bottom Line A holistic accounting framework with three parts: environmental, social and financial. These three divisions are also called the three Ps: people, planet and profit, or the "three pillars of sustainability".
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United Nations Environment Program; Finance Initiative (UNEP FI) UNEP FI is a global partnership between UNEP and the financial sector founded in 1992. UNEP FI’s mission is to bring about systemic change in finance to support a sustainable world, and is highlighted in its motto, “Changing finance, financing change”. Member organisations, representing banking, insurance and investment, recognize sustainability as part of a collective responsibility and support approaches to anticipate and prevent potential negative impacts of the financial industry on the environment and society. UNEP FI develops selective collaborations with other partner organisations, in order to increase awareness and raise support for critical activities. www.unepfi.org
United Nations Global Compact (UNGC) This UN initiative aims to encourage businesses worldwide to align their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. Companies signing the UNGC commit to regularly reporting on progress on the ten principles. www.unglobalcompact.org
UN Guiding Principles on Business and Human Rights The Guiding Principles for Business and Human Rights are meant to support the implementation of the United Nations “Protect, Respect and Remedy” Framework. This set of guidelines seeks to provide a global standard for preventing and addressing the risk of adverse human rights impacts linked to business activity. They were proposed by the UN Special Representative for Business and Human Rights, John Ruggie, and endorsed by the UN Human Rights Council in June 2011. As they cover all areas of business, they are also applicable to the financial sector.
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Values-based Exclusions This refers to exclusions that are based on personal values (as opposed to exclusions based on risk considerations or the violation of international norms). Prominent examples are exclusions of companies involved in gambling, production of weapons or alcohol.

Source: BNP Paribas, FNG, GIIN, pwc, Responsible Investment Association (RIA), RI, SSF, Worldbank, OECD, your SRI, KPMG, WCED

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