The ESG glossary, in plain English

The underlying data on activities that generate emissions, such as energy use, travel, or purchases.

An independent check of reported sustainability information, increasingly required alongside financial audit.

A record that links each reported figure back to its source, method, and owner.

India's Business Responsibility and Sustainability Report, set by SEBI for large listed companies.

The EU Carbon Border Adjustment Mechanism, which prices the emissions embedded in certain imported goods.

A global environmental disclosure system where companies respond to an annual questionnaire.

The EU Corporate Sustainability Reporting Directive, which sets sustainability reporting requirements for in-scope companies.

Reporting both how sustainability issues affect the business and how the business affects people and the environment.

The greenhouse gases released during the production of a good, carried with it through the supply chain.

A value used to convert activity data, such as litres of fuel, into emissions.

The European Sustainability Reporting Standards used to report under the CSRD.

The most widely used standard for corporate greenhouse gas accounting, grouping emissions into three scopes.

Emissions expressed per unit of activity, such as per £m of turnover, to make figures comparable over time.

The International Sustainability Standards Board, which issues the IFRS S1 and S2 disclosure standards.

Life cycle assessment: modelling a product's environmental impact from raw materials to end of life.

A way of deciding which topics are significant enough to report on.

Data collected directly from the source, such as a supplier's own measured emissions, rather than an estimate.

The Science Based Targets initiative, which sets criteria for emissions targets aligned with climate science.

Direct emissions from sources a company owns or controls, such as company vehicles and on-site fuel combustion.

Indirect emissions from purchased energy, such as electricity, steam, heating, and cooling.

All other indirect emissions across the value chain, split into 15 categories. Usually the largest and hardest to measure.

UK Streamlined Energy and Carbon Reporting requirements for qualifying organisations.

Emissions associated with a company's suppliers, an important part of Scope 3.

Tonnes of carbon dioxide equivalent, the standard unit for expressing greenhouse gas emissions.

UK Sustainability Reporting Standards, based on the ISSB's IFRS S1 and S2.

The year an emission factor represents, important because factors change as grids and methods evolve.