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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
Energy and supply chain shortages emphasize need for Smart solutions
Energy and supply chain shortages emphasize need for Smart solutions
Global electrification is vital if the world is to decarbonize and meet the Paris Agreement.
30-11-2021 | Product webinar
Integrating ESG and carbon metrics alongside active engagements
Integrating ESG and carbon metrics alongside active engagements
The 2021 United Nations’ COP26, took place early November.
29-11-2021 | Insight
Green is the new color, also for emerging markets
Green is the new color, also for emerging markets
Emerging markets have been significantly increasing their investments in green energy generation.
25-11-2021 | Insight