In a joint effort, the CFA Institute, the Global Sustainable Investment Alliance (GSIA), and UN-convened Principles for Responsible Investment (PRI) have released a new resource aimed at bringing clarity and uniformity to the terminology used in responsible investment. This resource is intended to provide definitions, detailed explanations, input sources, and practical guidance for key terms, including screening, ESG integration, thematic investing, stewardship, and impact investing. Marg Franklin, President and CEO at CFA Institute, said: “Technical terminology is an important part of professional practice. New terms are always emerging alongside new ideas, and definitions evolve over time. It’s important to standardise terms and definitions as practices mature so that professionals can communicate efficiently and effectively with each other as well as with clients, regulators, and other market participants.” The collaboration responds to calls from regulators for standard setters to develop common terms and definitions to ensure consistency in the global asset and wealth management industries. The initiative not only aims to address greenwashing but also help deepen the understanding of various responsible investment approaches, making it easier to differentiate between strategies like ESG integration and impact investing. PRI CEO David Atkin said: “By unifying around common definitions, we support our signatories and members to communicate with confidence.”
