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ESG & Sustainability Key Terms Guide

The document serves as a comprehensive reference guide on Environment, Social, and Governance (ESG) principles and frameworks, detailing key terms and standards related to sustainability and ethical practices. It covers various organizations and regulations such as GRI, SASB, UNGC, and EU Taxonomy, which guide companies in their ESG reporting and practices. Additionally, it highlights concepts like stakeholder engagement, social responsibility, and corporate governance that are essential for businesses to thrive in the ESG landscape.

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Arnab Roy
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0% found this document useful (0 votes)
24 views29 pages

ESG & Sustainability Key Terms Guide

The document serves as a comprehensive reference guide on Environment, Social, and Governance (ESG) principles and frameworks, detailing key terms and standards related to sustainability and ethical practices. It covers various organizations and regulations such as GRI, SASB, UNGC, and EU Taxonomy, which guide companies in their ESG reporting and practices. Additionally, it highlights concepts like stakeholder engagement, social responsibility, and corporate governance that are essential for businesses to thrive in the ESG landscape.

Uploaded by

Arnab Roy
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Learn, Adapt, and Thrive in the Era of ESG

Environment,
Social &
Governance
Reference Book
A Guide to Key Terms in ESG & sustainability

Connect with us Visit our website


+91 8247722482 || +91 8121822324 [Link]
ESG is a framework used to assess a company's operations
based on their environmental, social, and governance
ESG performance, reflecting their sustainability and ethical
practices.

A widely adopted framework for sustainability reporting that


GRI provides guidelines for organizations to disclose their
environmental, social, and economic impacts transparently.

Tattva ESG Solutions || ESG Academy


SASB is a standard-setting body that develops industry-specific
SASB sustainability accounting standards for companies to disclose
financially material ESG (non-financial) factors.

UNGC is a global initiative encouraging businesses to adopt


UNGC sustainable practices aligned with ten principles covering
human rights, labor, environment, and anti-corruption.

Tattva ESG Solutions || ESG Academy


UNEP is one of the the UN's agencies focused on promoting
UNEP environmental sustainability through global advocacy, policies,
and cooperation.

TCFD is a framework providing guidelines for companies to

TCFD disclose climate-related financial risks and opportunities,


promoting better understanding and management of these
risks.

Tattva ESG Solutions || ESG Academy


CSRD is an European Union regulation mandating detailed
CSRD sustainability reporting by companies to improve transparency
and accountability on environmental and social issues.

SFDR is an EU regulation designed to enhance transparency


SFDR around sustainable investments by requiring financial market
participants to disclose sustainability risks.

Tattva ESG Solutions || ESG Academy


EU EU Taxonomy is a classification system developed by the EU
that defines criteria for determining whether an economic
activity is environmentally sustainable, supporting the transition
Taxonomy to a low-carbon economy.

BRSR is a mandatory reporting framework introduced by SEBI


BRSR for listed companies in India, requiring them to disclose their
ESG performance.

Tattva ESG Solutions || ESG Academy


EcoVadis is a global platform that evaluates and rates
EcoVadis companies on their environmental, social, and governance
practices to help improve sustainability performance.

Principles for PRI is a set of voluntary principles for integrating ESG factors
Responsible into investment decision-making, supported by the UN to
encourage responsible investment.
Investment

Tattva ESG Solutions || ESG Academy


An international standard offering guidance on social
ISO 26000 responsibility to help organizations operate in an ethical and
transparent manner.

A standard providing requirements for establishing an effective


ISO 14001 environmental management system (EMS),
organizations minimize their environmental impact.
helping

Tattva ESG Solutions || ESG Academy


Social A certification standard ensuring that workplaces meet high
Accountability social responsibility standards, including fair wages, safe
working conditions, and respect for workers' rights.
(SA) 8000

A set of 17 global goals designed to address challenges like


UN SDGs poverty, inequality, climate change, and environmental
degradation, aiming for a sustainable future by 2030.

Tattva ESG Solutions || ESG Academy


Global standards for financial reporting, with the IFRS
IFRS Foundation expanding to include sustainability disclosures
through the ISSB.

A global organization that develops standardized sustainability


ISSB reporting frameworks for consistent and comparable ESG
disclosures.

Tattva ESG Solutions || ESG Academy


An assurance standard providing guidelines for auditing and
ISAE 3000 providing assurance on non-financial information, including
ESG reports.

An international assurance standard specifically for verifying


ISAE 3410 the accuracy and completeness of greenhouse gas (GHG)
emissions statements.

Tattva ESG Solutions || ESG Academy


The concept of identifying which ESG issues are significant
Materiality enough to impact a company’s financial performance or
stakeholder interests.

Double A concept recognizing that ESG issues can affect both a


company's financial performance and the external impact the
Materiality company has on society and the environment.

Tattva ESG Solutions || ESG Academy


Stakeholder The process of involving individuals or groups affected by or
interested in an organization’s decisions or operations, ensuring
Engagement their concerns are addressed.

Socially An investment strategy that seeks both financial returns and


Responsible positive social or environmental impacts, considering ESG
factors in decision-making.
Investing

Tattva ESG Solutions || ESG Academy


Circular An economic model focused on reducing waste by reusing,
recycling, and regenerating materials throughout the product
Economy lifecycle.

Water The responsible use and management of water resources by


businesses and organizations to ensure sustainability and
Stewardship equitable access.

Tattva ESG Solutions || ESG Academy


The variety of life forms within an ecosystem, essential for
Biodiversity maintaining ecological balance and considered a key aspect of
environmental sustainability.

Supply Chain The practice of managing environmental, social, and ethical


impacts throughout a company’s supply chain to ensure
Responsibility responsible business practices.

Tattva ESG Solutions || ESG Academy


Human Rights A process companies use to identify, prevent, and mitigate their
adverse impacts on human rights throughout their operations
Due Diligence and supply chains.

Gender Ensuring fair treatment, opportunities, and outcomes for all


genders, typically as part of a company’s social responsibility
Equality initiatives.

Tattva ESG Solutions || ESG Academy


Diversity and Efforts to ensure diverse representation of backgrounds,
identities, and experiences, and creating an inclusive workplace
Inclusion where everyone feels valued.

Corporate The system of rules, practices, and processes by which a


company is directed and controlled, ensuring accountability
Governance and ethical behavior.

Tattva ESG Solutions || ESG Academy


Whistleblower A policy that protects employees who report unethical or illegal
activities within an organization, encouraging transparency and
Policy accountability.

Board A governance principle requiring a company’s board to include


independent directors who do not have conflicts of interest,
Independence ensuring impartial decision-making.

Tattva ESG Solutions || ESG Academy


Ethical The practice of ensuring that the products or materials a
company buys are sourced in a responsible and sustainable
manner, with consideration for social and environmental
Sourcing impact.

Labor The rights of workers to fair treatment, safe working conditions,


and the freedom to organize and bargain collectively.
Rights

Tattva ESG Solutions || ESG Academy


Fair A movement that aims to ensure producers in developing
countries receive fair wages and work under safe, ethical
Trade conditions.

Anti-Bribery A policy or practice designed to prevent corruption, bribery, and


unethical conduct in business operations.
Policy

Tattva ESG Solutions || ESG Academy


Sustainable The practice of sourcing goods and services in a way that
minimizes negative environmental and social impacts.
Procurement

Social The effect an organization’s actions have on society, often


assessed in terms of improving communities, livelihoods, or well-
Impact being.

Tattva ESG Solutions || ESG Academy


Human
Capital Managing and developing an organization's workforce to
maximize employee well-being, engagement, and productivity.

Management

A global index tracking the performance of companies with


DJSI strong ESG practices and sustainability leadership.

Tattva ESG Solutions || ESG Academy


Human Fundamental rights and freedom to which all individuals are
entitled, often protected under international law and company
Rights policies.

A certification for companies that meet rigorous standards of


B Corp social and environmental performance, accountability, and
transparency.

Tattva ESG Solutions || ESG Academy


Sustainable Managing the environmental, social, and economic impacts of
a company’s supply chain in a way that promotes sustainability.
Supply Chain

Responsible Marketing that is transparent, ethical, and mindful of the well-


being of consumers and the broader community.
Marketing

Tattva ESG Solutions || ESG Academy


Human The illegal exploitation of people through force, fraud, or
coercion for the purposes of forced labor or sexual exploitation.
Trafficking

Fair A wage that allows workers to meet their basic needs, maintain
a decent standard of living, and participate fully in society.
Wage

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Forced Labor performed under threat or coercion, often characterized
by exploitation and denial of freedom.
Labor

Child The employment of children in work that deprives them of their


rights to education, safety, and a healthy development.
Labor

Tattva ESG Solutions || ESG Academy


Workplace Practices and policies to protect workers from accidents,
injuries, and exposure to hazardous conditions in the workplace.
Safety

Decent Employment that provides fair wages, security, social


protection, and respect for workers' rights, while promoting a
Work safe and healthy working environment.

Tattva ESG Solutions || ESG Academy


Community Contributions made by a company to improve the social,
economic, and environmental well-being of the communities in
Investment which they operate.

Indigenous The rights of indigenous peoples to maintain their cultural


identity, traditional practices, and land, recognized
Rights

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LEARN MORE?
Explore our additional ESG-Sustainability resources,
courses, and expert insights!

Connect with us
+91 8247722482 (or) +91 8121822324

Visit our website


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