Tag: investment
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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…
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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…
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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…
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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.…
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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…
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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,…