Glossary

As the sustainable finance industry continues to develop, more and more terms and expressions are being introduced to finance’s repertoire.  Our glossary provides a non-exhaustive collection of green and sustainability terms and expressions recently introduced to the market so that you can build a solid foundation of sustainability knowledge.

Players in the Market

Luxembourg Finance Labelling Agency
The Luxembourg Finance Labelling Agency (LuxFLAG) aims to promote the raising of capital for sustainable investments by awarding a recognisable label to eligible investment vehicles. Its objective is to reassure investors that the labelled investment vehicles channel capital raised into the responsible investment sector. It is an independent and international non-profit association created in Luxembourg in July 2006.
LuxFLAG
Climate Bonds Initiative
Climate Bonds Initiative (CBI) is an investor-focused not-for-profit organisation, promoting large-scale investments that will deliver a global low-carbon and climate resilient economy. The Initiative seeks to develop mechanisms to better align the interests of investors, industry and government to catalyse investments at speed and scale sufficient to avoid dangerous climate change.
Climate Initiative Bonds
High-level Expert Group on Sustainable Finance
A group of experts established by the European Commission in December 2016, the High Level Expert Group (HLEG) was made up of 20 senior experts from civil society, the finance sector, academia and observers from European and international institutions. Its mission was to advise the European Commission on how to (i) steer the flow of public and private capital towards sustainable investments, (ii) identify the steps that financial institutions and supervisors should take to protect the stability of the financial system from risks related to the environment, and (iii) deploy these policies on a pan-European scale.
Intergovernmental Panel on Climate Change
The Intergovernmental Panel on Climate Change (IPCC) was created by the United Nations to carry out concrete scientific research on climate change.
Intergovernmental Panel on Climate Change
International Capital Market Association
International Capital Market Association (ICMA) is a not-for-profit membership association, headquartered in Switzerland that serves the needs of its wide range of member firms in global capital markets.
International Capital Market Association
Luxembourg Green Exchange
In 2016, the Luxembourg Stock Exchange (LuxSE) launched a dedicated exchange for Green, Social and Sustainable securities, called the Luxembourg Green Exchange (LGX). LGX aims to provide issuers, asset managers and investors with a platform for bonds and funds which are Green, Social, Sustainable, or ESG-focused and where the entry is restricted to issuers and asset managers which commit to specific reporting obligations to ensure maximum transparency.
Luxembourg Green Exchange
Eurosif
The European Sustainable Investment Forum, also known as Eurosif, is an organisation dedicated to the promotion of sustainability within European capital markets.
Eurosif
Sustainable Banking Network
Sustainable Banking Network (SBN) is a community of financial sector regulatory agencies and banking associations from emerging markets committed to advancing sustainable finance in line with international good practice.
Sustainable Banking Network
Sustainable Stock Exchanges Initiative
Launched in 2009, the Sustainable Stock Exchanges Initiative (SSE) is a UN Partnership Programme of the UN Conference on Trade and Development (UNCTAD), the UN Global Compact, the UN Environment Program Finance Initiative (UNEP FI), and the Principles for Responsible Investment (PRI). Its mission is to support the alignment of capital markets with public policy goals (SDGs) by building the capacity of stock exchanges and securities market regulators to promote responsible investment in sustainable development and advance corporate performance on Environmental, Social and Governance issues.
Sustainable Stock Exchanges Initiative
Technical Expert Group on Sustainable Finance
A Technical Expert Group (TEG) which was set up by the European Commission to assist it in developing, among others, an EU classification system (Taxonomy) to determine whether an economic activity is environmentally sustainable.
UNFCCC
The United Nations Framework Convention on Climate Change (UNFCCC) was created after the Rio Earth Summit in 1992 and entered into force in 1994. Almost 197 countries - known as the Parties of the convention - have ratified the convention since then.  The abbreviation is commonly used to refer to the UN Climate Change responsible body. 
United Nations Framework Convention on Climate Change
World Federation of Exchanges
The World Federation of Exchanges (WFE) is an entity that brings together exchanges and clearing houses from around the world. It was established in 1961 to aid "the development, support and promotion of organised and regulated securities markets in order to meet the needs of the world’s capital markets in the best interests of their users.
World Federation of Exchanges