Tag: investment

  • Thematic investing 

    Thematic investing  Thematic investing is a future-focused investment approach that targets specific trends or themes anticipated to drive long-term growth. This strategy involves researching macroeconomic, geopolitical, and technological trends expected to evolve over time, such as climate change, disruptive technologies, and changing consumer behavior. By focusing on these megatrends, thematic investing aims to capitalize on…

  • 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…

  • Strategic Investment

    Strategic Investment Strategic investment refers to an investment made with the goal of advancing an organization’s long-term objectives, often beyond immediate financial returns. This type of investment typically aligns with a company’s broader mission, such as entering new markets, gaining competitive advantage, securing critical resources, or fostering innovation. Strategic investments are often used in mergers…

  • Stranded assets

    Stranded assets Stranded assets are investments or resources that have lost their value or become obsolete before their expected end of life due to changes in the market, regulations, or technological advancements. These assets are often associated with industries that face significant shifts, such as fossil fuels, where policies and market dynamics favor renewable energy.…

  • 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…

  • SDG Funds

    SDG Funds SDG Funds refer to investment vehicles or financial instruments that specifically aim to support the achievement of the United Nations Sustainable Development Goals (SDGs). These funds allocate capital to projects, companies, or initiatives that contribute to sustainable development in areas such as poverty reduction, clean energy, education, gender equality, and environmental protection. The…

  • Renewable energy investing

    Renewable energy investing Renewable energy investing refers to the practice of investing in energy sources and technologies that are renewable, eco-friendly, and capable of meeting current energy demands without depleting resources for future generations. This includes investments in renewable energy, such as wind, solar, and hydroelectric power, as well as innovations in energy efficiency.  Investors…

  • Return on Capital Employed 

    Return on Capital Employed  Return on Capital Employed (RoCE) is a financial ratio that evaluates a company’s profitability and efficiency in using its capital. It is calculated by dividing operating profit (earnings before interest and taxes) by capital employed (total assets minus current liabilities).  RoCE shows how well a company generates profits from its capital,…