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Sustainable and ESG investing terminology

Important information - the value of investments can go down as well as up so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Understanding sustainable and ESG investing

We use the phrase ‘sustainable’ to describe an investment approach that's as concerned with the impact it has on people and the planet, as it is with potential financial returns. Other associated terms you might have heard include socially responsible investing (SRI), ethical investing and environmental, social and governance (ESG) investing. If you’re wondering what some of these mean, you’re not alone. We've pulled together some of the most common jargon in one place, to make it easier to understand.

Common terms to get to grips with

Environmental, social, governance (ESG)
Ethical Investing
Faith-based investing
Green investing / environmental investing
Impact investing
Socially responsible investing (SRI) / responsible investing
Sustainability / sustainable investing

More terms to get to know

Best in class
Corporate governance
Dark green
ESG integration
ESG ratings
Light green
Negative screening
Positive screening

What next?

Explore sustainable and ESG investing

Learn more about the basics of sustainable and ESG investing and find out why it might be right for you.

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Get the latest news and insights from our experts on sustainable and ESG investing.