Energy Service Company (ESCO)
A company that offers to reduce a client’s energy costs, often by capitalizing the upfront expenditures and sharing the resulting future cost savings with the client. This is typically accomplished through the use of an energy-performance contract (EPC) or a shared-savings agreement. ESCOs may offer any of the following services: financing, design & installation, project […]
Energy Performance Contracting (EPC)
A contract with an architect, designer, or developer in which they are paid a bit more than they conventionally would have been, but part of their fee is paid over time from the savings their solution creates in terms of either performance or efficiency. Conversely, designers and developers are often paid a percentage of the […]
Economic Value Added (EVA)
An estimate of a business’ true economic profit for the year, differing sharply from accounting profit. EVA represents the residual income that remains after the cost of all capital, including equity capital has been deducted, whereas accounting profit is determined without imposing a charge for equity capital. The basic formula for EVA is as follows: […]
Eco-Management and Audit Scheme (EMAS)
An EU program recognizing organizations that are continuously improving their environmental performance beyond what is legally required. Organizations regularly produce statements reporting their compliancy and performance. Once becoming verified, they are recognized by an EMAS logo. http://europa.eu.int/comm/environment/emas/
Eco-Industrial Park
Two or more separate industrial processes co-located in to form mutually beneficial, symbiotic relationships in which each participant’s environmental and resource issues (including energy, water, materials and waste) are managed in a manner that improves their environmental and economic performance. These parks may employ features such as: • Conversion of wastes into valuable inputs • […]
EBITA (Earnings Before Interest, Taxes, and Amortization)
An accounting measure that is a snapshot of a company’s financial standing. EBITA is the company’s financial picture with regard to earnings. However, what is missing from the concept of earnings, and the EBITA snapshot, is the cost and depletion of “free” natural resources that are part of production processes and consumption behaviors. If these […]
Dow Jones Sustainability Index
Created in 1999, the Dow Jones Sustainability Index is one of the first global indexes watching the financial performance leading companies with an emphasis on sustainability in economic, social, and environmental capacities. The DJSIs emphasize long-term corporate performance and positive risk/returns. The DJSIs are audited using a special framework from the International Auditing and Assurance […]
Diversity
In nature, diversity is a source of ecosystem strength since failures are unlikely to eliminate all species. Therefore, the ecosystem will recover in some form and continue. In business or investing, diversity can provide a similar source of robustness against market instability or failures. Specifically, when applied to a human context, diversity refers to a […]
Distributed Collaborative Intelligence
Distributed collaborative intelligence is group collaboration within a virtual sphere of interaction, where group members can interact in real time even though they are not located within the same physical space. Examples are instant messaging capabilities, as well as group conferencing ability over the Internet. New ways of collaborating without having to travel, has significant […]
Discounted Cash Flow
A financial term referring to the value of an investment adjusted for the time value of money. Since money loses value over time, future cash to be received must be discounted to express its present value (today) in order to properly determine the value of a company or project under consideration. As the payment gets […]
