ESG Investing Glossary

The Conference of the Parties (COP) is the supreme decision-making body of the United Nations Framework Convention on Climate Change (UNFCCC). It is an international conference where representatives from countries that are Parties to the UNFCCC come together to assess progress in dealing with climate change and negotiate and adopt agreements to address the issue.

Commingled funds, also known as pooled funds or collective investment funds, are investment vehicles that pool together funds from multiple investors to create a diversified portfolio of assets. These funds are managed by professional investment managers or firms who make investment decisions on behalf of the investors.

Collective engagement, also known as collective action or collaborative engagement, refers to the collaborative efforts of multiple stakeholders, such as investors, companies, governments, and civil society organizations, to address environmental, social, and governance (ESG) issues and drive positive change.

In the context of responsible investment, collective engagement involves investors collectively engaging with companies to promote sustainable practices, improve corporate governance, and address ESG risks and opportunities. Rather than engaging individually, investors join forces to amplify their impact and increase their influence on companies' behavior and decision-making processes.

The circular economy is an economic model that aims to redefine how products are designed, produced, consumed, and disposed of in order to maximize resource efficiency and minimize waste. It is a departure from the traditional linear economy, which follows a ''take-make-dispose'' approach, leading to the depletion of resources and generation of significant waste. In contrast, the circular economy seeks to create a closed-loop system where resources are continuously used, reused, and regenerated.

The Climate Disclosure Standards Board (CDSB) is an international organization that focuses on advancing and promoting the integration of climate-related information into mainstream corporate reporting. The CDSB provides a framework for companies to disclose their climate-related financial information in a clear, consistent, and decision-useful manner.

Climate change mitigation refers to efforts and actions taken to reduce or prevent the emission of greenhouse gases (GHGs) into the atmosphere in order to mitigate the causes and impacts of climate change. The goal of mitigation is to limit the extent of global warming and reduce the risks associated with climate change.

Climate change adaptation refers to the actions and strategies undertaken to manage and adjust to the impacts of climate change. As the Earth's climate continues to change, societies and ecosystems need to adapt in order to cope with the challenges and risks associated with these changes.

CDP, formerly known as the Carbon Disclosure Project, is an international non-profit organization that operates a global disclosure system for companies, cities, states, and regions to measure and manage their environmental impacts, particularly in relation to climate change. The organization was founded in 2000 and has become one of the leading initiatives in promoting environmental transparency and corporate sustainability.

A carbon tax is a policy instrument that aims to reduce greenhouse gas emissions by placing a price on carbon dioxide (CO2) and other greenhouse gas emissions. It is designed to create an economic incentive for businesses and individuals to reduce their carbon footprint by making carbon-intensive activities more costly.

Carbon sequestration refers to the process of capturing and storing carbon dioxide (CO2) from the atmosphere and preventing it from being released back into the environment. It is an important strategy in mitigating climate change by reducing the concentration of greenhouse gases in the atmosphere.