An Article 8 Fund under SFDR is defined as “a Fund which promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.”

Carbon intensity refers to the amount of carbon dioxide (CO2) emissions produced per unit of energy or economic output. It is a critical metric used to understand the environmental impact of various activities, sectors, or industries, and it helps to track progress in reducing greenhouse gas emissions over time.

Sustainable aviation fuel is a type of jet fuel formulated to have a reduced impact on the environment compared to conventional jet fuels. The primary goal of developing SAFs is to minimize the carbon footprint of aviation, which is responsible for a significant portion of global greenhouse gas emissions.

Green hydrogen is hydrogen produced using renewable energy or from low-carbon power. It is a clean-burning fuel that produces no emissions when used. Green hydrogen is produced by splitting water molecules into hydrogen and oxygen using an electrical current. The electricity can be generated from solar, wind, or other renewable sources.

Emotional Intelligence (EI or EQ, which stands for Emotional Quotient) refers to a person's ability to recognize, understand, manage, and effectively use their own emotions and recognize, understand, and influence the emotions of others. It involves a set of emotional and social skills critical for building and maintaining healthy relationships, both personally and professionally.

FID stands for Final Investment Decision. It's a key phase in the capital project planning process when the decision to make major financial commitments is taken. In energy, FID is the final step in determining whether to move forward with the construction of an infrastructure project. In exploration, FID costs are those directly related to the discovery of oil or another commodity.

Double materiality suggests that companies should assess the impact of external environmental and social factors on their operations (external materiality) and evaluate the impact of their activities on the external environment and society (internal materiality).

The IFRS Foundation is a not-for-profit, public interest organization established to develop high-quality, understandable, enforceable, and globally accepted accounting and sustainability disclosure standards. Our Standards are developed by our two standard-setting boards, the International Accounting Standards Board (IASB) and Ithe International Sustainability Standards Board (ISSB).