Sustainability Glossary
Your A-Z guide to ESG, sustainability frameworks, and environmental terminology
Showing 28 of 28 terms
C
Carbon Footprint
The total amount of greenhouse gases produced directly and indirectly by an individual, organization, event, or product, expressed as carbon dioxide equivalent (CO2e).
Carbon Neutral
Achieving net-zero carbon dioxide emissions by balancing emissions with carbon removal or offsetting. Different from net-zero as it focuses only on CO2, not all greenhouse gases.
Circular Economy
An economic system aimed at eliminating waste and the continual use of resources through reuse, sharing, repair, refurbishment, remanufacturing, and recycling.
CSDDD
Corporate Sustainability Due Diligence Directive - EU directive requiring companies to identify, prevent, and mitigate adverse human rights and environmental impacts in their operations and value chains.
CSRD
Corporate Sustainability Reporting Directive - EU legislation requiring large companies to publish regular reports on their environmental and social impact activities.
D
DNSH
Do No Significant Harm - A principle in the EU Taxonomy requiring that economic activities do not cause significant harm to any of the six environmental objectives.
Double Materiality
A concept requiring companies to report both how sustainability issues affect the company (financial materiality) and how the company affects society and environment (impact materiality).
E
ESG
Environmental, Social, and Governance - Three central factors in measuring the sustainability and societal impact of an investment in a company or business.
ESRS
European Sustainability Reporting Standards - The standards companies must use when reporting under CSRD, developed by EFRAG.
EU Taxonomy
A classification system establishing a list of environmentally sustainable economic activities to help scale up sustainable investment and implement the European Green Deal.
G
GHG Protocol
Greenhouse Gas Protocol - The most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions.
Greenwashing
The practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, technology, or company practice.
GRI
Global Reporting Initiative - An international independent standards organization that helps businesses and governments understand and communicate their impacts on sustainability issues.
I
ISSB
International Sustainability Standards Board - Develops IFRS Sustainability Disclosure Standards to provide a global baseline for sustainability-related financial disclosures.
L
Life Cycle Assessment (LCA)
A methodology for assessing environmental impacts associated with all stages of a product's life from raw material extraction through production, use, and disposal.
M
Materiality Assessment
The process of identifying and prioritizing ESG topics that are most relevant to a company and its stakeholders for reporting and strategic purposes.
N
Net Zero
Achieving a balance between the greenhouse gases put into the atmosphere and those taken out. Unlike carbon neutral, net zero covers all greenhouse gases, not just CO2.
P
Paris Agreement
International treaty on climate change adopted in 2015, aiming to limit global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels.
S
Science-Based Targets (SBTi)
Emissions reduction targets aligned with the latest climate science and the Paris Agreement goals. The Science Based Targets initiative validates corporate targets.
Scope 1 Emissions
Direct greenhouse gas emissions that occur from sources owned or controlled by the company, such as company vehicles and on-site fuel combustion.
Scope 2 Emissions
Indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company.
Scope 3 Emissions
All other indirect emissions in a company's value chain, including both upstream (supply chain) and downstream (product use) emissions.
SDGs
Sustainable Development Goals - 17 interlinked global goals adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure prosperity.
Stakeholder Engagement
The process of involving individuals, groups, or organizations that may be affected by or can influence a company's decisions and activities.
Supply Chain Due Diligence
The process of identifying, assessing, and addressing actual and potential adverse impacts in a company's supply chain related to human rights and environmental issues.
T
TCFD
Task Force on Climate-related Financial Disclosures - Framework for companies to disclose climate-related financial risks and opportunities to investors and stakeholders.
Transition Plan
A company's strategic plan outlining how it will transform its business model, operations, and investments to achieve climate targets and sustainability goals.
V
Value Chain
The full range of activities and processes involved in creating a product or service, from raw materials through to end consumers and disposal.