Words matter: Setting standards for responsible investing terms
Inconsistent terminology creates problems for investors, asset managers and regulators
Add BT as a preferred source
INNOVATION often comes with new words and terminology; developments in responsible investments are no exception. As people strive to communicate new sustainable investing concepts and strategies, they sometimes use different words to express similar ideas or the same words to express different ones.
This has led to confusion, particularly around five key approaches:
- Screening
- ESG integration
- Thematic investing
- Stewardship
- Impact investing
The International Organization of Securities Commissions (IOSCO) has issued a call to action, challenging global volunteer standard-setters to develop common sustainable finance-related terms and definitions. The CFA Institute, the Global Sustainable Investment Alliance (GSIA), and Principles for Responsible Investment (PRI) answered IOSCO’s call and teamed up to harmonise their definitions of these critical responsible investment concepts.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
MAS, bank CEOs convene over AI cyberthreats; boards told to own risks, not leave to IT teams
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
LTA circular to potential EV charger owners reveals hundreds of e-mail addresses under carbon copy feature
