Category: Glossary
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Carbon capture and storage
Carbon capture and storage Carbon capture and storage (CCS) is a combination of technologies designed to prevent the release of CO2 generated through conventional power generation and industrial production processes. The technologies employed by CCS, such as absorption, chemical looping, and membrane gas separation, work to capture and store CO2 emissions in underground storage sites…
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Carbon Allowance
Carbon Allowance Carbon allowances represent official permissions granted by a governmental agency, allowing a company to release one ton of CO2 or its equivalent (CO2e). Governments establish emission targets in advance and progressively reduce them over time, aiming to achieve net-zero targets by 2050. These allowances are integral to compliance markets, where they can be…
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Carbon allowances, credits and offsets
Carbon allowances, credits and offsets Carbon allowances and carbon credits/offsets form part of carbon markets that attempt to reduce greenhouse gas emissions by putting a price on them, effectively turning CO2 into a commodity. While the terms are often used interchangeably, they trade on two distinct markets: carbon allowances – an official, or compliance market;…
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Buckminster Fuller Institute
Buckminster Fuller Institute The Buckminster Fuller Institute (BFI) is a non-profit organization dedicated to continuing Fuller’s legacy by promoting comprehensive approaches to addressing complex global challenges such as sustainability, environmental stewardship, social justice, and technological innovation. Buckminster Fuller developed the new discipline of Comprehensive Anticipatory Design Science to support a whole systems approach to “make…
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Biodiversity
Biodiversity According to the WWF, biodiversity is the variety of all life on earth — animals, plants, fungi, and even microorganisms like bacteria that make up our natural world. Each of these species and organisms work together in ecosystems, like an intricate web, to maintain balance and support life. Biodiversity supports everything in nature that…
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Best in class
Best in class The best-in-class approach for sustainable investing involves identifying companies that excel in their respective sector in terms of meeting environmental, social, and governance (ESG) criteria. This strategy adopts a positive company screening selection method, favoring those with the highest ESG ratings or the most robust ESG commitments; without excluding or banning companies…
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Artificial intelligence
Artificial intelligence Artificial intelligence (AI) refers to the simulation of human intelligence in machines. It encompasses a broad range of technologies and techniques that enable machines to perform tasks that typically require human intelligence. These tasks include problem-solving, understanding natural language, recognizing patterns, learning from experience, and adapting to changing circumstances. AI includes algorithms, neural…
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European Green Deal
European Green Deal The European Green Deal, approved in 2020, is a set of policy initiatives by the European Commission with the overarching aim of making the European Union (EU) climate-neutral in 2050. The plan is to review each existing law on its climate merits, and also introduce new legislation on the circular economy (CE), building renovation, biodiversity, farming and innovation. The overarching aim of…
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Exclusion
Exclusion Exclusion refers to the action of prohibiting a company’s securities from being included in a portfolio due to unethical, harmful, or illegal business activities. ESG criteria are utilized to assess a company’s compliance with desired standards, and if found lacking, it may be excluded from investment consideration, thus restricting its access to capital. The…