latamen
Sustainable Investing Glossary

Materiality

The relevance of a sustainability factor to a company’s financial performance.

Financially material ESG factors are factors that could have a significant impact – both positive and negative – on a company’s business model and value drivers, such as revenue growth, margins, required capital and risk. The material factors differ from one sector to another. Examples of factors that can be material are supply chain management, environmental policy, worker health and safety, and corporate governance. 

For sustainability to translate into financial performance, it must have an impact on either the amount of cash flow generated by the company, or the cost of external financing to the company (the weighted average cost of capital).

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
The Big Book of trends and thematic investing
The Big Book of trends and thematic investing
Trends and thematic investment strategies have enjoyed quite some popularity over the past few years.
15-10-2020 | Research
Building more resilient garment supply chains
Building more resilient garment supply chains
Garment industry supply chains have been rocked by Covid-19, but corporate commitments to pay living wages remain on top of the agenda.
09-10-2020 | Insight
Sustainable investing expertise in one publication
Sustainable investing expertise in one publication
Our thought-provoking publication explores sustainable investing from every possible angle.
28-09-2020 | Magazine