ESG 101

Definitions

• Materiality

  In capital markets, an issue is deemed material if there is significant likelihood that a “reasonable investor” would consider it important in their investment decision process about buying, selling or holding a security or when voting.

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• Community Grievance Mechanism

  A community grievance mechanism is a process for receiving, investigating, responding to, and closing out complaints or grievances from affected communities in a timely, fair, and consistent manner. CGMs work best as integral components of a company’s overall approach to community engagement, not as stand-alone processes or as a substitute for engagement. Without ongoing engagement, a CGM may be the only channel for external stakeholders to access a company, and may be used to make claims that are designed solely to gain company attention or that have already become acute and could threaten operations.

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• GHG Emissions

  Greenhouse gas emissions are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride. Greenhouse gas emissions refer to the production of the above chemical compounds in gaseous form which, within the atmosphere of earth, trap heat and as a result, create a greenhouse effect on the Earth, leading to global warming.

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