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Impact Insights

Discover our glossary of relevant sustainable investing insights, terms and concepts for a clearer picture of impact investing

Greenwashing

Greenwashing occurs when a company intentionally misrepresents their environmental friendliness in order to deceive consumers. This can include misleading imagery, purposefully vague sustainability practices, or exaggerating already deceptive initiatives.

To be a more conscious investor, be mindful of suspicious sustainability claims and run an ESG due diligence on your portfolio just as comprehensively as you would run a financial due-diligence

17 SDGs before 2030?

In order to meet the UN SDGS by 2030, a large amount of capital is needed, and according to the United Nations Conference on Trade and Development (UNCTAD), there is an immense $2.5 trillion funding gap that needs to be filled for developing countries alone.

Financing sources that can help bridge this gap include Multilateral Development banks, private sector investments, sustainable bonds, and SDG-Themed ETFs, among others.

Intentionality

Intentionality is an investor’s intention to have a positive social and environmental impact through investments, alongside a financial return.

It is determined by using frameworks such as ‘the 5 dimensions of impact’ (by the IMP) to determine the intention of a potential investee to create positive impact.

Circular Economy

Unlike the current linear economy, an economic model in which raw materials are processed, used and then discarded as waste, the circular economy is a global shift in every aspect of our lives that seeks to eliminate waste and extend resources.

Carbon Offsets

Within three to
six months of operation, a wind turbine has offset all emissions from

its construction, to run virtually carbon free for the remainder of its 20
year lifetime

Additionality

According to the Carbon Offset Guide, « GHG reductions are additional if they would not have occurred in the absence of a market for offset credits. ».

Externalities

An unintended consequence of an action/activity that trickles off to a third party that was never directly involved in that activity.

Externalities can be negative or positive: Erosion and chemical runoff caused by building roads, which causes water pollution further downstream, is an example of a negative externality.

ESG Scores

The score reflects how integrated a companies attention to people, planet and economy is within the business model across hundreds of metrics. Institutional investors, asset managers, financial institutions and other stakeholders are increasingly relying on these reports and ratings to assess and measure company ESG performance over time and as compared to peers.

Return on Invested Capital

The return on invested capital (ROIC) ratio helps us understand how well the company is using its capital to generate profit. Analysts also use the ROIC as a ratio to compare its value to other companies.
A simple way to calculate the ROIC is to divide the net operating profit after tax by the invested capital.
ROIC= (Net income- Divident)/ (Debt +Equity)

Social Return on Investment

Unlike ROCI, SROI is the financial value of the social and environmental good that is likely to result from each dollar invested.

SROI=(Social Impact Value – Initial Investment Amount) / (Initial Investment Amount ×100%)

Sustainable Business Canvas

Though it appears to be a Business Model, what you are seeing is in fact a Sustainable Business Model Canvas, SBMC – a second layer to the traditional business pitch which adds a deeper visualization of the business operations that create ESG value or avoid ESG risk.

Oceanic Plankton

With every breath you take, thank the ocean. It is estimated that more than 50% of the oxygen production on Earth comes from the ocean and the majority of this production is from oceanic plankton. In fact, one particular species, Prochlorococcus, produces up to 20% of the oxygen in our entire biosphere. That’s a higher percentage than all of the tropical rainforests on land combined.

Water Sanitation and Hygiene (WASH)

A recent report (click to read further) highlights the significant value that investments in Water, Sanitation and Hygiene (WASH) can have around the world. These investments not only unlock trillions of dollars in economic value, but also could reduce 10% of the global disease burden and unlock substantial health and psycho-social benefits for women and girls while supporting climate adaptation. Those are numerous UN SDGs tackled simultaneously.

NDC: Nationally Determined Contributions

NDCs, Nationally Defined Contributions, are agendas that each country is pursing to address climate change. They contain information on measures for adapting to climate change impacts.

National Day For Truth and Reconciliation.

A day honoring the lost children and survivors of indigenous communities to residential schools. Diversity and dignity are part of our core values, which is why we firmly believe that all individuals deserve to be treated respectfully and with dignity.

Taxonomy

In order to reach climate and energy targets by 2030, it is vital to direct investments towards sustainable projects. That is why the EU created an EU-wide classification system for sustainable activities: the EU Taxonomy. This will provide companies, investors, and policymakers with appropriate definitions for which economic activities can be considered environmentally sustainable.

COP26 – Glasgow

“COP26 in Glasgow IS the last best hope for the world to get its act together” -John Kerry, US Climate Envoyty are part of our core values, which is why we firmly believe that all individuals deserve to be treated respectfully and with dignity.

Only 19% of ALL Palm oil production is certified by the Roundtable on Sustainable Palm Oil (RSPO)

The devastating effects of Palm Oil:
Palm oil plantations have a devastating impact on the world’s ecosystem, it leads to air, soil and water pollution, soil erosion, as well as climate change. Large areas of tropical forests and other ecosystems with high conservation values have been cleared to make room for vast monoculture oil palm plantations. This clearing has destroyed critical habitat for many endangered species—including rhinos, elephants and tigers.

Carbon Capture

Carbon capture alone could achieve 14% of gas emission reduction

Summary of the IPCC on Climate Change report

Though the financial sector has the means to accelerate action towards keeping warming below 1.5 °C, the scientists commenting on the recent IPCC working group report highlighted that those types of investments are about six times lower than they need to be.

Climate Technology

Not to confuse climate tech with clean tech, climate tech concerns explicitly the mitigation and reduction of GHG emissions, while clean tech addresses our impact on the environment. Examples of climate technologies are wind energy, solar power, and hydropower.

World Ocean Day

As the lungs of our planet, the ocean produces at least 50% of the oxygen we breathe and is home to millions of species. The United Nations reports that carbon emissions from human activity are causing ocean warming, acidification, and oxygen loss.