ESG Glossary
ESG Glossary — comprehensive ESG resource from ESG Hub, an open-access encyclopedia by Ascent Partners Foundation.
ESG Glossary
Comprehensive A-Z terminology for sustainability professionals
A
Absolute Emissions — Total greenhouse gas emissions measured in tonnes of CO₂ equivalent, without normalization.
Additionality — Principle that a carbon project would not have happened without carbon finance.
Assurance — Independent verification of sustainability reports by third-party auditors.
B
Baseline — Reference point for measuring emissions reductions or impact.
Biodiversity — Variety of life on Earth at genetic, species, and ecosystem levels.
Biogeochemical Flows — Planetary boundary tracking nitrogen and phosphorus cycles.
C
Carbon Credit — Tradable certificate representing one tonne of CO₂ equivalent removed or avoided.
Carbon Footprint — Total GHG emissions caused directly and indirectly by an entity.
CDP — Global disclosure system for environmental impacts (climate, water, forests).
Circular Economy — Economic model eliminating waste through design and regeneration.
Climate Risk — Physical risk (extreme weather) and transition risk (policy, technology shifts).
D
Double Materiality — EU concept requiring disclosure of both financial materiality and impact materiality.
Due Diligence — Process to identify, prevent, mitigate adverse impacts in operations and value chains.
E
Ecosystem Services — Benefits from nature: provisioning, regulating, cultural, supporting.
ESRS — European Sustainability Reporting Standards under EU CSRD.
Extended Producer Responsibility — Policy requiring producers to manage end-of-life disposal.
F
Financed Emissions — Scope 3 Category 15 emissions from investment and lending portfolios.
Fundamental Principles and Rights at Work — ILO core: freedom of association, collective bargaining, elimination of forced labour, child labour, discrimination.
G
GHG Protocol — Global standard for measuring corporate greenhouse gas emissions.
Greenwashing — Misleading claims about environmental benefits.
GRI — Global Reporting Initiative sustainability reporting framework.
I
IFRS S1 & S2 — ISSB standards effective 2024: S1 (general sustainability), S2 (climate).
Impact Materiality — Company's significant impacts on people and environment.
ISO 26000 — International guidance on social responsibility.
ISSB — International Sustainability Standards Board issuing global disclosure standards.
L
LEAP Approach — TNFD's process: Locate, Evaluate, Assess, Prepare.
Life Cycle Assessment — Cradle-to-grave analysis of product environmental impacts.
M
Materiality — Issues that could substantially influence stakeholder decisions.
MSA — Mean Species Abundance biodiversity metric.
N
Nature-related Risks — Risks from biodiversity loss and ecosystem degradation.
Net Zero — Balancing residual emissions with removals.
Novel Entities — Planetary boundary for synthetic chemicals, plastics, nanomaterials.
O
OECD Principles — G20/OECD corporate governance framework (2023 revision).
P
Paris Agreement — 2015 UN treaty limiting warming to well below 2°C, preferably 1.5°C.
PCAF — Partnership for Carbon Accounting Financials standard.
Physical Risk — Climate-related: acute (storms) and chronic (temperature rise).
Planetary Boundaries — 9 Earth system thresholds defining safe operating space.
S
SASB — Sustainability Accounting Standards Board industry-specific framework.
SBTi — Science Based Targets initiative validating emissions reduction targets.
Scope 1/2/3 Emissions — Direct, purchased electricity, and value chain emissions.
SDGs — UN's 17 Sustainable Development Goals for 2030.
SROI — Social Return on Investment methodology.
Stakeholder — Parties affected by or able to affect an organization.
T
TCFD — Task Force on Climate-related Financial Disclosures framework.
TNFD — Taskforce on Nature-related Financial Disclosures framework.
Transition Plan — Roadmap detailing how organization will achieve sustainability goals.
Transition Risk — Climate-related policy, technology, market, reputational risks.
U
UN Global Compact — Voluntary corporate sustainability initiative with 10 principles.
UNGPs — UN Guiding Principles on Business and Human Rights.
V
Value Chain — Full range of upstream and downstream activities.
Verification — Third-party confirmation that carbon credits meet standards.
VCM — Voluntary Carbon Market for trading credits outside compliance schemes.
W
Water Footprint — Total freshwater volume consumed and polluted.
WBCSD — World Business Council for Sustainable Development.