Tag: compliance
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Tier 1 Suppliers
Tier 1 Suppliers Tier 1 suppliers are key business partners that directly provide critical inputs, materials, or services to a company. They are the closest link in the supply chain to production and operations, playing an essential role in ensuring product quality and operational continuity. These suppliers often represent a significant portion of procurement expenditure…
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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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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…