Glossary

De-jargoned: Glossary of ESG terms

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are currently 6 relevant ESG terms in this directory beginning with the letter N.
Natural Capital Finance Alliance
The Alliance and its Secretariat was originally formed to support the signatories of the Natural Capital Declaration (NCD), which was launched at the Rio+20 conference in 2012. The declaration has been signed by the CEOs of more than 40 financial institutions from around the world. It formalises their commitment to the integration of natural capital considerations into financial sector reporting. [Source: Swiss Sustainable Finance]

Nominating And Governance Committee
The governance committee is responsible for evaluating the company’s governance structure and processes and recommending improvements, when appropriate. The nominating committee is responsible for identifying, evaluating, and nominating new directors when board seats need to be filled. The nominating committee is also typically in charge of leading the CEO succession-planning process. [Source: Stanford: Corporate Governance Research Initiative]

Non-Executive Board Members
Sit on the board but do not form part of the management team. [Source: Schroders]

Non-Executive Directors
Directors who are not executives of the firm. Outside directors are expected to be more independent than executive directors because they have no reporting lines to the CEO and do not rely on the company for their livelihood. [Source: Stanford: Corporate Governance Research Initiative]

Non-Shareholder Interests
Statutes that allow the board to consider nonshareholder interests. These statutes are referred to as “nonshareholder constituency” or “expanded constituency” provisions. They allow the board to consider the impact of their actions on stakeholders such as workers, customers, suppliers, and the surrounding community. The primary application of these statutes is in the evaluation of a takeover bid. These statutes purportedly allow management and the board to reject a takeover offer that is in the interest of shareholders if the takeover would harm other constituents. [Source: Stanford: Corporate Governance Research Initiative]

Norms-based Screening
Screening of investments against minimum standards of business practice based on national or international standards and norms such as the ILO conventions, the OECD Guidelines for Multinational Enterprises, the UN Global Compact or the UN Guiding Principles on Business and Human Rights. [Source: Swiss Sustainable Finance]

Sources:

  1. Allianz Global Investors, ESG Glossary, Retrieved: September 12,2020
  2. First Affirmative Financial Network, Glossary of Responsible Investing Terms, Retrieved: September 12,2020
  3. Global Affairs Associates, ESG Glossary, Retrieved: September 12,2020
  4. Invesco Ltd., Glossary: Understanding ESG jargon, Retrieved: September 12,2020
  5. Nuveen, LLC., Glossary: Responsible investing, Retrieved: September 12,2020
  6. Schroders Investment Management North America Inc., Understanding sustainable investment and ESG investment terms, Retrieved: September 12,2020
  7. Stanford Graduate School of Business, Corporate Governance Research Initiative, Retrieved: September 12,2020
  8. Swiss Sustainable Finance, Glossary, Retrieved: September 12,2020

Disclaimer: This glossary is NOT intended to be an authoritative reference document. All information in this glossary is for educational use only. This glossary has been compiled based on public domain information available on the websites of the mentioned sources. While due care has been taken in compiling this glossary, ESGSense does not assume any liability for any inaccuracy or factual error. Any term or definition mentioned here does NOT constitute financial or investment advice. ESGSense assumes no liability for any financial decisions and/or investments made on the basis of information gained from this glossary.