Glossary

Actions that reduce vulnerability to the impacts of climate change already locked in.

The strategic use of public or philanthropic capital to de-risk and mobilise private investment in climate outcomes.

Achieving zero net carbon dioxide emissions, typically by offsetting residual emissions.

Credits representing one tonne of CO₂ reduced or removed from the atmosphere.

An investor-led initiative pressing the world's largest corporate emitters to take action.

The flow of capital directed at reducing emissions, building resilience, and managing climate-related financial risk.

EU regulation requiring large companies to report on sustainability topics under European Sustainability Reporting Standards.

The EU's classification system defining what economic activities qualify as environmentally sustainable.

A coalition of leading financial institutions committed to transitioning portfolios to net zero by 2050.

Voluntary guidelines by ICMA setting out best practice for green bond issuance across four pillars.

Bonds whose proceeds are ring-fenced exclusively for qualifying environmental projects.

Making misleading or unsubstantiated claims about the environmental credentials of a product, service, or institution.

The ISSB's standards for general sustainability (S1) and climate-specific (S2) disclosure.

The UN body that synthesises global climate science and produces Assessment Reports.

Institutions like the World Bank that use public capital to mobilise private climate finance.

Actions that reduce or prevent greenhouse gas emissions.

A state in which greenhouse gas emissions entering the atmosphere are balanced by removals.

The 2015 international treaty committing signatories to limit global warming to well below 2°C.

Financial risks arising from the direct physical effects of climate change.

Emissions reduction targets validated as consistent with limiting warming to 1.5°C or well below 2°C.

Assets that have lost value or must be retired early due to climate policy, regulation, or market shifts.

Bonds whose financial terms change if the issuer hits or misses pre-agreed sustainability targets.

A framework for companies to disclose climate-related risks and opportunities.

The aspirational warming limit set by the Paris Agreement. Breached on an annual basis in 2024.

The lower borrowing cost that green bond issuers may achieve compared to conventional bonds.

Bonds designed to finance the decarbonisation of high-emitting sectors.

Financial risks arising from the shift to a low-carbon economy.

The UN Framework Convention on Climate Change and its annual Conference of the Parties.