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Navigating the >Sustainability< Jungle - A Guide to Understanding Sustainability Terminology

Welcome to the world of sustainability, where business and the environment meet, and acronyms and abbreviations often rule the conversation. In this glossary, we're here to demystify the language of sustainability and break down the jargon. Whether you're a sustainability pro or just starting your journey, this guide will help you navigate through the alphabet soup of terms and initiatives. Let's dive in and make sustainability lingo a breeze to understand!


B-Corp Certification: A certification for businesses that meet high standards of social and environmental performance, transparency, and accountability.


CDP - Carbon Disclosure Project: A global platform for measuring and managing environmental impacts, especially carbon emissions.


CDSB - Climate Disclosure Standards Board: Develops corporate reporting standards for environmental and climate-related information.


COP - Conference of the Parties: The United Nations framework for addressing climate change through international treaties, including the Paris Agreement.


CSR - Corporate Social Responsibility: A commitment by companies to conduct ethical and socially responsible business.


CSRD - Corporate Sustainability Reporting Directive: An EU directive aimed at improving sustainability reporting by European companies.


EBA ESG - European Banking Authority Environmental, Social, and Governance: Focuses on integrating ESG factors into the European banking sector.


EFRAG - European Financial Reporting Advisory Group: Advises the EU on accounting and financial reporting matters.


ESG - Environmental, Social, and Governance: Criteria used to assess a company's sustainability and social responsibility performance.


ESMA - European Securities and Markets Authority: Regulates securities markets, including sustainability and ESG aspects.


ESRS - The European Sustainability Reporting Standards (ESRS) were developed as a response to the Corporate Sustainability Reporting Directive (CSRD) established by the European Commission in April 2021.


EU Green Deal - An ambitious EU initiative for a climate-neutral Europe by 2050.


EUGBS - The EU Green Bond Standard (EUGBS) is a significant initiative introduced by the European Commission in response to the European Green Deal and the need to channel financial resources towards environmentally sustainable investments. EUGBS aims to create a standardized framework for green bonds within the European Union.


GRI - Global Reporting Initiative: Provides global standards for sustainability reporting. GRI played a role in co-developing the new EU sustainability reporting standards ESRS.


IFRS - International Financial Reporting Standards: Global accounting standards for financial transparency and comparability.


ISO 14001 - Environmental Management System (EMS): An international standard for environmental management systems, helping organizations reduce their environmental impact.


ISO 26000 - Social Responsibility: An international standard providing guidance on social responsibility, encouraging ethical behavior and social contributions by organizations.


ISSB - International Sustainability Standards Board: Develops industry-specific sustainability accounting standards.


NFRD - Non-Financial Reporting Directive: Requires large EU companies to disclose non-financial and diversity information and has been replaced by the CSRD.


Renewable Energy Certificates (RECs): Tradable certificates representing the environmental benefits of renewable energy generation, allowing organizations to support renewable energy sources.


SASB - Sustainability Accounting Standards Board: Develops industry-specific sustainability accounting standards.


SDGs - UN Sustainable Development Goals: A set of 17 global goals adopted by the United Nations to address various social, economic, and environmental challenges and promote sustainability.


SFDR - Sustainable Finance Disclosure Regulation: Requires financial institutions to disclose sustainability information.


Sustainability: Sustainability is the practice of meeting current needs without jeopardizing the ability of future generations to meet their own needs, considering environmental, social, and economic factors.


TCFD - Task Force on Climate-related Financial Disclosures: Provides recommendations for disclosing climate-related financial information.


TNFD - Task Force on Nature-related Financial Disclosures: Develops a framework for reporting on nature-related impacts.


UNGC - United Nations Global Compact: A voluntary initiative encouraging businesses and organizations to adopt sustainable and socially responsible policies and practices.


UNPRI - Principles for Responsible Investment: A global network of investors committed to integrating environmental, social, and governance (ESG) factors into their investment decisions.


As we've demystified these jargon-filled terms, remember that this glossary is your cheat sheet. There are, of course, many more abbreviations and terms to uncover, but we hope this has already helped you get a head start in understanding the wordy wilderness of sustainability.

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