A Guide to Green Terms & Green Investing Terminology


Green Terms


Carbon Footprint - the overall amount of carbon dioxide produced from human activities. Global warming is attributed mostly to increased levels of carbon dioxide.


Carbon Offsets - A carbon offset is a product representing a reduction in greenhouse gas emissions, measured in metric tons of carbon dioxide-equivalent.


Climate Change - the change in long-term weather patterns caused by an increase in greenhouse gasses. This is the new term for Global Warming as we have learned that there are significant impacts on the climate when the earth’s surface becomes warmer.


Energy Conservation - the action of saving energy to reduce the impact on the environment and to reduce costs.


Global Warming - the gradual warming of the earth’s surface caused by an increase in greenhouse gasses.


Geothermal Energy - energy that is captured from underground. There are several types of geothermal engergy, most commonly, a geothermal heat pump can provide heating for a home using the heat found below ground.


Green Investing - Investing in companies that run their business in an environmentally sustainable way.


Greenwashing - the act of misleading consumers about the environmental environmental benefits of a product or service.


Hybrid Cars - cars that use a mix of energy sources, typically electric motors with traditional internal combustion engines.


Locavore - A locavore is someone who eats food grown or produced locally.


Renewable Energy - energy that is produced without consuming natural reasources.


Renewable Resources - these are natural resources that continually regenerate such as wind power or hydro. An example of a non-renewable resource is oil.


Slow Food - The Slow Food movement was founded to counteract fast food and fast life, the disappearance of local food traditions and how our food choices affect the rest of the world.


Socially Responsible Investing (SRI) - Investing in companies that align with social values.


Sustainability - the Brundtland Commission defined sustainablility as development that “meets the needs of the present without compromising the ability of future generations to meet their own needs.”


green investing: verb – Investment activities that focus on companies or projects that are committed to the conservation of natural resources, the production and discovery of alternative energy sources, the implementation of clean air and water projects, and/or other environmentally conscious business practices.



Pure play green investments are those that derive all or most of their revenues and profits from green activities. Green investments can also be made in companies that have other lines of business but are focusing on green-based initiatives or product lines.

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