Diving Deeper
Background to major terms used
Impact investing
A general investment strategy seeking to generate financial returns while also creating a positive social or environmental impact. Investors who follow impact investing consider a company’s commitment to corporate social responsibility or the duty to positively serve society as a whole.
Background to major terms used
Greenwashing
Greenwashing is when a company makes a false claim that they or its products are environmentally friendly, often spending more time and money on marketing itself as such rather than reducing its environmental impact. Effectively misleading customers who look to buy goods and services from eco-conscious brands.
Background to major terms used
ESG Investing
This is when investors observe a company’s environmental, social and governance (ESG) factors before providing funding to it.
Environmental — ecological protection. Investing in companies fighting climate change. Additionally, this can include reducing pollution and deforestation, fighting water scarcity and encouraging biodiversity.
Social — how a company invests its own money and resources. Sustainable investors look for how companies treat their employees, their stance on human rights and how they interact with their surrounding communities.
Governance — how a business is run, with a focus on encouraging positive change. It promotes full disclosure of a company’s shareholder rights, possible political contributions, diversity and pay in leadership, and the overall condition of their management.
Background to major terms used
Circular economy
The principle of a circular economy is to reduce waste to a minimum. As a product reaches the end of its life, the materials are kept and reused wherever possible, productively being used over and over, creating further value through sharing, leasing, reusing, repairing, refurbishing, and recycling for as long as possible. Our current economy is linear, we use materials from the earth, make products with them and when we are finished with them, we throw them away. Watch this video for more information about how a circular economy works: https://youtu.be/zCRKvDyyHmI
Background to major terms used
The Sustainable Development Goals
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.
Countries have committed to prioritize progress for those who’re furthest behind. The SDGs are designed to end poverty, hunger, AIDS, and discrimination against women and girls.
The creativity, knowhow, technology and financial resources from all of society is necessary to achieve the SDGs in every context.