Discover our glossary of relevant sustainable investing insights, terms and concepts for a clearer picture of impact investing
Greenwashing
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
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17 SDGs before 2030?
Financing sources that can help bridge this gap include Multilateral Development banks, private sector investments, sustainable bonds, and SDG-Themed ETFs, among others.
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Intentionality
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.
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Externalities
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.
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ESG Scores
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Return on Invested Capital
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)
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Oceanic Plankton
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Water Sanitation and Hygiene (WASH)
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Taxonomy
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Only 19% of ALL Palm oil production is certified by the Roundtable on Sustainable Palm Oil (RSPO)
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.
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Summary of the IPCC on Climate Change report
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