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Clear, authoritative definitions of 50+ ESG and sustainability terms – from CSRD and double materiality to net zero and scope 3 emissions.
The Citable ESG Orgs. glossary provides concise, expert definitions of the most important terms in environmental, social, and governance (ESG) practice. Whether you are navigating CSRD compliance requirements, understanding the difference between carbon neutrality and net zero, or learning about emerging frameworks like TNFD and ISSB – this glossary is your reference. Each term includes context on why it matters, related concepts, and links to relevant organisations in our directory. For deeper learning, explore our ESG guides.
Biodiversity refers to the variety of life on Earth at all levels, from genes to ecosystems, and the ecological processes that sustain them. It encompasses the diversity within species, between species, and of ecosystems. Loss of biodiversity threatens ecosystem services that human societies depend on, including food production, clean water, and climate regulation.
BREEAM (Building Research Establishment Environmental Assessment Method) is the world's first and one of the most widely used sustainability assessment methods for buildings and infrastructure projects. Developed in the UK, it evaluates performance across categories including energy, health, materials, waste, ecology, and management. BREEAM ratings range from Pass to Outstanding.
A carbon credit is a tradeable certificate representing the right to emit one metric tonne of carbon dioxide or its equivalent in other greenhouse gases. Credits are generated through verified emission reduction or removal projects and can be traded on voluntary or compliance carbon markets. They serve as a market-based mechanism for incentivising emissions reduction.
A carbon footprint is the total amount of greenhouse gas emissions caused directly and indirectly by an individual, organisation, event, or product. It is usually expressed in tonnes of carbon dioxide equivalent (tCO2e). The measurement encompasses emissions across an entity's entire value chain.
Carbon neutrality is a state in which the net carbon dioxide emissions linked to an entity or activity equal zero. It is reached by measuring emissions, reducing them as far as possible, and compensating for the remainder through carbon offsets. Carbon neutrality differs from net zero, which usually requires deeper absolute emission reductions.
A carbon offset is a reduction or removal of greenhouse gas emissions made to compensate for emissions occurring elsewhere. Offsets are typically measured in metric tonnes of CO2 equivalent and can be generated through projects such as reforestation, renewable energy, or methane capture. They are purchased as credits on voluntary or compliance carbon markets.
CDP is a global non-profit that runs the world's leading environmental disclosure system for companies, cities, states, and regions. Through annual questionnaires, CDP collects and scores data on climate change, water security, and forests. Over 23,000 companies disclose through CDP, making it one of the largest sources of self-reported corporate environmental data.
A circular economy is an economic model that aims to eliminate waste and the continual use of resources through designing for durability, reuse, remanufacturing, and recycling. It contrasts with the traditional linear model of take-make-dispose. The goal is to keep products, materials, and resources in use for as long as possible.
Climate risk refers to the potential negative impacts of climate change on organisations, economies, and ecosystems. It is typically divided into physical risks (extreme weather, sea-level rise) and transition risks (policy changes, technology shifts, market repricing). Understanding climate risk is essential for long-term strategic planning and investment decisions.
Green building refers to the practice of designing, constructing, and operating buildings in a way that reduces their environmental impact and enhances occupant health. This includes energy efficiency, water conservation, sustainable materials, and indoor air quality. Green building certifications like LEED and BREEAM provide standardised benchmarks.
Greenwashing is the practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or company practice. It can range from vague or irrelevant green claims to outright fabrication of environmental credentials. Greenwashing undermines consumer trust and diverts resources from genuinely sustainable alternatives.
LEED is a globally recognised green building certification system developed by the US Green Building Council. It provides a framework for healthy, efficient, and cost-saving buildings across several categories including new construction, interiors, and operations. Projects earn points across categories such as energy, water, materials, and indoor environmental quality to achieve certification levels from Certified to Platinum.
Life Cycle Assessment (LCA) is a systematic methodology for evaluating the environmental impacts of a product, process, or service throughout its entire life cycle. This includes raw material extraction, manufacturing, distribution, use, and end-of-life disposal or recycling. LCA helps identify the most significant environmental hotspots and improvement opportunities.
Nature-based solutions are actions that protect, sustainably manage, or restore natural ecosystems to address societal challenges such as climate change, biodiversity loss, and disaster risk. Examples include reforestation, wetland restoration, and sustainable agriculture. They provide co-benefits for both people and biodiversity.
Net zero is a state in which the greenhouse gases an organisation adds to the atmosphere are balanced by an equal amount removed from it. Reaching net zero means cutting emissions as deeply as possible, then removing any residual emissions through carbon removal projects. The aim is to limit global warming to 1.5°C above pre-industrial levels.
The Science Based Targets initiative (SBTi) provides companies with a clearly defined pathway to reduce greenhouse gas emissions in line with the goals of the Paris Agreement. It validates corporate emission reduction targets against climate science to ensure they are ambitious enough. SBTi targets cover Scope 1, 2, and increasingly Scope 3 emissions, with a net-zero standard for long-term decarbonisation.
Scope 1 emissions are direct greenhouse gas emissions from sources owned or controlled by an organisation. These include emissions from on-site fuel combustion, company vehicles, and industrial processes. They are the most straightforward emissions for a company to measure and reduce.
Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting organisation. They occur at the facility where the energy is generated, not where it is consumed. Companies can reduce Scope 2 emissions by switching to renewable energy sources.
Scope 3 emissions are all indirect greenhouse gas emissions that occur in a company's value chain, both upstream and downstream. They include emissions from purchased goods, business travel, employee commuting, waste disposal, and use of sold products. For most companies, Scope 3 represents the largest share of their total emissions.
Scope 3 Supplier Readiness measures how prepared an organisation is to provide structured, verifiable ESG data for supply chain emissions reporting. It assesses whether the organisation has disclosed emissions data, obtained third-party assurance, set science-based targets, holds verified certifications, and maintains a machine-readable profile that procurement systems can ingest automatically.
Terms are selected based on relevance to ESG professionals, investors, and compliance teams. We cover regulatory frameworks, sustainability concepts, reporting standards, and emerging terminology.
The glossary is regularly expanded with new terms as the ESG landscape evolves. We aim to cover 100+ terms across environmental, social, governance, frameworks, and finance categories.
Yes. Contact us with term suggestions and we will consider adding them to the glossary.
Definitions are written by ESG domain experts and cross-referenced with established standards bodies, regulatory frameworks, and industry publications.