Glossary

Sustainability Glossary

Clear definitions for the terms shaping sustainability strategy, ESG reporting, and climate policy.

B

B Corp Certification

Learn about B Corp certification, the rigorous standard verifying businesses that balance purpose and profit across governance, workers, community, and environment.

Social Impact

Benefit Corporation

Explore benefit corporations, the legal business structure that empowers directors to balance profit with positive impact on society and the environment.

Social Impact

Biodiversity

Explore biodiversity: the variety of life on Earth, why it underpins economic systems, and how organizations measure and protect biological diversity.

Biodiversity

Biodiversity Net Gain

Learn about biodiversity net gain (BNG): a planning requirement that developments must leave biodiversity in a measurably better state than before.

Biodiversity

Biodiversity Offsets

Understand biodiversity offsets: conservation actions designed to compensate for residual ecological impacts of development after avoidance and minimization.

Biodiversity

Biomimicry

Biomimicry is the practice of designing materials, products, and systems modeled on biological processes and organisms to solve human engineering challenges.

Supply Chain

Blue Economy

The blue economy encompasses sustainable use of ocean resources for growth, jobs, and ecosystem health. Learn key sectors, governance frameworks, and investment trends.

Biodiversity

Blue-Green Infrastructure

Blue-green infrastructure integrates water management with urban green spaces, combining natural drainage with parks and wetlands for climate resilience.

Water & Infrastructure

Board Oversight of Sustainability

Learn how effective board oversight of sustainability drives ESG performance, manages climate risk, and meets evolving regulatory and investor expectations.

Governance

C

Cap-and-Trade

Learn how cap-and-trade emissions trading systems work, setting enforceable limits on pollution while allowing market-based flexibility for compliance.

Carbon & Energy

Carbon Accounting

Learn about carbon accounting: methods for measuring, tracking, and reporting organizational greenhouse gas emissions across Scopes 1, 2, and 3.

Carbon & Energy

Carbon Border Adjustment Mechanism

Understand the EU's Carbon Border Adjustment Mechanism (CBAM): how it works, which sectors it covers, and implications for global trade and carbon pricing.

Carbon & Energy

Carbon Capture and Storage

Understand carbon capture and storage (CCS) technology, how it captures CO2 from industrial sources, and its role in hard-to-abate sector decarbonization.

Carbon & Energy

Carbon Credits

Understand carbon credits: tradeable certificates representing one tonne of CO₂ reduced or removed, used in compliance and voluntary carbon markets.

Carbon & Energy

Carbon Cycle

The carbon cycle is the biogeochemical process by which carbon moves between the atmosphere, oceans, land, and living organisms over varying timescales.

Climate Resilience

Carbon Footprint

Learn how to measure and reduce your organization's carbon footprint across Scope 1, 2, and 3 emissions using the GHG Protocol methodology.

Carbon & Energy

Carbon Insetting

Discover how carbon insetting reduces emissions within a company's own value chain, offering a credible alternative to traditional carbon offsetting.

Carbon & Energy

Carbon Neutrality

Understand carbon neutrality: what it means, how organizations achieve it through emissions reduction and offsets, and why it matters for climate strategy.

Carbon & Energy

Carbon Offsets

Learn about carbon offsets: how they work, quality criteria, controversies, and their role in corporate climate strategies alongside direct emissions reductions.

Carbon & Energy

Carbon Pricing

Understand carbon pricing mechanisms including carbon taxes and cap-and-trade systems that put a financial cost on greenhouse gas emissions.

Carbon & Energy

Carbon Tax

Explore how carbon taxes work as a climate policy tool, setting a fixed price on greenhouse gas emissions to incentivize decarbonization across industries.

Carbon & Energy

CDP Disclosure

CDP operates the global environmental disclosure system where companies, cities, and states report climate, water, and forest data to investors and buyers.

ESG Reporting

Circular Economy

Understand the circular economy: a systems approach to eliminating waste, keeping materials in use, and regenerating natural systems for sustainability.

Supply Chain

CITES

Learn about CITES: the international treaty regulating trade in endangered species of wild fauna and flora to prevent extinction from commercial exploitation.

Biodiversity

Climate Action Plan

A climate action plan is a strategic framework that outlines specific measures an organization or government will take to reduce emissions and build resilience.

Climate Resilience

Climate Adaptation

Climate adaptation refers to the process of adjusting systems, practices, and infrastructure to reduce vulnerability to the actual and expected effects of climate change.

Carbon & Climate

Climate Anxiety

Climate anxiety is the chronic distress and worry about climate change and its consequences, increasingly recognized as a significant mental health and workplace issue.

Climate Resilience

Climate Attribution Science

Climate attribution science quantifies how much human-caused climate change contributed to the likelihood or intensity of specific extreme weather events.

Climate Resilience

Climate Feedback Loops

Climate feedback loops are self-reinforcing or self-dampening cycles in the Earth system where an initial change triggers responses that amplify or reduce it.

Climate Resilience

Climate Justice

Climate justice frames climate change as an ethical and political issue, emphasizing equitable distribution of climate burdens and benefits across communities.

Climate Resilience

Climate Migration

Climate migration refers to the movement of people driven by climate change impacts including sea-level rise, drought, flooding, and extreme weather events.

Climate Resilience

Climate Mitigation

Climate mitigation refers to actions that reduce or prevent greenhouse gas emissions to limit the severity of long-term climate change impacts.

Climate Resilience

Climate Modeling

Climate modeling uses mathematical simulations of the Earth's climate system to project future temperature, precipitation, and extreme weather patterns.

Climate Resilience

Climate Resilience

Climate resilience is the capacity of communities, ecosystems, and economies to anticipate, absorb, and recover from climate-related shocks and stresses.

Climate Resilience

Climate Risk Disclosure

Climate risk disclosure is the practice of reporting an organization's exposure to climate-related financial risks and its strategies for managing them.

Climate Resilience

Climate Tipping Points

Climate tipping points are critical thresholds in the Earth system beyond which changes become self-reinforcing and potentially irreversible on human timescales.

Climate Resilience

Climate Vulnerability Assessment

A climate vulnerability assessment evaluates how exposed and sensitive a system is to climate hazards and its capacity to adapt to changing conditions.

Climate Resilience

Combined Sewer Overflows

Combined sewer overflows (CSOs) discharge untreated sewage and stormwater into waterways during heavy rain, posing public health and environmental risks.

Water & Infrastructure

Community Engagement in ESG

Learn how community engagement strengthens ESG strategy, builds social license to operate, and drives measurable impact for businesses and stakeholders.

Social Impact

Community Resilience

Community resilience is the sustained ability of a community to withstand, adapt to, and recover from shocks like climate disasters and economic disruption.

Social Impact

Compliance Carbon Market

Learn how compliance carbon markets work, including cap-and-trade systems and emissions trading schemes that regulate greenhouse gas output across industries.

Carbon & Energy

Conflict Minerals

Conflict minerals are natural resources extracted in conflict zones where mining revenues finance armed groups and fuel human rights abuses.

Supply Chain

Coral Reef Restoration

Coral reef restoration rebuilds degraded reef ecosystems through active intervention. Learn methods, costs, scalability challenges, and the role of climate adaptation.

Biodiversity

Corporate Sustainability

Understand corporate sustainability strategy, frameworks, and implementation—from ESG integration to long-term value creation and regulatory compliance.

ESG Reporting

Cradle to Cradle

Learn about Cradle to Cradle design: a framework for creating products with materials that cycle safely through biological or technical loops indefinitely.

Supply Chain

CSRD

The Corporate Sustainability Reporting Directive is EU legislation requiring comprehensive sustainability disclosures from large companies operating in or connected to European markets.

Reporting & Disclosure

E

E-Waste Management

E-waste management encompasses the collection, refurbishment, recycling, and safe disposal of discarded electronic and electrical equipment to recover materials and prevent pollution.

Supply Chain

Ecosystem Services

Learn about ecosystem services: the benefits nature provides to human societies, from pollination and water purification to climate regulation and recreation.

Biodiversity

Electrification

Understand how electrification replaces fossil fuel combustion with electric alternatives across transport, heating, and industry to cut carbon emissions.

Carbon & Energy

Endangered Species Act

Understand the US Endangered Species Act (ESA): landmark legislation protecting threatened and endangered species and their critical habitats since 1973.

Biodiversity

Energy Efficiency

Discover how energy efficiency reduces costs and emissions by minimizing energy waste across buildings, industry, and transportation systems.

Carbon & Energy

Energy Transition

Explore the global energy transition from fossil fuels to clean energy sources, including drivers, timelines, and implications for business strategy.

Carbon & Energy

Environmental Justice

Environmental justice ensures that no community bears a disproportionate share of pollution and environmental hazards due to race, income, or political power.

Social Impact

ESG Benchmarking

Learn how ESG benchmarking compares sustainability performance against peers, standards, and best practices to drive improvement and investor confidence.

ESG Reporting

ESG Data Management

Explore best practices for ESG data management—collection, validation, governance, and audit readiness for sustainability reporting.

ESG Reporting

ESG Due Diligence

Understand ESG due diligence requirements for M&A, supply chains, and regulatory compliance under CS3D, CSRD, and national due diligence laws.

ESG Reporting

ESG Governance

Understand ESG governance—the board structures, policies, and oversight mechanisms that embed environmental and social accountability into corporate leadership.

Governance

ESG Integration

ESG integration is the systematic inclusion of environmental, social, and governance factors into investment analysis and portfolio decision-making processes.

ESG Reporting

ESG Ratings

ESG ratings are scores assigned by specialized agencies that assess a company's environmental, social, and governance risk exposure and management quality.

ESG Reporting

ESG Reporting

ESG reporting is the structured disclosure of environmental, social, and governance performance data to investors, regulators, and stakeholders.

ESG Reporting

ESRS

European Sustainability Reporting Standards (ESRS) are the mandatory disclosure requirements under the EU's Corporate Sustainability Reporting Directive.

ESG Reporting

EU Green Deal

The European Green Deal is the EU's comprehensive policy framework targeting climate neutrality by 2050 through regulation, investment, and economic transformation.

ESG Reporting

EU Taxonomy

The EU Taxonomy is a classification system defining which economic activities qualify as environmentally sustainable for investment and reporting purposes.

ESG Reporting

EUDR (EU Deforestation Regulation)

The EU Deforestation Regulation requires companies to prove commodities are deforestation-free. Learn EUDR scope, timelines, compliance steps, and penalties.

Biodiversity

Executive Compensation Tied to ESG

Explore how linking executive pay to ESG metrics drives accountability, aligns incentives with sustainability goals, and shapes corporate behavior.

Governance

Extended Producer Responsibility

Explore extended producer responsibility (EPR): policies that hold manufacturers accountable for the full lifecycle impacts of their products and packaging.

Supply Chain

Extreme Weather Events

Extreme weather events are severe atmospheric phenomena intensified by climate change, including hurricanes, heat waves, droughts, floods, and wildfires.

Climate Resilience

G

Gender Lens Investing

Discover how gender lens investing integrates gender analysis into investment decisions to drive financial returns and advance gender equity outcomes.

Social Impact

GHG Protocol

Learn about the GHG Protocol: the global standard for measuring and managing greenhouse gas emissions across corporate, value chain, and product levels.

Carbon & Energy

Global Warming Potential

Global warming potential (GWP) measures how much heat a greenhouse gas traps in the atmosphere relative to CO₂ over a specified time horizon.

Climate Resilience

Green Bonds

Learn about green bonds—fixed-income instruments that fund environmental projects, from renewable energy to climate adaptation, with growing global issuance.

Governance

Green Chemistry

Green chemistry designs chemical products and processes that reduce or eliminate hazardous substances, minimizing environmental and health impacts at the molecular level.

Supply Chain

Green Claims Directive

Understand the EU Green Claims Directive—its requirements for substantiating environmental claims, timelines, and compliance implications.

ESG Reporting

Green Hydrogen

Learn about green hydrogen produced via renewable-powered electrolysis, its applications in hard-to-abate sectors, and the path to commercial viability.

Carbon & Energy

Green Infrastructure

Green infrastructure uses natural systems like wetlands, bioswales, and urban forests to manage stormwater, reduce flooding, and build climate resilience.

Water & Infrastructure

Greenhouse Gas Emissions

Greenhouse gas emissions are releases of heat-trapping gases into the atmosphere from human activities, primarily burning fossil fuels and land use changes.

Climate Resilience

Greenwashing

Greenwashing is the practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or company to appear more sustainable than reality warrants.

Governance & Ethics

GRI Standards

GRI Standards are the most widely adopted global framework for sustainability reporting, enabling organizations to disclose their impacts on economy and society.

ESG Reporting

I

IFRS S1 and S2

IFRS S1 and S2 are the ISSB's inaugural sustainability disclosure standards covering general requirements and climate-related financial disclosures.

ESG Reporting

Impact Investing

Learn how impact investing generates measurable social and environmental outcomes alongside financial returns, reshaping global capital allocation.

Social Impact

Impact Materiality

Understand impact materiality under the CSRD and ESRS—how companies assess their outward effects on people, society, and the environment.

ESG Reporting

Inclusive Economy

Explore the inclusive economy framework—how equitable access to opportunity, assets, and markets drives sustainable growth and stronger ESG outcomes.

Social Impact

Indigenous Rights and Sustainability

Indigenous rights and sustainability connects land rights, traditional knowledge, and self-determination of indigenous peoples to global environmental outcomes.

Social Impact

Industrial Symbiosis

Industrial symbiosis is a collaborative approach where waste or byproducts from one industry become raw materials for another, reducing costs and emissions.

Supply Chain

Integrated Reporting

Learn how integrated reporting connects financial and non-financial performance to show how organizations create value over time.

ESG Reporting

Integrated Water Resource Management

Integrated water resource management (IWRM) coordinates water, land, and related resources to maximize economic and social welfare without compromising ecosystems.

Water & Infrastructure

Internal Carbon Pricing

Discover internal carbon pricing: how organizations use shadow prices and internal fees to drive low-carbon investment decisions and manage climate risk.

Carbon & Energy

Invasive Species Management

Invasive species management prevents and controls non-native organisms that threaten ecosystems and economies. Learn detection methods, control strategies, and costs.

Biodiversity

ISSB

The International Sustainability Standards Board develops global baseline sustainability disclosure standards for capital markets under the IFRS Foundation.

ESG Reporting

S

SASB Standards

SASB Standards provide industry-specific sustainability metrics designed to identify financially material ESG factors for 77 distinct industries.

ESG Reporting

Science-Based Targets

Explore science-based targets (SBTs): how companies set emissions reduction goals aligned with climate science and the Paris Agreement's 1.5°C pathway.

Carbon & Energy

Scope 1 Emissions

Understand Scope 1 emissions: direct greenhouse gas emissions from owned or controlled sources, measurement methods, and reduction strategies.

Carbon & Energy

Scope 2 Emissions

Learn about Scope 2 emissions from purchased energy, the difference between location and market-based methods, and strategies for reduction.

Carbon & Energy

Scope 3 Emissions

Scope 3 emissions are indirect greenhouse gas emissions that occur across a company's value chain, both upstream and downstream of its direct operations.

Carbon & Climate

Scope 3 Supply Chain Emissions

Scope 3 supply chain emissions are indirect greenhouse gas emissions from a company's value chain, often representing over 70% of its total carbon footprint.

Supply Chain

Sea-Level Rise

Sea-level rise refers to the increase in ocean surface height driven by thermal expansion of warming water and melting land-based ice sheets and glaciers.

Climate Resilience

SEC Climate Rule

The SEC climate disclosure rule requires U.S. public companies to report material climate risks, GHG emissions, and governance in their SEC filings.

ESG Reporting

Single Materiality

Single materiality assesses sustainability topics based solely on their financial impact on the company, contrasting with double materiality's broader scope.

ESG Reporting

Social Enterprise

Understand social enterprises—businesses that prioritize social or environmental missions while sustaining operations through commercial revenue.

Social Impact

Social License to Operate

Social license to operate is the ongoing acceptance and approval of a company's activities by local communities, stakeholders, and the broader public.

Social Impact

Social Return on Investment

Understand Social Return on Investment (SROI), the framework for measuring social and environmental value in financial terms for ESG reporting.

Social Impact

Soil Carbon Sequestration

Soil carbon sequestration captures atmospheric CO₂ in soil organic matter. Learn the science, measurement challenges, and carbon market opportunities for landowners.

Biodiversity

Stakeholder Capitalism

Understand stakeholder capitalism, the business model that balances shareholder returns with employee, community, and environmental well-being.

Social Impact

Stakeholder Engagement

Discover how structured stakeholder engagement strengthens ESG strategy, builds trust, and meets regulatory expectations under CSRD and GRI.

ESG Reporting

Storm Surge Protection

Storm surge protection includes engineered barriers, natural buffers, and planning strategies that shield coastal areas from hurricane and cyclone-driven flooding.

Climate Resilience

Stormwater Management

Learn about stormwater management: strategies to control runoff, prevent flooding, protect water quality, and build urban resilience to heavy rainfall events.

Water & Infrastructure

Stranded Assets

Learn what stranded assets are, how climate policy and market shifts can render fossil fuel infrastructure worthless, and the implications for investors.

Carbon & Energy

Supply Chain Due Diligence

Supply chain due diligence is the process of identifying, preventing, and mitigating environmental and human rights risks across a company's value chain.

Supply Chain

Supply Chain Sustainability

Supply chain sustainability embeds environmental, social, and governance practices across sourcing, production, logistics, and end-of-life management.

Supply Chain

Sustainability Accounting

Explore sustainability accounting principles, SASB standards, and how organizations measure and report ESG performance in financial terms.

ESG Reporting

Sustainability Assurance

Sustainability assurance is the independent verification of ESG disclosures, increasingly required by regulators to ensure reliability comparable to financial audits.

ESG Reporting

Sustainability Reporting Software

Compare sustainability reporting software options, key features, and selection criteria for CSRD, GRI, and ISSB compliance.

ESG Reporting

Sustainable Drainage Systems

Sustainable drainage systems (SuDS) manage rainfall close to where it falls, using natural processes to reduce flood risk and improve water quality.

Water & Infrastructure

Sustainable Finance

Discover how sustainable finance integrates ESG criteria into financial decision-making, channeling capital toward a resilient, low-carbon global economy.

Governance

Sustainable Packaging

Sustainable packaging minimizes environmental impact through material selection, design efficiency, recyclability, and end-of-life management across the supply chain.

Supply Chain

Sustainable Procurement

Sustainable procurement integrates environmental, social, and economic criteria into purchasing decisions across an organization's supply chain.

Supply Chain

Sustainable Sourcing

Sustainable sourcing selects suppliers and materials based on environmental impact, social responsibility, and long-term supply security alongside cost and quality.

Supply Chain

W

Waste Hierarchy

Understand the waste hierarchy: a framework prioritizing prevention, reuse, recycling, recovery, and disposal to minimize waste and environmental impact.

Supply Chain

Water Footprint

Understand water footprint: measuring total freshwater used to produce goods and services, including blue, green, and grey water components.

Water & Infrastructure

Water Quality Standards

Water quality standards set enforceable limits on contaminants in drinking water and surface waters to protect public health and aquatic ecosystems.

Water & Infrastructure

Water Reuse and Recycling

Water reuse and recycling treats wastewater for beneficial purposes, reducing freshwater demand and building supply resilience in water-stressed regions.

Water & Infrastructure

Water Scarcity

Learn about water scarcity: when freshwater demand exceeds available supply, affecting 2+ billion people and creating critical risks for business and society.

Water & Infrastructure

Water Stewardship

Explore water stewardship: a collaborative approach to managing shared water resources sustainably across watersheds, balancing stakeholder needs.

Water & Infrastructure

Water Stress

Water stress occurs when demand for freshwater approaches or exceeds available supply, driven by population growth, climate change, and competing uses.

Water & Infrastructure

Water-Energy Nexus

Explore the water-energy nexus: the interdependence between water and energy systems, and why integrated management is critical for sustainability.

Water & Infrastructure

Watershed Management

Watershed management coordinates land and water resource use across drainage basins. Learn planning approaches, nature-based solutions, and governance frameworks.

Biodiversity

Wetland Conservation

Wetland conservation protects marshes, peatlands, and floodplains that deliver critical ecosystem services. Learn why wetlands matter and how to protect them effectively.

Biodiversity

Wildfire Risk Management

Wildfire risk management combines land management, structural hardening, and financial strategies to reduce losses from increasingly severe wildfire seasons.

Climate Resilience