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Global Sustainable Investement Alliance

Glossary Best-in-Class/ Refers to investment in sectors, companies or projects selected from a Positive screening defined universe for positive ESG performance relative to industry peers. Divestments When companies are sold from a fund portfolio because they no longer meet the ESG criteria for that fund, or for purely financial reasons. Corporate Strategy employs shareholder power to influence corporate behavior engagement and through direct corporate engagement (i.e. communicating with senior shareholder action management and/or boards of companies), filing or co-filing shareholder proposals, and proxy voting that is guided by comprehensive ESG guidelines. ESG Environment, social, and governance - Refers to the broad set of sustainable investment criteria used alongside traditional financial criteria in managing and selecting investments. Institutional Institutional investors are organisations which pool large sums of investors money; they include pension funds, insurance companies, investment companies, foundations, charities, public authorities and universities. ESG integration Explicit consideration of environmental, social and governance factors in the investment decision-making process. Integration must be demonstrated to be guided by a transparent and systematic process. Impact investing Targeted investments, typically made in private markets, aimed at solving social or environmental problems. Impact investing includes community investing, where capital is specifically directed to traditionally underserved individuals or communities, or financing that is provided to businesses with a clear social or environmental purpose. Mandates/ This category includes investment vehicles where investment policy is Separate/ defined in cooperation with a unique investor. Segregated Accounts Norms-based Screening of investments based on compliance with international norms screening and standards such as issued by OECD, ILO, UN, UNICEF, etc. May include exclusions of investments that are not in compliance with norms or standards or over and underweighting. Sustainable An approach to investment where environmental, social and governance investment factors, in combination with financial considerations, guide the selection and management of investments. SRI SRI, a generic term covering sustainable, responsible, socially responsible, ethical, environmental, social investments and any other investment process that integrates financial analysis with the influence of environmental, social and governance (ESG) issues. Sustainability- Strategy that addresses specific sustainability issues such as climate themed change, food, water, renewable energy/clean technology, agriculture, etc. investment Global Sustainable Investment Review 2012 36


Global Sustainable Investement Alliance
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