ESG Investing Glossary

Emission refers to the release or discharge of substances, usually in the form of gases or particles, into the atmosphere or environment. Emissions can occur from various sources, including natural processes and human activities. When discussing environmental impact, emissions are often associated with pollutants that contribute to air pollution, climate change, and other environmental concerns.

An ecosystem refers to a complex network of living organisms, their physical environment, and the interactions between them. It encompasses both the biological and physical components of a specific area or habitat, ranging from a small pond to a vast forest or even the entire planet. Ecosystems can be found in various forms, including terrestrial (land-based), aquatic (water-based), and even aerial (air-based) systems.

Dynamic asset allocation is an investment strategy that involves periodically adjusting the allocation of assets in a portfolio based on changing market conditions, economic factors, and investment opportunities. It aims to optimize the risk and return profile of the portfolio by dynamically shifting investments across different asset classes.

Disposal refers to the process of getting rid of something or getting rid of waste materials in a proper and responsible manner.

Discounted Cash Flow (DCF) is a financial valuation method used to estimate the intrinsic value of an investment by determining the present value of its expected future cash flows.

Digital disruption refers to the transformative impact of digital technologies on industries, businesses, and traditional ways of doing things. It involves the use of digital technologies to create new business models, products, and services that significantly change the competitive landscape and customer expectations.

The Corporate Reporting Dialogue (CRD) is an initiative that brings together major standard-setting organizations and framework providers in the field of corporate reporting. It aims to enhance coherence and consistency in corporate reporting by promoting alignment and collaboration among these organizations.

A controversy case refers to a specific incident or situation that generates significant public debate, criticism, or concern due to ethical, legal, social, or environmental issues. These cases often involve companies, organizations, public figures, or events that have been involved in controversial actions or decisions that have garnered widespread attention and scrutiny.

Controversial sourcing refers to the practice of obtaining goods or materials from sources that are associated with ethical, social, or environmental concerns. It involves situations where the production or acquisition of a product may have negative impacts on human rights, labor conditions, the environment, or communities.

Consumer protection refers to the measures and actions taken to safeguard the rights and interests of consumers in their interactions with businesses and the marketplace. It is a legal and ethical framework that aims to ensure fair and transparent business practices and to protect consumers from fraudulent, deceptive, or harmful activities.