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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
Engaging with countries to promote the SDGs
Engaging with countries to promote the SDGs
A team from Robeco has published a framework that can help investors engage with countries to tackle sustainability challenges.
14-06-2021 | Insight
Show, don't tell – investing in sustainable themes with demonstrated impact
Show, don't tell – investing in sustainable themes with demonstrated impact
The popularity of sustainable investing, especially in public equity markets, has fueled growth in the volume of ESG reporting from companies.
10-06-2021 | Insight
Finding the downside risks in credit with ESG
Finding the downside risks in credit with ESG
Using financially material ESG information leads to better-informed investment decisions and benefits society.
09-06-2021 | Insight