Course: Sustainable Finance

Sustainable Finance Glossary

Note:
* The scope column indicates the primary domain where an entry is applicable. The order is not important
* The year column indicates when the initiative was formally launched. Many principles have evolved organically without a clearcut date.
* The link provided aims to be to a definitive resource for each concept (if such exists), otherwise to the wikipedia entry. Usual disclaimers apply.
Acronym Name Year Definition Scope Link
The 28th session of the Conference of the Parties (COP 28) to the
UNFCCC took place in Dubai, UAE. The UAE Consensus commits
COP28 UNFCCC COP 28 2023 all signatory countries to move away from carbon energy sources General Website
"in a just, orderly and equitable manner" to mitigate the worst
effects of climate change, and reach net zero by 2050
The 27th session of the Conference of the Parties (COP 27) to the
COP27 UNFCCC COP 27 2022 General UN Website
UNFCCC took place in Sharm El-Sheikh, Egypt
Glasgow Climate The pact is the first climate agreement explicitly planning to
COP26 2021 General Wikipedia
Pact reduce coal usage
The first-ever universal, legally binding global climate change
COP21 Paris Agreement 2015 agreement, adopted at the Paris climate conference in December General EU Site
2015
Sustainable A collection of 17 global goals set by the United Nations General Sustainable
SDG 2015 General
Development Goals Assembly in 2015 for the year 2030 Development
Principles for
An international network of investors (UN Supported) working General
PRI Responsible 2005 UNPRI Site
together to put the six principles into practice Investments
Investment
A global framework for the insurance industry toaddress
environmental, social and governance (ESG) risks and
Principles for
opportunities and a global initiative to strengthen the insurance
PSI Sustainable 2012 Insurance UNEPFI Site
industry’s contribution as risk managers, insurers and investors to
Insurance
building resilient, inclusive and sustainable communities and
economies

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Acronym Name Year Definition Scope Link

Principles for
Six Principles for Responsible Banking (Signed by an international
PRB Responsible 2019 General Banking UNEPFI Site
network of banks)
Banking
Partnership for An industry-led partnership to facilitate transparency A range of bank
PCAF Carbon Accounting 2015 and Accountability of the financial sector to the Paris held assets (focus PCAF Site
Financials Agreement on GHG accounting)
Developed by 2° Investing Initiative with backing from UN A range of financial
Paris Agreement
Principles for Responsible Investment, PACTA enables users to assets (focus on
PACTA Capital Transition 2012 PACTA Site
measure the alignment of financial portfolios with climate GHG portfolio
Assessment
scenarios as well as to analyze specific companies steering)
Global Alliance for A network of banking CEO's from around the world committed to Promotion of ESG
GABV 2009 GABV Site
Banking on Values advancing positive change in the banking sector themes
CDP is a not-for-profit charity that runs the global disclosure
Carbon Disclosure Environmental
CDP 2000 system for investors, companies, cities, states and regions to CDP Site
Project Disclosure
manage their environmental impacts
An intergovernmental body of the United Nations, dedicated to
Intergovernmental
providing the world with an objective, scientific view of climate
PCC Panel on Climate 1988 General IPCC Site
change, its natural, political and economic impacts and risks, and
Change
possible response options
The IFRS Foundation Trustees announced the creation of a new
International standard-setting board (ISSB) to help meet the demand for high
Corporate IFRS Site
ISSB Sustainability 2021 quality, transparent, reliable and comparable reporting by
Reporting (Announcement)
Standards Board companies on climate and other environmental, social and
governance (ESG) matters
Network for Micro/Macro
Banque de France
NGFS Greening the 2017 Group of Central Banks and Financial Supervisors prudential policy
Financial System development
Website
The Fund’s
investments can be
Green Climate A global fund created to support the efforts of developing
GCF 2010 in the form of GCF Website
Fund countries to respond to the challenge of climate change
grants, loans, equity
or guarantees

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Acronym Name Year Definition Scope Link

Knowledge
exchange around
Cities Climate A multi-level and multi-stakeholder coalition aimed at closing the
urban
CCFLA Finance Leadership 2014 investment gap for urban subnational climate projects and CCFLA Website
development,
Alliance infrastructure
climate action,
and/or financing
Rechnical
assistance;
facilitation of peer-
A group of 96 cities around the world focused on tackling climate
Cities Climate to-peer exchange;
C40 2005 change and driving urban action that reduces greenhouse gas C40 Website
Leadership Group and research,
emissions and climate risks
knowledge
management &
communications
Forum where cities
can collaborate,
share knowledge
Local Governments Is a global network of more than 2500 local and regional and drive
ICLEI 2005 ICLEI Website
for Sustainability governments committed to sustainable urban development meaningful,
measurable and
sustainable action
on climate change
Climate Finance Senior executives of seven major private-sector institutions from
General Bloomberg CFLI
CFLI Leadership 2018 across the investment chain. Supporting global mobilization of
Investments Page
Initiative private finance in response to the challenge of climate change
Green Bonds The Climate Bonds Initiative is an international organisation Green Bonds
GBI 2010 Bond Markets
Initiative working to mobilize bond market, for climate change solutions Initiative Website
Global Investors for
Sustainable Group of 30 CEOs of major financial institutions and corporations
GISD 2019 Mobilization UN Website
Development spanning all the regions of the world
Alliance

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Acronym Name Year Definition Scope Link

A list of economic activities which can make a substantial
EU EU Sustainable Asset Manager
2019 contribution to climate change mitigation and criteria to do no EC Website
Taxonomy Finance Taxonomy Disclosures
significant harm to other environmental objectives
Corporate A directive that modernises and strengthens the rules concerning
Corporate
CSRD Sustainability 2023 the social and environmental information that companies have to EC Website
Disclosures in EU
Reporting Directive report
A set of detailed disclosure (reporting) requirements developed
European
by the The European Financial Reporting Advisory Group (EFRAG)
Sustainability Corporate
ESRS 2023 as mandated to by European Commission under the Corporate EFRAG Website
Reporting Disclosures in EU
Sustainability Reporting Directive (CSRD) by the European
Standards
Commission.
Task Force on
Climate-related Voluntary climate-related financial risk disclosures for use by
TCFD 2015 Financial Reports FSB-TCFD
Financial companies
Disclosures
Task Force on
Nature-related Voluntary nature-related financial risk disclosures for use by
TNFD 2021 Financial Reports TNFD
Financial companies
Disclosures
The directive lays down the rules on disclosure of non-financial
Non-Financial
NFRD 2014 and diversity information by large companies operating in the Disclosures EC Website
Reporting Directive
European Union
A risk management framework for determining, assessing and
Equator Principles
EP4 Equator Principles 2003 managing environmental and social risk in project finance (2019 Project Finance
Update)
Site

A standardised framework for organisations to identify, measure

Natural Capital
NCP 2016 and value their direct and indirect impacts and dependencies on General NCP Site
Protocol
natural capital
A framework for assessing and disclosing the climate alignment of Poseidon Principles
PP Poseidon Principles 2019 Shipping Finance
ship finance portfolios Site

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Acronym Name Year Definition Scope Link

Association for
Responsible Sustainability
ARISE N/A A voluntary quality standard for sustainability research providers ARISE Website
Investment Research
Services
Global Reporting An independent international organization promoting standards Sustainability
GRI 1997 GRI Website
Initiative around sustainability reporting Reporting
GHG Protocol establishes comprehensive global standardized
Sustainable Finance
GHG frameworks to measure and manage greenhouse gas (GHG) GHG Accounting GHG Protocol
Disclosure 2001
Protocol emissions from private and public sector operations, value chains and Disclosures Website
Regulation
and mitigation actions.
WRI is a global nonprofit organization that works with leaders in
World Resources government, business and civil society to research, design, and
WRI 1982 Cross Cutting WRI Website
Institute carry out practical solutions that simultaneously improve people’s
lives and ensure nature can thrive.
United Nations
The United Nations Framework Convention on Climate Change is
Framework
UNFCC 1992 the UN process for negotiating an agreement to limit dangerous Cross Cutting UNFCCC Website
Convention on
climate change.
Climate Change
Organization for
The Organisation for Economic Co-operation and Development is
economic co-
OECD 1961 an intergovernmental organisation with 38 member countries, Cross Cutting OECD Website
operation and
founded in 1961 to stimulate economic progress and world trade.
development
The Climate Policy Initiative is an independent non-profit
research group and international climate policy organization
Climate Policy
CPI 2009 based in San Francisco, California with other offices worldwide. Cross Cutting CPI Website
Initiative
CPI is supported primarily by philanthropic organizations and
government development finance.

ISO Standards
Acronym Name & Definition Scope Link

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Guidance on social responsibility:

ISO 26000 A voluntary guidance standard on how businesses and organizations can Social Responsibility ISO 26000
operate in a socially responsible way
Environmental management systems:
A standard intended for use by an organization seeking to manage its Environmental Standards
ISO 14001 ISO 14001
environmental responsibilities in a systematic manner that contributes to the Certification
environmental pillar of sustainability
Adaptation to climate change: Environmental Standards
ISO 14090 ISO 14090
Principles, requirements and guidelines Certification

Principles and Metrics

Name Description Link
Green Bonds enable capital-raising and investment for new and existing projects with International Capital Market
Green Bond Principles
environmental benefits Association
The green loan market aims to facilitate and support environmentally sustainable economic
Green Loan Principles Loan Market Association
activity
Green Mortgage Initiatives that link real estate financing terms to its Ecological Footprint

Stakeholder A set of disclosed metrics that can be used by businesses to align their reporting on performance
WEF
Capitalism Metrics against ESG indicators and track their contributions towards the SDGs on a consistent basis.

Risks
Risks associated with (un)-Sustainable Finance.
Name Definition Link
Climate-Related Risk The potential negative impacts of Climate Change on a financial institution FSB-TCFD
Stranded Assets The premature writeoff of assets incompatible with a sustainable economy

ESG Risks Risk derived from noncompliance with environmental, social, or governance criteria GIIN
Impact Risk The possibility that the investment does not achieve the desired social or environmental benefits GIIN
Green themed public relations or marketing that ideceptively used to promote the perception an wikipedia:Greenwashing
Greenwashing
organization's products, aims or policies are environmentally friendly. Wikipedia

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