Tag: Sustainability & Profitability Podcast
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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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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…
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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…
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Perfluoroalkyl and polyfluoroalkyl substances
Perfluoroalkyl and polyfluoroalkyl substances Perfluoroalkyl and polyfluoroalkyl substances (PFAS) are a large group of over 4,000 human-made chemicals known for their heat, water, and grease-resistant properties. Since the 1950s, PFAS have been widely used in consumer goods such as textiles, food packaging, firefighting foams, and cosmetics. Due to their widespread use and persistence, PFAS chemicals…
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Paris-aligned benchmarks
Paris-aligned benchmarks Paris-aligned benchmarks are financial indices designed to align investment portfolios with the climate goals of the Paris Agreement, aiming to limit global temperature rise to well below 2°C, with efforts towards 1.5°C. These benchmarks require a minimum annual decarbonization of 7%, covering Scope 1, 2, and 3 emissions for corporate bonds and sovereign…
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Paris Agreements
Paris Agreements The Paris Agreement is an international treaty adopted in 2015 under the United Nations Framework Convention on Climate Change (UNFCCC). Its primary goalis to limit global warming to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit the increase to 1.5 degrees Celsius. The agreement includes commitments from countries to…
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Net zero emissions
Net zero emissions Net zero emissions refers to the balance between the amount of greenhouse gases emitted and the amount removed from the atmosphere, resulting in no net increase in atmospheric GHG. Achieving net zero involves reducing emissions as much as possible through measures such as transitioning to renewable energy, improving energy efficiency, and adopting…
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Net Zero Carbon Pledge and initiative
Net Zero Carbon Pledge and initiative The Net Zero Carbon Pledge and Net Zero Carbon Initiative both refer to commitments and efforts by organizations, governments, or entities to reduce their carbon emissions to net zero.