Glossary
This glossary has been developed to establish a shared conceptual foundation for all stakeholders operating in the fields of impact investing and the impact economy.
Impact investing, impact measurement and management, outcomes-based financing, and related concepts—which are increasingly used across finance, public policy, entrepreneurship, and social impact—are explained with reference to international frameworks while taking the Turkish context into account.
The aim is to create a consistent terminology across disciplines, reduce conceptual ambiguity encountered in practice, and support the wider adoption of impact-oriented approaches.
EYDK Dictionary
There are currently 13 names in this directory beginning with the letter E.
E
Endowment
An Endowment is a permanently invested pool of capital dedicated to ensuring the long-term financial sustainability of a foundation or institution, where the investment returns fund mission-related programs and activities.
Energy Transition Funds and Regional Support Programmes
Energy Transition Funds and Regional Support Programmes are financing mechanisms designed to support economic, social and structural transformation in regions dependent on fossil fuels or carbon-intensive industries. They finance energy system transformation, economic diversification, job creation, local entrepreneurship and regional resilience, with the aim of ensuring a just and inclusive transition for affected communities.
Enterprise
The Enterprise whose intention it is to embed contributing positively to sustainable development and the SDGs into its purpose, strategy, management approach, governance practices and decision-making. Enterprises may be publicly listed, public interest and private entities (including profit, not-for-profit, social enterprise entities), non-government organizations (NGOs), small and medium enterprises (SMEs) and state-owned and other public sector entities.
Enterprise Value
Enterprise Value refers to a measure that represents a company’s total economic value. It is equal to the sum of the company’s market capitalization and its total debt, and reflects the approximate price that would be paid to acquire the entire company.
Environmental, Social and Governance (ESG)
A framework used to assess an organisation’s performance and risks beyond financial metrics, by considering environmental factors (climate impact, resource use), social factors (labour rights, community impact, equality) and governance practices (transparency, ethics, board structure and accountability). ESG helps investors and institutions evaluate sustainability performance and long-term value creation.
Environmental, Social, and Governance Criteria (ESG)
A set of criteria used to assess an organisation’s performance beyond financial outcomes by evaluating its environmental impact (climate, resource use, environmental risk management), social impact (labour rights, human rights, community impact, equality and inclusion) and governance practices (ethics, transparency, board structure, accountability). ESG criteria help investors evaluate risks and opportunities more comprehensively and support responsible and sustainable investment decisions.
Equity
Equity refers to ownership capital in a company. When investors provide equity financing, they receive shares in the company and become partial owners. Their returns depend on the company’s performance, profits, and increase in value rather than fixed repayments.
Equity Instruments
Equity Instruments are financial tools that provide investors with ownership interest in a company, such as shares or equity stakes. In impact investing, they enable long-term, value-aligned capital participation.
EU GBS (EU Green Bond Standard)
Voluntary standard for use-of-proceeds bonds that finance green projects that; significantly contribute to at least one of the environmental objectives of the EU Taxonomy, do not substantially harm the others, and otherwise meet the criteria and thresholds in the taxonomy proposal (including meeting minimum social safeguards). Use of the term ‘EU Green Bond’ is only permitted when all components of the EU GBS are met. The SDGs complement the EU GBS.
EU Taxonomy
Proposed EU Taxonomy for Sustainable Activities. A list of economic activities with performance criteria for their contribution to six environmental objectives: Climate change mitigation, Climate change adaptation, Sustainable use and protection of water and marine resources, Transition to a circular economy, Waste prevention and recycling, Pollution prevention and control, Protection of healthy ecosystems. To be included in the proposed EU Taxonomy, an economic activity must contribute substantially to at least one environmental objective and do no significant harm to the other five, as well as meet minimum social safeguards.
Evaluation
A systematic process of assessing the design, implementation and results of a project, programme, policy or investment to determine its effectiveness, efficiency, relevance, impact and sustainability. Evaluation supports decision-making, organisational learning, accountability and continuous improvement. Monitoring data often provides the primary evidence base for evaluation.
Exit Strategy
A planned approach that outlines how an investor, organisation or project will conclude its involvement and realise value at the end of an investment or intervention period. An exit strategy helps manage financial returns, risks and long-term continuity. It may include methods such as sale, public offering (IPO), share transfer, merger or liquidation. In impact investing, exit strategies also consider the continuity and preservation of social and environmental impact.