ESG Glossary

A structured reference of ESG terms, concepts, and frameworks.

Explore key ESG terminology—from climate risk and Scope 3 emissions to CSRD, double materiality, and sustainability frameworks.

This glossary helps you quickly understand concepts and navigate to deeper insights.

Use this glossary to quickly understand ESG terms or navigate to detailed guides.

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A

Asset Valuation

How ESG factors influence the value of assets and investments—used in financial analysis and risk assessment.

Finance
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B

Biodiversity Risk

Risks arising from ecosystem degradation and biodiversity loss—affecting operations and regulatory compliance.

Climate
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C

Carbon Footprint

Total greenhouse gas emissions associated with an organization, product, or activity—used to measure environmental impact and track reduction efforts.

Climate
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Climate Risk

Financial and operational risks arising from climate change affecting assets, operations, and financial performance.

Climate
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CSRD (Corporate Sustainability Reporting Directive)

EU regulation requiring detailed ESG disclosures—affecting companies operating in Europe.

Regulation
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D

Double Materiality

Assessing both financial impact and environmental/social impact—central to EU ESG regulations.

Regulation
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E

ESG (Environmental, Social, Governance)

Framework for evaluating sustainability and business impact—used by investors and regulators.

Metrics
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ESG Metrics

Indicators used to measure ESG performance—essential for reporting and decision-making.

Metrics
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ESG Reporting

Disclosure of ESG-related data to stakeholders—required by regulations and investors.

Metrics
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F

Financial Materiality

ESG factors that impact financial performance—central to investor analysis and valuation.

Finance
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G

Greenwashing

Misleading claims about sustainability performance—a risk to reputation and regulatory compliance.

Regulation
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GRI (Global Reporting Initiative)

A widely used ESG reporting framework—provides standards for sustainability reporting.

Regulation
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I

ISSB (International Sustainability Standards Board)

Global sustainability disclosure standards (IFRS S1, S2)—used for ESG reporting worldwide.

Regulation
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N

Net Zero

Achieving balance between emissions produced and removed—a key climate commitment.

Climate
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S

Scope 1 Emissions

Direct emissions from owned operations—part of carbon footprint measurement.

Climate
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Scope 2 Emissions

Indirect emissions from purchased energy—part of carbon footprint measurement.

Climate
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Scope 3 Emissions

Indirect emissions across the value chain—often the largest portion of carbon footprint.

Climate
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T

TCFD (Task Force on Climate-related Financial Disclosures)

Framework for climate-related financial reporting—used by companies worldwide.

Regulation
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V

Value Chain Emissions

Emissions across upstream and downstream activities—part of Scope 3 measurement.

Supply Chain
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Explore ESG concepts in depth across risk, regulation, data, and financial impact.