- Jersey Finance
- |12/5/25
A-Z of Sustainable Finance – A Guide to Sustainable Finance
Confused about the different terms in sustainable finance?
Our easy-to-use A – Z guide will help to provide clarity on technical definitions and point you to more information.
Use the arrows to navigate from A to Z.
To suggest an additional A-Z item, please contact Tom McKenna.
21 October 2024
A to E
A
Active Ownership
Active Ownership is a method of engaging with companies to influence their environmental, social and governance practices.
B
Biodiversity
Biodiversity is the variety of life in the world or in a particular habitat, crucial for maintaining ecosystem balance.
C
Carbon Offsetting
Carbon Offsetting is a mechanism that enables entities to compensate for offset greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions elsewhere.D
Divestment
Divestment is the process of selling off investments in industries or companies that are not environmentally friendly.E
Environmental, Social, and Governance (ESG)
ESG is a criteria used to evaluate a company’s ethical impact and sustainability practices.F to M
F
Fossil Fuel Divestment
The removal of investment funds from companies involved in extracting fossil fuels.G
Green Bonds
Bonds specifically earmarked to be used for climate and environmental projects.H
Human Capital
The economic value of a worker’s experience and skills, including factors like education and health.I
Impact Investing
Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.Want to learn more? You can read about an event we ran on Impact Investing.
J
Just Transition
Ensuring that the shift to a low-carbon economy is fair and inclusive, addressing the needs of workers and communities.K
Kyoto Protocol
An international treaty that commits state parties to reduce greenhouse gas emissions.L
Low-Carbon Economy
An economy based on low carbon power sources that therefore has a minimal output of greenhouse gas emissions.M
Microfinance
Financial services provided to low-income individuals or those who do not have access to typical banking services.N to S
N
Natural Capital
The world’s stocks of natural assets which include geology, soil, air, water and all living things.OOffsetting
Compensating for emissions by funding an equivalent amount of carbon savings elsewhere.
O
Offsetting
Compensating for emissions by funding an equivalent amount of carbon savings elsewhere.
P
Paris Agreement
An international treaty on climate change aiming to limit global warming to well below two degrees Celsius.
Q
Quadruple Bottom Line
Expanding the traditional company reporting framework to include social, environmental, and economic performance, plus governance.R
Renewable Energy
Energy from sources that are naturally replenishing, such as wind, solar, and hydro power.S
Sustainable Development Goals (SDGs)
A collection of 17 global goals set by the United Nations to achieve a better and more sustainable future for all.Members can discover the impact of investments and financial activities on the SDGs with our SDG Alignment Tool.
T to Z
T
Triple Bottom Line
A framework that incorporates three dimensions of performance: social, environmental, and financial.U
UNPRI (United Nations Principles for Responsible Investment)
A set of six principles that provide a global standard for responsible investing.V
Value Chain
The full range of activities that businesses go through to bring a product or service to their customers, with a focus on sustainability.W
Water Stewardship
The use of water in a way that is socially equitable, environmentally sustainable, and economically beneficial.X
XBRL (eXtensible Business Reporting Language)
A standardised language for the electronic communication of business and financial data.Y
Yieldcos
Companies formed to own operating assets that produce a predictable cash flow, primarily in the renewable energy sector.Z
Zero-Carbon
Achieving net-zero carbon dioxide emissions by balancing emissions with carbon removal or simply eliminating emissions altogether.
