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Blended Finance The strategic use of development finance and philanthropic funds to mobilize private capital for sustainable development in emerging markets. It combines concessional public or philanthropic resources with commercial investment.
B-Corp A company certified by B Lab that meets rigorous standards of social and environmental performance, accountability, and transparency. B-Corps balance purpose and profit.
Brown Taxonomy A classification system that identifies economic activities considered environmentally harmful, such as fossil fuel extraction. It serves as the counterpart to green taxonomies. C
Carbon Credits Tradeable certificates representing the right to emit one tonne of CO2 or equivalent greenhouse gas. Organizations can buy credits to offset their emissions or trade them on carbon markets.
Climate Bonds Fixed-income instruments specifically earmarked to raise money for climate-change solutions, including renewable energy, energy efficiency, and clean transportation projects.
CSR (Corporate Social Responsibility) A business model in which companies integrate social and environmental concerns into their operations and stakeholder interactions, going beyond legal compliance to address societal impact. E
ESG (Environmental, Social, Governance) A framework used to evaluate a company's performance on environmental stewardship, social responsibility, and governance practices. ESG criteria are used by investors to screen potential investments.
EU Taxonomy The European Union's classification system establishing a list of environmentally sustainable economic activities. It provides companies, investors, and policymakers with clear definitions of which activities qualify as sustainable.
Externalities Costs or benefits of economic activity that affect third parties who are not directly involved in the transaction. Pollution is a negative externality; education generates positive externalities. G
Green Bonds Debt instruments issued to finance projects with environmental benefits, such as renewable energy, pollution prevention, or biodiversity conservation. They follow standards like the ICMA Green Bond Principles.
Greenwashing The practice of making misleading claims about the environmental benefits of a product, service, or company practice. It creates a false impression of environmental responsibility.
GRI (Global Reporting Initiative) An international organization that provides the world's most widely used standards for sustainability reporting, helping businesses and governments communicate their impact on issues like climate change and human rights. I
Impact Investing Investments made with the intention of generating positive, measurable social and environmental impact alongside a financial return. It challenges the assumption that social and environmental issues should only be addressed by philanthropic donations.
Impact Measurement The systematic process of assessing the social, environmental, and economic effects of an investment, program, or intervention. It uses both quantitative metrics and qualitative evidence.
IRIS+ Metrics The generally accepted system for measuring, managing, and optimizing impact maintained by the Global Impact Investing Network (GIIN). IRIS+ provides standardized indicators across themes like climate, gender, and health. S
SDGs (Sustainable Development Goals) The 17 global goals adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure prosperity for all by 2030.
Social Impact Bonds Pay-for-success contracts where private investors fund social programs upfront and are repaid by government only if the programs achieve agreed-upon outcomes. Also known as Social Impact Contracts.
Stakeholder Capitalism An economic model in which companies consider the interests of all stakeholders -- employees, customers, communities, suppliers, and the environment -- not just shareholders.
SFDR (Sustainable Finance Disclosure Regulation) An EU regulation requiring financial market participants to disclose how they integrate sustainability risks and consider adverse sustainability impacts in their investment decisions. T
Theory of Change A comprehensive description and illustration of how and why a desired change is expected to happen in a particular context. It maps the causal pathways from activities to outcomes and impact.
TCFD (Task Force on Climate-related Financial Disclosures) A framework providing recommendations for companies to disclose climate-related financial risks and opportunities in four areas: governance, strategy, risk management, and metrics and targets.
Triple Bottom Line A framework that expands the traditional measure of success (profit) to include social and environmental dimensions. The three Ps: People, Planet, Profit. No terms found matching your search.