Business dictionary

The fair treatment and meaningful involvement of all people in environmental policies and practices.

Evaluation of a company’s sustainability and social impact is based on three core criteria: Environmental factors, which assess policies and practices related to environmental protection, such as CO2 emissions reduction, recycling, and sustainability initiatives. Social factors, which focus on the company’s social impact, including labor conditions, community relations, and human rights integration. Governance factors, which evaluate corporate governance, transparency practices, compliance with regulations, and risk management.

The ownership value in a company, calculated as the difference between a company’s total assets and its total liabilities. It represents the residual value left for the shareholders or owners after all debts have been paid. Equity includes the initial capital invested in the business, retained earnings, and other forms of financing that do not require repayment. It is a key indicator of a company’s financial health and signifies the value that would remain for the shareholders if the company were liquidated and its assets sold off to cover its liabilities.

Standards used to measure a company’s performance in areas related to environmental, social, and governance factors.

Investments made in companies that meet certain ethical standards or values.

The central bank of the Eurozone, responsible for conducting the monetary policy of the countries that have adopted the euro as their national currency. The ECB’s primary goal is to maintain price stability, meaning controlling inflation, in order to foster economic growth and stability within the Eurozone. Additionally, the ECB plays a role in overseeing the financial system and implementing the decisions of the Governing Council of the European Central Bank.

Was a temporary rescue mechanism established by Eurozone countries in 2010 to provide financial support to member states facing economic crises. The EFSF offered funds through loans and other financial instruments and worked in conjunction with the European Financial Stabilisation Mechanism (EFSM) and the International Monetary Fund (IMF). The EFSF ceased issuing new financing in 2013, with its responsibilities taken over by the European Stability Mechanism (ESM).

An international financial institution established in 2012 by Eurozone countries to provide financial assistance to member states facing severe economic challenges and at risk of default. The ESM offers funding through loans, bond purchases, and other financial tools to ensure the stability of the Eurozone. Support from the ESM is generally linked to economic reform programs for the recipient countries.

The value of one currency in relation to another. It determines how many units of a foreign currency are needed to obtain one unit of the local currency, or vice versa. The exchange rate can be fixed, if set by governments or central banks, or floating, if determined by market forces of supply and demand.

A plan for how investors or founders will exit the startup and liquidate their investment. Common exit strategies include mergers, acquisitions, or an IPO (Initial Public Offering).