United Nations Global Compact

Glossary

Corporate SDG Investments

Long-term investments that support a company's contribution to the SDGs, such as CAPEX, OPEX, M&A, and joint ventures. Includes investments in human, social, natural, and intellectual capital.

SDG-Aligned Investments

Investments made to support SDG strategies and outcomes, focusing on transparency and alignment with sustainability goals.

Mergers and Acquisitions (M&A)

Corporate strategy for growth, innovation, or market expansion through mergers or purchasing other companies/assets.

Foreign Direct Investment (FDI)

Investment by a company in assets or businesses in another country, often involving ownership and management.

Operational Expenditures (OPEX)

Day-to-day business expenses necessary to maintain operations, distinct from CAPEX, which focuses on long-term investments.

Joint Venture (JV)

A collaboration between two or more companies on a specific project, sharing resources, risks, and rewards.

Corporate Finance Strategy

A company's approach to financing its contributions to the SDGs by aligning capital structure with sustainability goals.

SDG-Linked Finance

Debt products linked to SDG performance, such as sustainability-linked bonds and loans, which tie financial terms to meeting specific sustainability goals.

Blended Finance

Combining public and private funds to reduce risk and attract investment in high-impact SDG-related projects.

Performance-Based Financing

A financing method where a company raises funds linked to meeting specific sustainability goals, incentivizing positive change.

Use-of-Proceeds Financing

Funds raised for specific projects aligned with sustainability goals, such as green or social bonds, with transparency and accountability.

Sustainability Outcomes

The positive or negative effects of investments on people and the planet, evaluated against global sustainability goals.

Taking Action on Sustainability Outcomes

Using tools, such as capital allocation and stewardship, to improve sustainability outcomes and mitigate negative impacts.

Global Sustainability Goals and Thresholds

International frameworks, such as the SDGs and the Paris Agreement, providing pathways to a sustainable economy and environment.