ESG 101

Definitions

• Cleantech

  Cleantech is an umbrella term referring to the growing offering of products, services, innovations, and technological improvements available which reduce usage of natural resources or negative environmental impact. This is done typically through enhanced energy efficiency, improved or responsible use of natural resources, and/or reducing or eliminating greenhouse gas (GHG) emissions. Examples include water purification, carbon sequestration, enhanced battery storage, and renewable energies.

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• Task Force on Climate-Related Financial Disclosures (TCFD)

  In 2017, the G20’s Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released recommendations for climate reporting. The TCFD recommendations are widely recognized as best practice for financial and non-financial businesses reporting on climate change risks and opportunities. The recommendations call for businesses to provide 11 climate-related financial disclosures structured around governance, strategy, risk management, and metrics and targets, covering processes related to climate-related physical and transition risks and opportunities.

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• Social Performance / Integrated social performance

  Social performance is the sum of a company’s interactions, activities and outcomes that can affect its stakeholders. Achieving good social performance means that a company needs to apply the same focus and rigor to the social aspects of the business as it does to every other part of the business. In other words, every employee and every contractor have a shared responsibility to get it right when it comes to potential social impacts, risks, and opportunities that relate to every company decision.

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