Responsible investment glossary

We recognise that not everyone uses the same language or terminology when talking about stewardship and responsible investment.

This glossary will explain some of the most common terms.

Carbon neutrality

Carbon neutrality is achieved when the amount of carbon dioxide we release into the atmosphere is no more than the amount we take away. This is also referred to as net zero.

Engagement

Purposeful dialogue between investors and companies on environmental, social and governance (ESG) issues with the intention to influence (or identify the need to influence) company behaviour or improve disclosure.

ESG integration

The systemic and explicit inclusion of environmental, social and governance (ESG) factors into investment analysis and investment decisions.

Exclusions/ Ethical investing

Ethical exclusions funds avoid industries and company practices that cause harm to people or the planet.

Greenwashing

Greenwashing is when a company incorrectly promotes their investment options as being responsible.

Impact investing

Investments made with the intention to generate positive, measurable social and environmental impact alongside financial return.

Net zero

Net zero is achieved when the amount of carbon dioxide we release into the atmosphere is no more than the amount we take away. This is also referred to as carbon neutrality.

Proxy voting

Using our rights as shareholders to vote at the Annual or Extraordinary General Meetings (AGM/EGMs) of the companies we invest in, usually electronically.