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.