To cut through the jargon, we’ve created this handy glossary of essential terms. It covers the basics you need to know and highlights the frameworks driving today’s sustainability landscape. Use it as a quick reference to navigate conversations, policies, and reporting requirements with confidence — and remember, our ESG consultants are always on hand to help with the more complex details.

Key Terms and Acronyms:

• ESG: ESG definition is a framework or criteria to measure the sustainability and ethical impact of an investment of a company focusing on 3 fields: Environmental, Social and Corporate Governance
• CSRD: The Corporate Sustainability Reporting Directive requires companies to report on the impact of corporate activities on the environment and society, and requires the audit (assurance) of reported information.
• ESRS: The European Sustainability Reporting Standards (ESRS) are the guidelines that outline the reporting requirements under the Corporate Sustainability Reporting Directive (CSRD).
• Carbon emissions: Carbon Dioxide (CO2) is a colourless, odourless and non-poisonous gas formed by combustion of carbon and in the respiration of living organisms and is considered a greenhouse gas. Emissions means the release of greenhouse gases and/or their precursors into the atmosphere over a specific area and period of time. Carbon dioxide emissions or CO2 emissions are the emissions stemming from the burning of fossil fuels and the manufacturing of cement; they include carbon dioxide produced during consumption of solid, liquid and gas fuels as well as gas flaring.

• DMA: A Double Materiality Assessment is a process companies use to identify and prioritize sustainability matters that are most relevant to their business and stakeholders. It considers both the impact a company has on the environment and society and how sustainability-related issues affect the company’s financial performance.
• Scope 1 Emissions: Direct emissions from owned or controlled sources.
• Scope 2 Emissions: Indirect emissions from the generation of purchased energy,
• Scope 3 Emissions: All indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company including both upstream and downstream emissions.
• Greenwashing: Greenwashing is a deceptive marketing practice where a company falsely promotes their products, services or overall environmental practices as environmentally friendly.
• Green Loans: A green loan is a form of financing that enables borrowers to use the proceeds to exclusively fund projects that make a substantial contribution to an environmental objective.
• VSRS Reporting: Voluntary Sustainability Reporting Standard is a voluntary guideline designed for micro, small and medium sized companies that are not subject to the reporting obligations of CSRD. The standard is designed to enable these companies to present ESG information in a simplified, proportionate and tailored manner to better meet the growing information needs of business partners and financial institutions.
• Net-Zero Roadmaps: A Net Zero Roadmap is a com[prehensive plan outlining steps and strategies an organisation will take to achieve net-zero greenhouse gas emissions by a specific target date. It details how the organisation will reduce its emissions across its entire value chain, and what methods will be used to offset any remaining emissions through carbon removal or other means.
• SBTi: Science Based Targets Organisations is a corporate climate action organisation that defines and promotes best practices for companies and financial institutions to set emissions reduction and net-zero targets in line with climate-science. It essentially provides a framework for organisations to align their climate action with the goals of the Paris Agreement, which aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels.

• CDP: The Committee for Development Policy is a subsidiary body of the United Nations Economic and Social Council (ECOSOC). The CDP is the only global system for companies and cities to measure, disclose, manage and share vital environmental information.
• PPN 0621: sets out how suppliers’ Carbon Reduction Plans and commitment to Net Zero can be taken into account in the procurement of in-scope central Government contracts. 
• CRP: A Carbon Reduction Plan is a comprehensive strategy that outlines how an organisation will minimise its greenhouse gas emissions.
• SECR Streamlined Energy and Carbon Reporting. It is a mandatory framework in the UK that requires large companies and limited liability partnerships to disclose their energy consumption and greenhouse gas emissions. 
• GHG Emissions Green House Gas Emissions refer to the release of gases into the Earth’s atmosphere that trap heat and contribute to climate change. 
• Taxonomies: The taxonomy is a classification system that defines criteria for economic activities that are aligned with net zero trajectory by 2050 and the broader environmental goals other than climate.