Market terminology Blended finance is a form of development finance whereby development or philanthropic capital (eg, guarantees, first loss, loans, equity, grants), is used to attract or leverage private capital into developing countries. Such development or philanthropic capital can be concessionary or non-concessionary in nature depending on the market dislocation it is aimed to fix. Divestment Divestment is the opposite of investment. It implies the process of selling an asset. In the context of sustainable investing it is associated with selling assets that are unethical, in breach with a sustainable investing policy or that do not meet a defined ESG threshold. E Engagement Engagement refers to interactions between an investor and a corporate or policy makers to improve corporate practices and disclosure of information at an industry or market level. The objective of engagement is exercising influence over a company’s practices and performance (not limited to ESG issues). ESG Environmental, Social and (Corporate) Governance (ESG) describes extra-financial factors, issues and criteria that are considered in the investment process and may have a material impact on the financial performance of portfolios. Synonym: extra-financial factors. ESG integration Integration of ESG criteria into traditional investment strategies and products with a focus on material ESG risks and opportunities. AllianzGI Sustainable Investing – Glossary 8