Tag: ESG

  • Responsible Purchasing Policy

    Responsible Purchasing Policy A responsible purchasing policy involves embedding sustainability principles into all stages of a company’s procurement process. This includes selecting suppliers, evaluating products or services, and managing the supply chain to ensure economic, environmental, and social criteria are considered. The goal is to minimize negative impacts, promote ethical sourcing, and drive long-term value…

  • Sustainability reporting

    Sustainability reporting Sustainability reporting is the process by which organizations disclose information about their environmental, social, and governance (ESG) impacts, performance, and progress toward sustainability goals. These reports provide stakeholders, including investors, customers, employees, and regulators, with a transparent view of how the organization addresses sustainability issues such as carbon emissions, resource use, waste management,…

  • Sustainable Finance Disclosure Regulation

    Sustainable Finance Disclosure Regulation The Sustainable Finance Disclosure Regulation (SFDR) is a European Union regulation that requires financial market participants and financial advisors to disclose how they integrate environmental, social, and governance (ESG) factors into their investment decisions and advisory processes. Implemented to enhance transparency, the SFDR aims to provide investors with clearer information on…

  • Sustainable Finance Action Plan

    Sustainable Finance Action Plan The Sustainable Finance Action Plan (SFAP) is a major EU policy initiative aimed at promoting sustainable investment across the 27-nations. Introduced by the European Commission in March 2018, the plan responds to the Paris Agreement and the UN’s 2030 Agenda for Sustainable Development, aligning with the European Green Deal’s goal of…

  • Sustainability Supply Chains 

    Sustainability Supply Chains  Sustainability supply chains refer to the practices and processes involved in managing a supply chain with a focus on environmental, social, and economic sustainability. This approach aims to ensure that the entire supply chain—from raw material sourcing to final product delivery—minimizes negative impacts on the environment, upholds ethical labor practices, and promotes…

  • Stewardship code

    Stewardship code A stewardship code is a set of principles and guidelines designed to encourage institutional investors to act as responsible stewards of their investments. It outlines best practices for engaging with companies on issues such as governance, environmental impact, and social responsibility.  The first stewardship code was introduced in the United Kingdom in 2010,…

  • Socially responsible investing

    Socially responsible investing Socially responsible investing (SRI) is an investment strategy that incorporates environmental, social, and governance (ESG) criteria into decision-making to achieve both financial returns and positive impact. SRI investors select companies based on ethical considerations—such as environmental stewardship and human rights—while avoiding those involved in harmful activities like tobacco or fossil fuels. This…

  • Principles for responsible investment

    Principles for responsible investment The Principles for Responsible Investment (PRI) are a set of six voluntary guidelines designed to help investors integrate environmental, social, and governance (ESG) factors into investment decisions. Launched by the UN in 2006, the principles aim to encourage sustainable and responsible investment practices that align financial goals with broader societal and…

  • Principal Adverse Impact

    Principal Adverse Impact Principal Adverse Impact (PAI) indicators refer to a set of metrics that measure the negative effects of investment decisions on sustainability factors such as the environment, social issues, and governance (ESG). These indicators are part of the Sustainable Finance Disclosure Regulation (SFDR) and are designed to help investors understand how their investment…

  • Positive screening

    Positive screening Positive screening is an investment strategy where asset managers actively select companies or assets based on their strong environmental, social, and governance (ESG) performance relative to their peers. This approach identifies businesses with exemplary practices in sustainability, ethical governance, and social responsibility, making them candidates for inclusion in sustainable investment portfolios. Unlike negative…