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
B Corp Certification
B Corp Certification is awarded by the non-profit B Lab to companies that meet rigorous standards of social and environmental performance, accountability, and transparency. The certification process involves a comprehensive assessment (the B Impact Assessment) covering governance, workers, community, environment, and customers. B Corps are legally required to consider the impact of their decisions on all stakeholders.
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
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.
CSRD (Corporate Sustainability Reporting Directive)
The Corporate Sustainability Reporting Directive (CSRD) is EU legislation that significantly expands mandatory sustainability reporting requirements for companies operating in Europe. It introduces the European Sustainability Reporting Standards (ESRS) and requires double materiality assessments, third-party assurance, and digital tagging of reports. The CSRD applies to approximately 50,000 companies, including non-EU companies with significant EU operations.
E
EcoVadis
EcoVadis is a business sustainability ratings platform that assesses companies across four themes: environment, labour and human rights, ethics, and sustainable procurement. Using a combination of documentation review, industry benchmarking, and third-party data, EcoVadis provides a scorecard from 0 to 100 with medal levels. Over 130,000 companies across 175 countries have been rated.
ESG Rating
An ESG rating is an assessment of a company's exposure to and management of environmental, social, and governance risks and opportunities. Provided by agencies such as MSCI, Sustainalytics, and S&P Global, ESG ratings aggregate data from corporate disclosures, news sources, and stakeholder reports. Ratings are used by investors to screen, compare, and evaluate companies on sustainability performance.
EU Taxonomy
The EU Taxonomy is a classification system establishing a list of environmentally sustainable economic activities based on science-based technical screening criteria. It provides a common language for investors, companies, and policymakers to determine which activities can be considered genuinely sustainable. Activities must substantially contribute to at least one of six environmental objectives without significantly harming the others.
I
ISO 14001
ISO 14001 is an internationally recognised standard for environmental management systems (EMS) published by the International Organization for Standardization. It provides a framework for organisations to systematically manage their environmental responsibilities, reduce waste, and improve resource efficiency. Certification requires third-party auditing and ongoing compliance.
ISSB (International Sustainability Standards Board)
The International Sustainability Standards Board (ISSB) was established by the IFRS Foundation to develop a global baseline of sustainability disclosure standards for the capital markets. Its inaugural standards, IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures), consolidate and build upon TCFD, SASB, and other frameworks. The ISSB aims to create consistency and comparability in sustainability reporting worldwide.
S
SASB (Sustainability Accounting Standards Board)
SASB provides industry-specific sustainability disclosure standards designed to help companies communicate financially material sustainability information to investors. Now part of the IFRS Foundation, SASB standards cover 77 industries across five dimensions: environment, social capital, human capital, business model, and leadership. They focus on the subset of ESG issues most likely to affect financial performance.
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.
SDGs (Sustainable Development Goals)
The Sustainable Development Goals are 17 interconnected global goals adopted by all UN Member States in 2015 as a shared blueprint for peace and prosperity for people and the planet by 2030. They address challenges including poverty, inequality, climate change, environmental degradation, and injustice. Organisations increasingly map their ESG strategies and impacts to specific SDGs.
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.