Glossary

Independent review of the report (usually “limited”; in some cases “reasonable”).

Reference year/baseline and time-bound goals (short/medium/long term).

Variety of species, ecosystems and genetic diversity; key for ecosystem services.

Offsetting the annual balance of emissions (does not necessarily imply deep reductions).

Carbon Border Adjustment Mechanism: charges embedded emissions in certain imports to prevent carbon leakage.

Disclosure platform for climate, water and forests used by investors and large buyers.

Critical risks to manage among suppliers; zero tolerance and remediation plans.

Maintaining the value of materials and products for as long as possible (reduce, reuse, repair, remanufacture, recycle).

Common unit that converts different GHGs into CO₂ equivalents according to their warming potential.

Principles of corporate conduct and expectations with third parties.

Regulatory and internal compliance; includes anti-corruption, competition and data protection.

Obligations on performance, data and right to audit within the value chain.

Conflict minerals, forest products, intensive agriculture, textiles, electronics, logistics, etc.

Corporate sustainability due diligence regulation (human rights and environment) focused on the value chain and climate plans.

EU Corporate Sustainability Reporting Directive: expands scope and requirements, incorporates double materiality and ESRS, and requires external assurance.

Sustained reduction of absolute and intensity emissions through efficiency, technological change and clean energy.

Policies and practices to ensure equal opportunities and treatment.

Designing products/services for durability, repairability and circular materials from the outset.

A dual perspective; on the one hand, how ESG topics affect the company (financial materiality) and, on the other hand, how the company impacts people and the environment (impact materiality).

Digital record with data on composition, repair and circularity.