Tag: investors
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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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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,…
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Negative screening
Negative screening Negative screening is an investment strategy used by investors to exclude certain sectors, companies, or stocks from their investment portfolios based on specific criteria deemed undesirable. This strategy involves identifying and excluding investments of companies, whose operations are seen as “unsustainable” from an ESG standpoint. Overall, negative screens help to embody the “do…
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Green bonds
Green bonds Green bonds are financial instruments that finance green projects and provide investors with regular or fixed income payments. They emerged in a context where a lot of financing is needed to address environmental challenges. Hence it is critical to connect environmental projects with capital markets and investors and channel capital towards sustainable development,…