Jargon Busting

Biodiversity

The variety of life in a particular habitat or ecosystem. Biodiversity is crucial for ecosystem health and resilience, providing essential services such as pollination, water purification, and climate regulation.

Carbon Footprint

The total amount of greenhouse gases (GHGs) emitted directly or indirectly by an individual, organization, event, or product. Reducing carbon footprints is essential for combating climate change.

Carbon Neutrality

Achieving net-zero carbon emissions by balancing the amount of carbon emitted with the amount removed from the atmosphere, often through measures such as reforestation or carbon offsetting. Companies often set goals for carbon neutrality to address their environmental impact.

Circular Economy

An economic system aimed at eliminating waste and the continual use of resources. In a circular economy, products are designed for durability, repairability, and recyclability, contrasting with the traditional linear model of "take-make-dispose."

Corporate Social Responsibility (CSR)

A business model where companies integrate social and environmental concerns into their operations and interactions with stakeholders. CSR goes beyond compliance and engages in actions that further social good.

ESG (Environmental, Social, and Governance)

A set of criteria used to evaluate a company's operations and sustainability practices. Environmental criteria consider how a company performs as a steward of nature, social criteria examine how it manages relationships with stakeholders, and governance deals with its leadership and compliance.

Greenwashing

The practice of promoting an organization's products, services, or policies as environmentally friendly when they are not, often misleading consumers about the actual sustainability practices of the company.

Materiality Assessment

A process used to determine the ESG issues that are most significant to a company and its stakeholders. This assessment helps prioritize ESG initiatives based on their impact on business performance and stakeholder expectations.

Environmental Impact Assessment (EIA)

A process used to evaluate the potential environmental effects of a proposed project or development before it begins. EIAs are essential for ensuring that environmental factors are considered in decision-making.

Social License to Operate

The ongoing acceptance and approval of a company's operations by its stakeholders, particularly local communities. Gaining and maintaining a social license is vital for long-term business success, especially in industries with significant social and environmental impacts.

Green Finance

Financial investments flowing into sustainable development projects and initiatives that promote environmental sustainability. This can include green bonds, loans for renewable energy projects, or funds dedicated to sustainable investments.

Stakeholders

Individuals or groups that have an interest in the decisions and actions of a business, including employees, customers, investors, suppliers, communities, and regulatory bodies. Engaging stakeholders is crucial for successful ESG implementation.

Stakeholder Engagement

The process of involving individuals, groups, or organizations that may affect or be affected by a company's decisions and actions. Effective engagement can lead to better decision-making, increased trust, and improved sustainability outcomes.

Supply Chain Transparency

The practice of revealing information about the supply chain, including sourcing, production processes, and logistics. Enhanced transparency helps companies identify and address ESG risks and improve sustainability practices within their supply chains.

Sustainability Reporting

The practice of publishing information about an organization’s economic, environmental, and social impacts, aimed at enhancing transparency and accountability. Companies often follow frameworks like the Global Reporting Initiative (GRI) or Sustainability Accounting Standards Board (SASB) to structure their reports.

Triple Bottom Line (TBL)

A framework that encourages businesses to focus on social, environmental, and financial performance. The TBL framework evaluates a company's commitment to sustainability beyond just financial profit, emphasizing the importance of social equity and environmental stewardship.

Diversity and Inclusion (D&I)

Policies and practices aimed at creating a diverse workforce and fostering an inclusive workplace culture where all employees feel valued and respected. D&I is a critical component of the social aspect of ESG.

Impact Measurement

The process of assessing the actual social, environmental, and economic impacts of a company's activities and initiatives. This involves using metrics and indicators to evaluate progress and effectiveness in achieving ESG goals.

Environmental Stewardship

The responsible management and protection of the natural environment through conservation and sustainable practices. It encompasses actions taken by individuals and organizations to minimize their ecological footprint.