The Paris Agreement - is the first-ever universal, legally binding global climate change agreement, imposing legal obligations on all participants to achieve the objective of limiting the global average temperature increase to below 2˚C above pre-industrial levels (1990), with additional efforts to achieve a limit of 1.5˚C.
Climate change mitigation - the process of keeping global average temperature increase well below 2°C and continuing efforts to limit global warming to 1.5°C above pre-industrial levels, as required by the Paris Agreement.
Climate change adaptation - the process of adjusting to actual and projected climate change and its effects.
Greenwashing - the process of conveying a false impression or providing misleading information about how a company's products are more environmentally sound. Greenwashing is considered an unsubstantiated claim to deceive consumers or investors into believing that a company's products or manufacturing process are environmentally friendly. Greenwashing is used by companies both to increase sales and to gain access to financing.
Circular economy - an economic system in which the value of products, materials and other resources in the economy is maintained for as long as possible, increasing the efficiency of their use in production and consumption and thereby reducing negative environmental impacts. The ultimate goal of a circular economy is to minimise waste and hazardous substances released into the environment at all stages of the life cycle of products and services, including through the waste hierarchy.
Sustainability factors - environmental, social and governance issues, such as respect for human rights or anti-corruption and anti-bribery issues.
ESG (Environmental, Social and Governance) factors - are environmental, social or governance factors that may affect an entity's financial performance. These include:
Social factors - refers to how an entity relates to employees, customers or the communities where it operates, and includes:
Governance - refers to the way an entity is run and includes elements such as management compensation, internal control, transparency or audit and include:
Green finance  - financing investments that provide environmental benefits in the broader context of environmentally sustainable development. Green finance involves efforts to internalise environmental externalities and adjust risk perceptions to incentivise green investments and reduce environmentally harmful ones. Green finance covers a wide range of financial institutions and asset classes and includes both public and private finance. Green finance involves the effective management of environmental risks throughout the financial system.
Sustainable finance - integrating environmental, social or governance (ESG ) criteria into financial services and supporting sustainable economic growth.
Green Deal - sets the direction for various European policies for the next 5 years (adopted in December 2019) and is a roadmap of what the European Commission intends to do to help achieve climate neutrality.
Green equity investment - Investments in companies and projects involving green capital. This type of investment is most often made through investments in indexes or equity funds built on green criteria. In recent years, many indexes have been developed to identify and track the performance of green sectors, companies and investments. While index providers are relatively transparent about their methodologies for identifying green companies for their indexes, the methods for delimiting "green" used by green equity funds are often complex and contested. Thus, labels and certification schemes have been developed to certify the greenness of funds. Overall, the methodologies used to delimit "green" are highly heterogeneous in the listed green equity segment and need to be harmonised.
Green bonds - fixed income financial instruments that are used to finance projects that have positive environmental and/or climate benefits.
Taxonomy - system of classifying elements of a group (e.g. economic activities) into different categories according to some criteria.
Sustainability risk - an environmental, social or governance event or condition that, if it occurs, could cause a significant actual or potential adverse effect on the value of the investment.
Climate risks are classified into:
Financial market participant:
Insurance-based investment product or "IBIP":
 GFSG definition
 Environmental, Social and Governance