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Sustainable Investing Glossary

Environment

The ‘E’ in ESG: one of the three key factors to watch in Sustainable Investing, together with social and governance considerations.

Institutional investors are increasingly working to better understand the potential financial impact of environmental issues on companies in their portfolios. They are calling for greater company attention in areas such as climate change, energy and energy extraction-related risks (such as coal combustion and hydraulic fracturing), energy efficiency, recycling and environmental hazards in the air, water and soil. Investors play an important role in environmental topics by drawing attention to the relevant issue and influencing disclosure. 

The potential negative effects for companies that do not manage environmental risks are increasing costs (e.g. the need to clean up spills or restore the landscape on exploration sites), reputational damage in the event of headline-grabbing polluting incidents, or litigation costs. Integrating environmental considerations into a corporate strategy can also present opportunities. Using resources efficiently will decrease costs, while companies offering innovative solutions, such as printer suppliers helping their customers to get by with fewer and more energy-efficient printers, can gain a competitive edge.

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
Why the global population is unsustainable… because it is falling
Why the global population is unsustainable… because it is falling
A lower world population is great for sustainability, right?
15-09-2020 | Stunning statistics
Four ESG trends that will shape the post-Covid-19 world
Four ESG trends that will shape the post-Covid-19 world
A ‘once in a generation’ shock event, the coronavirus will impact the trajectory of ESG trends substantially.
08-09-2020 | Insight
Improving sustainability in the meat and fish supply chains
Improving sustainability in the meat and fish supply chains
We rely on the quality of the food that we eat – but not all of it is sustainably produced.
31-08-2020 | Insight