CSRD & sustainability glossary

Woordenlijst

Complexe CSRD- en duurzaamheidsterminologie uitgelegd

Indirect GHG emissions

Indirect emissions refer to greenhouse gas (GHG) emissions that result from an entity's activities but occur at sources owned or controlled by another entity. These include both Scope 2 and Scope 3 GHG emissions.

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Installation

A fixed facility where activities that may impact emissions and pollution are conducted.

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Internal carbon price

Price is a tool used to evaluate the financial effects of changes in investment, production, and consumption, as well as potential technological advancements and costs related to reducing emissions in the future.

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Internal carbon pricing scheme

Internal carbon pricing is an arrangement that allows companies to factor in the cost of carbon emissions when making decisions. There are two types: shadow prices, which are theoretical costs used for assessment, and internal taxes or fees, which are charges based on emissions.

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Invasive or alien species

Alien species are introduced outside their natural distribution and can threaten biodiversity, food security, and human health. Invasive species modify ecosystems they are introduced to. A species can be alien without being invasive, and a native species can become invasive without being alien.

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Key Biodiversity Area (KBA)

Global Key Biodiversity Areas (KBAs) are sites that play a crucial role in preserving biodiversity in different ecosystems. These sites are identified based on 11 criteria, including threatened biodiversity, ecological integrity, and irreplaceability. The World Database of KBAs is managed by BirdLife International.

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Land degradation

Biodiversity decline refers to the various factors causing the loss of species, ecosystem functions, and their benefits to humans, including the degradation of all land-based ecosystems.

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Land-system (change)

Land systems refer to the human use of land, including socio-economic, technological, and organizational aspects. It combines land-use activities with land cover characteristics observed from Earth.

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Land-use (change)

Land use refers to how humans utilize a particular area for various purposes, such as housing, farming, or industry. It is different from land cover, but changes in land use can result in changes in land cover.

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Landfill

A landfill is a site where waste is deposited onto or into land for disposal purposes.

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Legitimate representatives

Legitimate individuals, like elected trade union representatives or chosen representatives of affected stakeholders, who are recognized by law or practice and have the authority to represent and advocate for the interests of workers or other affected parties.

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Leverage

The capacity of an action to influence and transform the harmful actions of another party that contribute to negative environmental consequences.

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Lobbying activities

Activities aimed at influencing policy or legislation, including organizing events, participating in consultations, running communication campaigns, and producing research papers. These activities are carried out to influence decision-making processes of governments, regulators, and other institutions.

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Locked-in GHG emissions

Future greenhouse gas emissions estimates for an organization's main assets or products sold during their operational lifespan.

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Longevity

Designed to be long-lasting and easy to maintain, encouraging extended use. It also ensures that at the end of its life, the product can be recycled or reused without harming the environment.

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Marine resources

Marine resources refer to both living and non-living resources found in the oceans, such as minerals, gravels, and seafood products.

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Material opportunities

Sustainability opportunities that have a positive financial impact on a company's cash flow, ability to obtain financing, or cost of capital in the short, medium, or long term.

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Material risks

Sustainability risks are negative financial impacts that can affect a company's cash flow, ability to obtain financing, or cost of capital in the short, medium, or long term.

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Materiality

A sustainability matter is considered material if it has a significant impact on the environment or if it has a significant financial impact, or both.

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Metrics

Metrics are qualitative and quantitative indicators used to measure and report on the effectiveness of sustainability policies and targets. They also help measure the impact on people, the environment, and the undertaking over time.

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Microplastics

Microplastics are small pieces of plastic that do not biodegrade and accumulate in the environment, including the sea. Their presence in water and potential impact on the environment and human health are growing concerns.

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Minimum Disclosure Requirement

A minimum disclosure requirement is the minimum amount of information that a company must include when reporting on its climate policies, actions, metrics, or targets, either through a standardized reporting system or on an individual basis.

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Natural resources

Natural assets are resources found in nature that can be utilized for economic purposes, such as production or consumption.

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Nature-based solutions

Actions that protect, restore, and sustainably manage ecosystems to address social, economic, and environmental challenges, while also providing benefits to human well-being, resilience, and biodiversity.

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Net Zero Emissions

Net zero emissions refers to the state in which the greenhouse gas (GHG) emissions produced by human activities are balanced by removing an equivalent amount of GHGs from the atmosphere.

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Net-zero target

Setting a net-zero target means reducing emissions in line with global goals and offsetting any remaining emissions by removing an equivalent amount of CO2 from the atmosphere. Sectoral variations may be allowed, but overall reductions must align with a recognized pathway.

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Non-employees

Non-employees in a company's workforce refer to both self-employed contractors and individuals provided by employment agencies (NACE Code N78).

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Non-renewable energy

Non-renewable energy refers to energy sources that cannot be classified as coming from renewable sources.

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Operational control

Operational control refers to the authority of an organization to manage and oversee the activities and relationships of a specific entity, site, operation, or asset.

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Opportunities

Sustainability opportunities that have a positive impact on finances.

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Overtime

Overtime refers to the additional hours worked by an employee beyond their agreed-upon work schedule.

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Own workforce/own workers

Employees are individuals in a work relationship with a company. Non-employees can be independent contractors or individuals provided by companies engaged in employment activities.

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Ozone-depleting substances

The Montreal Protocol lists substances that harm the ozone layer.

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Packaging

Packaging refers to any materials used to contain, protect, handle, deliver, store, transport, and present goods, from raw materials to processed goods, throughout the supply chain.

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Pay

The total amount of money and benefits that a worker receives from their employer, including any additional or variable components. Pay level refers to the yearly and hourly pay, while median pay level is the amount that half of employees earn more than and half earn less than.

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Persons with disabilities

Individuals with disabilities who face obstacles that prevent them from fully participating in society on an equal level with others due to their impairments and various barriers.

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Physical risks

Nature-related physical risks are the result of an organization's reliance on natural systems and ecosystem services. These risks occur when natural systems are compromised, leading to changes in ecosystem conditions that organizations depend on. They are often associated with climate-related risks.

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Planetary boundaries

The concept of a safe operating space for humanity estimates the limits of Earth's processes that should not be exceeded to prevent harmful global environmental changes. These boundaries are quantified to guide sustainable actions.

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Policy

A policy is a set of objectives and principles that guide decision-making in an organization. It is implemented to address sustainability issues and is overseen by specific individuals. Policies are validated and reviewed according to governance rules and are carried out through action plans.

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Pollutant

Pollutant: A harmful substance, such as heat, noise, or chemicals, found in air, water, or soil that can negatively impact human health, the environment, property, or the enjoyment of the environment.

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Pollution

Pollution refers to the introduction of harmful substances into the air, water, or soil due to human activities. It can have negative effects on human health, the environment, property, and the overall enjoyment of the environment.

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Pollution of soil

Soil pollution refers to the introduction of harmful substances, vibrations, heat, or noise into the soil through human activities. This can cause damage to human health, the environment, property, and interfere with the use of the environment. Soil pollutants include inorganic and organic compounds, pesticides, and nitrogen and phosphorus compounds.

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Protected area

A designated area, legally protected, managed, and aimed at preserving nature, ecosystem services, and cultural values for the future.

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Purchased or acquired electricity, heat, steam, or cooling

"Acquired energy refers to when a company receives its electricity, heat, steam, or cooling from a third party. This can occur when a company, such as a tenant, does not directly purchase electricity but uses energy brought into their facility."

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Raw material

Raw or processed material used in the manufacturing of goods.

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Recognised quality standards for carbon credits

Quality standards for carbon credits ensure that they can be verified by independent third parties, have publicly available requirements and project reports, and meet criteria such as additionality, permanence, avoidance of double counting, and rules for calculating, monitoring, and verifying GHG emissions and removals.

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Recordable work-related injury or ill health

Work-related injury or ill health that causes death, time off work, restricted work, medical treatment, or loss of consciousness. Also includes significant injury or ill health diagnosed by a healthcare professional, even if it doesn't result in the above.

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Recovery

Waste-to-energy refers to any process that converts waste into a useful resource, either by replacing other materials or by preparing waste to fulfill a specific function, either within a facility or in the broader economy.

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Recycling

Waste recovery is the process of reprocessing waste materials into new products or substances. It does not include energy recovery or the reprocessing of materials for fuel or backfilling purposes.

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Remedy/remediation

Remediation refers to actions taken to offset or rectify the adverse effects caused by certain activities. This can include apologies, compensation, prevention measures, punitive measures, restitution, restoration, and rehabilitation.

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Renewable energy

Renewable energy sources include wind, solar, geothermal, ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas. These sources do not rely on fossil fuels and are sustainable for the environment.

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Renewable materials

Renewable materials are derived from quickly replenished resources, ensuring that the services they provide, along with other linked resources, are not endangered and can be accessed by future generations.

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Resource inflows

Input material used in a company's operations or processes.

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Resource outflows

Resource leaving the facilities of a project or organization.

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Resource regeneration

Enhancing the ability of natural systems to regenerate themselves and restore ecological processes that have been harmed or depleted by human activities.

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Resource use optimisation

Circular economy is a strategy that focuses on designing, producing, and distributing materials and products to maximize their use and value. It includes eco-design and tools like repair, reuse, and remanufacturing to optimize resource utilization.

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Reuse

Reuse is the process of using products and components again for their original purpose without major modifications, often involving cleaning or minor adjustments.

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Risks

Sustainability risks refer to negative financial impacts caused by environmental, social, or governance issues that can harm a company's financial position, performance, cash flow, access to finance, or cost of capital in the short, medium, or long term.

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River basin

Catchment: Land area where all surface run-off flows through streams, rivers, and possibly lakes, into the sea at a river mouth, estuary, or delta.

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SFDR

The Sustainable Finance Disclosure Regulation (SFDR) is a regulatory framework introduced by the European Union (EU) to promote sustainable finance and improve transparency in the financial industry.

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Scenario

Scenarios are hypothetical descriptions of the future based on assumptions about key factors. They are not predictions, but are used to understand the potential consequences of different developments and actions.

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Scenario analysis

Scenario analysis is a method used to evaluate various possible outcomes of future events in uncertain conditions.

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Scope 1 GHG emissions

Direct greenhouse gas (GHG) emissions come from sources that are owned or controlled by a company or organization. These emissions contribute to climate change.

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Scope 2 GHG emissions

Indirect emissions refer to the greenhouse gas emissions produced from the use of purchased electricity, steam, heat, or cooling by a company or organization.

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Scope 3 GHG emissions

Scope 3 GHG emissions are all indirect emissions in a company's value chain, not included in scope 2. They include both upstream and downstream emissions and can be categorized further.

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Scope 3 category

Scope 3 GHG emissions are one of the 15 types of emissions identified by the GHG Protocol. They can be accounted for using ISO 14064-1:2018, excluding indirect GHG emissions from imported energy.

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Sensitive information

Sensitive information refers to data that is protected under Regulation (EU) 2021/697 of the European Parliament and of the Council, which establishes the European Defence Fund.

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Site

Site refers to the location of one or more physical installations, which may be owned or operated by different entities. If shared infrastructure and facilities are present, the entire area where the installations are located can be considered a site.

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Social dialogue

Dialogue refers to negotiations, consultations, or information exchange between government representatives, employers, workers' representatives, and their organizations. It can be tripartite, involving the government, or bipartite, involving only workers' representatives and management or trade unions and employers' organizations.

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Social protection

A collection of actions aimed at lessening and averting poverty and vulnerability throughout all stages of life.

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Soil

Soil is the upper layer of the Earth's crust, containing minerals, organic matter, water, air, and living organisms. It lies between the bedrock and the surface.

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Soil degradation

Soil degradation refers to the decline in the ability of soil to meet the needs of its users by providing essential resources and functions.

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Soil sealing

Soil sealing refers to covering soil in a manner that prevents water from penetrating it, such as with a road. This can have negative environmental effects, as outlined in EU Regulation (EU) 2018/2026.

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Specific loads

Specific load is the mass of pollutant released per mass of product manufactured. It helps compare environmental performance of installations regardless of production volumes, unaffected by mixing or dilution.

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Stakeholder engagement

Stakeholder engagement is a continuous process where the undertaking actively listens, comprehends, and addresses the interests and concerns of those involved, promoting effective communication and collaboration.

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Stakeholders

Stakeholders are individuals or groups who can be affected by or affect a project. There are two main groups: affected stakeholders and users of sustainability statements, including investors, creditors, business partners, and civil society. Some stakeholders may belong to both groups.

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Substances

Chemical elements and their compounds, excluding radioactive substances, genetically modified micro-organisms, and genetically modified organisms released into the environment.

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Substances of Very High Concern (SVHCs)

Chemicals that meet specific requirements outlined in the REACH regulation and have been identified as such.

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Substances of concern

A substance that meets certain criteria and is classified as hazardous in various ways, including being carcinogenic, mutagenic, toxic to the environment, or harmful to human health. It may also negatively impact material re-use and recycling.

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Supplier

A supplier is a company that provides products or services to an organization, either directly or indirectly through the organization's supply chain, for the development of its own products or services.

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Supply chain

Upstream activities refer to the processes and activities conducted by entities that supply products or services to a company. This includes both direct and indirect relationships with suppliers.

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Surface water

Inland waters, transitional waters, and coastal waters are included in the definition, except for groundwater. However, when considering chemical status, territorial waters are also included.

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Sustainability matters

ESG factors, which include sustainability factors as defined in EU Regulation 2019/2088, encompass environmental, social, human rights, and governance considerations.

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Sustainability statement

This section of the management report presents information on sustainability matters, following the guidelines of Directive 2013/34/EU and the ESRS.

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Sustainability-related impacts

The impact of an activity or business on the environment and people, including their human rights. It can be positive or negative, short or long-term, intended or unintended, and reversible or irreversible, and shows the contribution to sustainable development.

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Sustainability-related opportunities

Sustainability-related opportunities refer to uncertain events or conditions that could have a positive impact on a company's business model, strategy, goals, and value creation. These opportunities are assessed based on their potential impact and likelihood of occurring.

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Sustainability-related risks

Sustainability-related risks refer to uncertain events or conditions that could negatively impact a company's business model, strategy, goals, and ability to create value. These risks influence decision-making and business relationships, and are determined by the magnitude and probability of their impact.

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Systemic risks

Systemic risks are failures of the entire system, not just individual parts. They occur when small tipping points combine to cause large failures, with cascading effects and the inability to recover after a shock. An example is the loss of keystone species like sea otters, which disrupts ecosystem structure and reduces biomass production.

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TCFD

The Task Force on Climate-related Financial Disclosures (TCFD) is an initiative established by the Financial Stability Board (FSB) in 2015.

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TNFD

The TNFD is an emerging initiative that aims to develop a framework similar to the Task Force on Climate-related Financial Disclosures (TCFD), but specifically focused on nature-related risks and opportunities.

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Targets

Targets are specific, time-limited goals that a company or organization sets to address material impacts, risks, or opportunities. They can be voluntary or legally required.

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The Global Reporting Initiative

The Global Reporting Initiative is an independent international organization that has developed a widely used framework for sustainability reporting.

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Threatened species

Species at risk of extinction, both plants and animals, that are included in the European Red List or the IUCN Red List, as mentioned in Section 7 of Annex II to Commission Delegated Regulation (EU) 2021/2139.

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Training

Efforts implemented by an organization to enhance the abilities and knowledge of its employees, which may involve various approaches like in-person and virtual training.

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Transition plan

A targeted plan adopted by a company to achieve a public policy goal or address specific actions related to a strategic decision, business model change, or important actions and resources allocation.

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Transition plan for climate change mitigation

Transition plan: A strategic framework that outlines an organization's goals, actions, and resources for moving towards a low-carbon economy. It includes measures like reducing greenhouse gas emissions to limit global warming to 1.5°C and achieving climate neutrality.

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Transition risks

Transition risks refer to the potential dangers faced by organizations or investors when their strategies and management do not align with the evolving regulatory, policy, or societal landscape. These risks can arise from various factors, including government actions, technological advancements, market shifts, legal disputes, and shifting consumer preferences, all aimed at addressing climate and environmental concerns.

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Users

Primary users of sustainability statements include investors, lenders, creditors, asset managers, insurance companies, business partners, trade unions, civil society organizations, governments, analysts, and academics.

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Value chain

A value chain refers to all the activities, resources, and relationships involved in a business's operations and external environment. This includes everything from production to distribution and the various actors involved, such as suppliers and customers.

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Value chain worker

Workers in the value chain of a company, including those impacted by the company's operations, products, and business relationships. This does not include employees or self-employed individuals, but encompasses all other workers in the value chain.

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