Glossary
Blue economy Economic activity related to oceans, seas and coasts, such as renewable energy, fishing and tourism, and the need to encourage better stewardship of ocean resources.
Blue bond Bonds that raise capital for projects with marine or ocean-based benefits. The first was issued in 2018.
Circular economy An economy in which the linear ‘take, make, dispose’ model of production is replaced with a system where materials never become waste and nature is regenerated. Products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling and composting.
Climate adaptation Measures undertaken by businesses and governments to build resilience to the expected impacts of climate change. Examples include building defences against extreme weather events, relocating operations and developing early warning systems.
Climate transition plan A time-bound action plan that outlines how an organisation will pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations.
Corporate PPA / Private PPA The name given to a power purchase agreement between the seller of renewable electricity from a specific project and a buyer that is not a utility. This is often a company or local authority whose primary business is not the purchase and sale of energy and that historically would have bought electricity from a utility but that wants to source a set percentage of its power directly from identifiable renewable energy sources.
Corporate Sustainability Reporting Directive (CSRD) An EU directive requiring companies to report on how sustainability issues, such as climate change, impact their business and how their operations in turn affect people and the planet. The regulation updates previous corporate sustainability reporting under the 2014 Non-Financial Reporting Directive (NFRD).
Corporate Sustainability Due Diligence Directive (CSDDD) An EU directive aimed at anchoring human rights and environmental considerations in companies’ operations and corporate governance, including in their value chains inside and outside of Europe.
Greenwashing This is also known as sustainability washing. It refers to when an unsubstantiated or misleading claim is made about the environmental benefits of a product, service, technology or company practice to make a company appear to be more environmentally friendly than it really is.
Environment, social and governance (ESG) A framework used to assess a company’s impact in areas such as climate change, relationships with employees and communities, and leadership and shareholder rights.
EU Taxonomy A classification system developed by the EU to identify and define economic activities as environmentally sustainable according to one or more of six objectives: climate change mitigation; climate change adaptation; sustainable use and protection of water and marine resources; the transition to a circular economy; pollution prevention and control; and protection and restoration of biodiversity and ecosystems.
Taskforce on Climate-related Financial Disclosures (TCFD) A market-led, science-based and government-supported global initiative that has recommended climate-related disclosures for companies and financial institutions to use to better inform investors, shareholders and the public of their climate-related financial risks, with the aim of making risk more transparent and enabling more informed investment, credit and insurance underwriting decisions.
Taskforce on Nature-related Financial Disclosures (TNFD) A market-led, science-based and government-supported global initiative that has developed a set of disclosure recommendations and guidance for organisations to report and act on nature-related dependencies, impacts, risks and opportunities.
Sustainability In the context of this report, sustainability refers to economic activity that promotes an environmental or social objective, provided that the action does not significantly harm any environmental or social objective and is also overseen by good governance practices.
Sustainable Development Goals (SDGs) A set of 17 targets developed by the UN to solve interlinked social and environmental problems including poverty, climate change, inequality, poor health and ecosystem breakdown.
Sustainable Finance Disclosures Regulation (SFDR) An EU Directive that imposes mandatory ESG disclosure obligations for asset managers and other financial markets participants.
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