Market terminology Net-zero investing Net-zero investing means implementing a decarbonisation pathway for a portfolio to net zero greenhouse gas emissions by 2050. Net-zero investing approach can include 1. shifting capital from more-carbon-intensive to less-carbon-intensive investments, theoretically influencing companies’ share price, cost of capital and access to capital; 2. engaging with individual issuers directly, whether through shareholder voting or other stewardship activities to spur faster decarbonisation among laggards; and 3. directing investments toward low-carbon technology. Norm-based screening Norm-based screening is a form of negative screening which involves excluding companies (or government-debt) on account of any failure by the issuer to meet internationally accepted ‘norms’ such as the UN Global Compact, Kyoto Protocol, UN Declaration of Human Rights, etc. AllianzGI Sustainable Investing – Glossary 13