At Ethical Futures we’re aware that in financial services we use a lot of jargon that may not be used much outwith our sector. We feel that it’s important for everyone to understand what we’re talking about so we thought it would a good idea to create a little glossary – a jargon buster if you will. 

This isn’t an extensive list but just a few terms that we know are thrown around on a regular basis that you might want some clarity on. If you can think of any that should be added to the list, please let us know. 

Assets v Liabilities 

An asset is something that you own, e.g. your house. A liability is something that you owe e.g. a loan. 

Greenwashing 

Greenwashing occurs when a company makes misleading claims about their environmental impact. 

ISA 

An ISA is a savings account that allows you to grow your money without paying tax on the interest. 

Investment 

An investment is the act of using your money in a way that aims to maximise its value. (Investments may go down in value as well as up.)

Inflation 

Inflation is a measure of how much prices have increased or decreased. 

Power of Attorney 

Power of Attorney (PoA) is a legal document that allows someone to make decisions on the behalf of another. 

Risk 

Risk, in the financial context, is the possibility that an investment may go down in value as well as up. 

SDR 

The Sustainability Disclosure Requirements are a set of regulations from the FCA that aim to give the consumer clarity and confidence in their sustainable investments. 

Sustainable investing 

Sustainable investing is a method of investing that aims to achieve financial returns whilst also having a positive impact on people and the planet. 

Triple Lock on pensions 

The triple lock on pensions guarantees that pensions will increase in line with 2.5%, the Consumer Price Index or average national earnings, whichever is higher.