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Sustainable Investing Glossary

Footprint

A country, company or person’s impact on the Earth’s resources and on other people.

The (ecological) footprint is a way of measuring how a company or an investment portfolio of companies impacts the planet. There are various ways to determine a footprint. It can be an indicator of, for example, how much productive land, freshwater or seawater a company uses, how much greenhouse gas it emits, or how many trees it needs to cut down to produce a certain item. It also shows the emissions generated from the oil, coal and gas we burn, or how much land is required to absorb our waste. 

A portfolio’s footprint can be reduced by excluding or underweighting sectors or companies with a large footprint, or by engaging with them to lower their footprint.

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
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