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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. When choosing investments with a sustainable focus, please note they may perform better or worse than investments without that focus. 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 concerned with the impact it has on people and the planet, as well as 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

Sustainable Investing
ESG factors
Socially responsible investing (SRI) / responsible investing
Ethical Investing
Faith-based investing
Impact investing
Green investing / environmental investing

More terms to get to know

Best in class
ESG integration
ESG ratings
Negative screening
Positive screening

What next?

Explore sustainable investing

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