ESG Investing Glossary

Risk mitigation refers to the actions taken to reduce or minimize the potential negative impact of risks on an individual, organization, or project. It involves identifying, assessing, and managing risks to prevent or lessen their consequences.

Responsible investment, also known as sustainable investment or socially responsible investment (SRI), refers to an investment approach that incorporates environmental, social, and governance (ESG) factors into investment decisions.

A proxy voting adviser, also known as a proxy advisory firm or proxy advisory service, is an independent entity that provides research, analysis, and voting recommendations to institutional investors and asset managers regarding proxy voting matters.

Proxy voting is a process by which shareholders delegate their voting rights to another person or entity, typically a proxy advisory firm or a proxy agent, to vote on their behalf at a company's general meeting or annual general meeting (AGM).

Product liability refers to the legal responsibility that manufacturers, distributors, suppliers, and retailers have for injuries or damages caused by their products. It is a branch of tort law that holds these parties accountable for any harm that may arise from the use of their products.

The Principles for Responsible Investment (PRI) is a global initiative that aims to promote and encourage responsible investment practices among institutional investors. It was launched in 2006 by a group of institutional investors in partnership with the United Nations.

Pollution refers to the introduction of harmful substances or contaminants into the environment, causing adverse effects on the natural ecosystem, human health, and overall well-being. It can take various forms, including air pollution, water pollution, soil pollution, and noise pollution. Pollution is primarily caused by human activities, such as industrial processes, transportation, agriculture, and improper waste disposal.

Physical climate-related risks refer to the potential adverse impacts that arise from climate change on natural and human systems. These risks result from changes in temperature, precipitation patterns, sea-level rise, extreme weather events, and other climate-related phenomena. They can have significant implications for various sectors, including agriculture, infrastructure, health, water resources, and ecosystems.

A minimum variance portfolio is a type of investment portfolio constructed with the goal of minimizing the portfolio's overall volatility or risk. It is designed to achieve the lowest possible level of risk for a given set of securities or assets.

Millennials, also known as Generation Y, are individuals born between the early 1980s and the mid-1990s to early 2000s, although the exact time frame can vary depending on sources.