Common Ground: New Report Provides Standard Definitions For Key Responsible Investment Terms

Introduction

Word nerds, rejoice! Through an international initiative led by the PRI, CFA Institute and Global Sustainable Investment Alliance, a report has been issued that:

• proposes common definitions for each of Screening, ESG Integration, Thematic Investing, Stewardship, and Impact Investing - five key terms commonly used in responsible investment;
• lists and explains the essential elements of each definition; and
• provides guidance for using the term in practice.

The report also provides the starting reference points for these standardized definitions. This initiative began in response to a 2021 report by the International Organization of Securities Commissions (IOSCO), which stressed the need for the global investment industry to establish common terms and definitions to ensure consistency throughout the global asset management industry.