ESG Investing Glossary

Materiality refers to the significance or importance of information or factors in the context of a particular subject or decision-making process. In various fields, including finance, sustainability, and corporate reporting, materiality plays a crucial role in determining what information should be disclosed, considered, or acted upon.

In the context of finance and investment, a mandate refers to the authority or permission given to an individual or entity to manage a specific investment portfolio or asset on behalf of a client or organization. It sets out the guidelines, objectives, and constraints within which the manager operates.

The management gap refers to the discrepancy or difference between the skills, competencies, and capabilities of current managers and the skills required to effectively manage and lead in a changing business environment. It is often used to describe the challenge organizations face when their management practices and skills are not aligned with the evolving needs of the organization or industry.

Manageable risks are risks that can be identified, assessed, and effectively managed or mitigated by individuals, organizations, or institutions. These risks are typically within the control or influence of the risk owner, and appropriate measures can be taken to reduce their potential negative impact.

Longevity refers to the length of an individual's life, typically measured in terms of the number of years lived. It is a concept that is often associated with discussions about aging, healthcare, and population demographics.

A living wage is a wage level that enables workers to meet their basic needs and maintain a decent standard of living. It goes beyond the minimum wage, which is often set at a level that covers only the basic subsistence needs of workers.

Labour rights refer to the fundamental rights and protections of workers in the workplace. These rights are based on the principles of social justice, equality, and human dignity.

The International Renewable Energy Agency (IRENA) is an intergovernmental organization that promotes the widespread adoption and sustainable use of renewable energy worldwide.

The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, and other stakeholders. It was an international organization that existed from 2010 to 2020 and worked to promote integrated reporting as a means to enhance corporate reporting and transparency.

The International Corporate Governance Network (ICGN) is a global organization that promotes and facilitates effective corporate governance practices worldwide. It is a leading authority in the field of corporate governance, bringing together investors, companies, and governance experts to collaborate and advocate for responsible and sustainable corporate practices.