Climate Finance Terms Explained: A Vogue Business Glossary for Business Leaders

By: SESAMm | July 8, 2025

A Vogue Business Glossary for Business Leaders
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As the global sustainability conversation matures, so does the language. Concepts like blue bonds, carbon leakage, and financed emissions are no longer the domain of climate policy insiders; they’re now central to decision-making in boardrooms, supply chains, and marketing teams. Yet, as climate finance grows more complex, many professionals lack the vocabulary to keep up.

That’s where Vogue Business comes in. The publication has released a Climate Finance Glossary designed to decipher the technical terms reshaping corporate sustainability. While Vogue may be best known for fashion, this initiative acknowledges the deep financial implications of sustainability, particularly in industries like apparel, where environmental impact is closely tied to sourcing and production decisions.

From Carbon Budgets to Just Transition

The glossary includes more than two dozen terms, covering core themes like green and blue bonds, carbon border adjustments (CBAM), nature-based solutions, and the Just Transition. It also addresses frameworks that investors and regulators are now embedding in policy and disclosures, such as double materiality, ESG integration, and science-based targets.

The definitions are not oversimplified; they’re clear but grounded in academic and policy expertise. Contributors include researchers from the University of Exeter and Oxford’s Smith School of Enterprise and the Environment, lending credibility to what could otherwise be seen as a lightweight effort.

The result is a tool that helps close the gap between sustainability and finance teams, especially in companies navigating incoming ESG regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) or the Green Claims Directive.

Why This Glossary Matters

Many sustainability professionals, especially those outside the finance world, are overwhelmed by ESG jargon. At the same time, finance teams often lack the environmental literacy to assess risks in areas like biodiversity loss or Scope 3 emissions. This glossary offers a shared language.

More than just a communications tool, it’s a strategic enabler. With greater climate disclosure, rising litigation risks around greenwashing, and investor expectations for transparency, understanding climate finance is no longer optional. It’s a baseline requirement for leadership.

This glossary arrives not a moment too soon for industries like fashion and retail, where storytelling, brand purpose, and supply chain transparency intersect.

Final Thoughts

The Vogue Business Climate Finance Glossary signals something larger: climate finance is no longer niche. It’s becoming a mainstream business competency. And when major business media take steps to make it more accessible, they’re not just informing; they’re helping shape the future of corporate sustainability.

As climate risk becomes investment risk and ESG moves from marketing to materiality, shared understanding will be the foundation of credible action.

 


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