ESG & Sustainability Glossary
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.
B
Biodiversity
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
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.
C
Carbon Credit
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.
Carbon Footprint
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
Carbon neutrality means achieving a state where the net carbon dioxide emissions associated with an entity or activity are zero. This is typically achieved by measuring emissions, reducing them as far as possible, and then compensating for remaining emissions through carbon offsets. Carbon neutrality differs from net zero, which usually requires deeper absolute emission reductions.
Carbon Offset
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 (formerly Carbon Disclosure Project)
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 the most comprehensive source of self-reported corporate environmental data.
Circular Economy
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
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.
G
Green Building
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
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.
L
LEED (Leadership in Energy and Environmental Design)
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
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.
N
Nature-Based Solutions
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
Net zero refers to achieving a balance between the greenhouse gases emitted into the atmosphere and those removed from it. This means reducing emissions as much as possible and offsetting any remaining emissions through carbon removal projects. The goal is to limit global warming to 1.5°C above pre-industrial levels.
S
SBTi (Science Based Targets initiative)
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
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
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
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.
Frequently asked questions
How are glossary terms selected?
Terms are selected based on relevance to ESG professionals, investors, and compliance teams. We cover regulatory frameworks, sustainability concepts, reporting standards, and emerging terminology.
How often is the glossary updated?
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.
Can I suggest a term?
Yes. Contact us with term suggestions and we will consider adding them to the glossary.
Are glossary definitions verified?
Definitions are written by ESG domain experts and cross-referenced with established standards bodies, regulatory frameworks, and industry publications.