CSR Glossary: Corporate Sustainability – the Most Important Terms

Corporate sustainability goes hand in hand with many terms and just as many abbreviations. This article summarises the most important terms for sustainability management.

---

How exactly do you define CSR? What again is CR? And what does ESRS actually mean? Sustainable business is hip and yes, much of it is more than greenwashing. More and more terms and abbreviations for standards, economic models and initiatives are emerging. Can anyone still make sense of it all? This article explains – in alphabetical order – the terminology surrounding sustainability in business:

CSR Glossary Corporate Sustainability

Authors: Isabella Samani & Tina Teucher

Contents – Terms in this CSR Glossary

C2C = Cradle to Cradle

What is C2C?

Cradle to Cradle is a design concept for a consistently circular economy. Companies can have their products certified according to this concept. C2C was coined by Prof Michael Braungart, founder of the EPEA Institute.

The 3 Cradle to Cradle Principles:

• Waste = Food
  Product and consumption cycles should correspond with natural cycles. For example, all product materials should be available for production after use and recycling.
• Utilisation of Renewable Energies
  All the energy used in the life cycle of a product should be renewable.
• Respecting Diversity
  The solutions designed by C2C are intended to promote biological, socio-cultural and conceptual diversity.

CBAM = Carbon Border Adjustment Mechanism

What does CBAM stand for?

The Carbon Border Adjustment Mechanism is a programme introduced by the EU in October 2023 to reduce carbon leakage, i.e. the relocation of emission-intensive production processes of European companies to non-EU countries in order to circumvent the stricter EU regulations. The replacement of EU products with cheaper, more emission-intensive products from outside the EU is also referred to as carbon leakage. The CBAM will therefore now intervene by checking what price a company has already paid for the greenhouse gas emissions emitted by an imported product. If the price paid is lower than in the EU, the company must purchase CBAM certificates.

CC = Corporate Citizenship

What is the difference between CSR and CC?

What many consider to be CSR is actually only part of it, namely corporate citizenship (CC). The term CC refers to social commitment by companies such as donations, sponsorship or the provision of labour by employees outside their usual working environment for charitable purposes.

CCC = Climate Change Committee

What does CCC stand for?

The Climate Change Committee is an advisory body to the UK government established in 2008. It advises the government on emissions targets and reports to Parliament on progress in reducing greenhouse gas emissions and on climate change adaptation.

CCF = Corporate Carbon Footprint

What does CCF mean?

The corporate carbon footprint represents all climate-impacting emissions that a company produces through all its actions and products within a year. This is to be distinguished from the product carbon footprint.

CCS = Carbon Capture and Storage

What is CCS?

The term CCS refers to the underground storage of carbon dioxide beneath the earth’s surface or the seabed to eliminate the greenhouse gas from the atmosphere. Research and pilot projects are currently (June 2024) being conducted to clarify whether the technology can be considered as a climate protection measure.

CCU = Carbon Capture and Utilisation

What does CCU mean?

Unlike CCS, CCU not only stores the fixed carbon, but – as the name suggests – also utilises it. Carbon capture and utilisation (CCU) usually refers to the use of gaseous CO2, e.g. in fire extinguishing systems. CCU can also be used as ‘power to gas/liquid/solid’. Here, the carbon compounds CO2 and CO (carbon monoxide) are used for the production of chemicals and as an energy source for transport, industry and heat supply. According to the German Federal Environment Agency (Umweltbundesamt, UBA), CCU is not a viable climate protection measure.

CDM = Clean Development Mechanism

What does CDM stand for?

The Clean Development Mechanism originates from the Kyoto Protocol. It stipulates that countries that have committed to reducing emissions in accordance with the Kyoto Protocol can implement emission reduction projects in less developed countries that count towards achieving the Protocol’s targets. The emissions certificates acquired in this way are available for emissions trading.

CDP = Carbon Disclosure Project

What is the idea behind the CDP?

The Carbon Disclosure Project is an international organisation that collects environmental data such as data on emissions and supports companies and local authorities in sustainability reporting. Data is collected annually via questionnaires that the institutions complete themselves. The NGO aims to encourage companies and authorities to save resources and emissions in their sphere of influence.

CDSB = Climate Disclosure Standards Board

What is the CDSB?

The Climate Disclosure Standards Board (CDSB) was an international association of NGOs from the business and environmental sectors. The aim of the CDSB was to put natural and social capital on an equal footing with financial capital in corporate reporting and to improve and harmonise reporting. In 2022, as planned, the CDSB merged with the IFRS Foundation to provide staff and resources to the ISSB.

CE = Circular Economy

What does CE stand for?

Circular Economy (CE) is a way of doing business that conserves natural resources, e.g. by making products repairable and recyclable with the longest possible product lifespan. The German Federal Environment Agency (Umweltbundesamt) defines the CE as ‘part of a resource-efficient, sustainable way of life and economy that promotes the implementation of the United Nations 2030 Agenda for Sustainable Development and respects planetary boundaries.’

The circular economy considers the entire life cycle of a product and the materials used (locally and globally). Ecological and social consequences are also part of the considerations.

In German-speaking countries, the term ‘Kreislaufwirtschaft’ (German translation for CE) is sometimes only used to refer to sustainable waste management. In contrast, the English term circular economy is usually understood more comprehensively and describes the entire material cycle of a product.

CG = Corporate Governance

What does CG mean?

Corporate governance stands for transparent and responsible corporate management. The German Corporate Governance Code deals with the ‘management and supervision of German listed companies’. Corporate governance is intended to create transparency about business transactions and increase comparability with other companies in reports. CG is part of corporate responsibility (CR).

CO2e = Carbon dioxide equivalents = CO2 equivalents

What does CO2e mean?

The e in CO2e stands for ‘equivalents’. The CO2 equivalents were introduced in order to better calculate the effects of all climate-changing greenhouse gases. For example, methane has around 28 times more impact on the climate than CO2 and can therefore have a greater influence on climate change than CO2, even in small quantities. In addition to CO2 and methane, greenhouse gases also include water vapour and nitrous oxide, for example. Because the CO2e facilitates the calculation of impacts, they are usually used in the LCA, the PCF and the ERA, for example.

CR = Corporate Responsibility

Are CSR and CR the same thing?

CR and CSR are often used interchangeably, as both deal with corporate responsibility. However, there is also another type of definition. Corporate responsibility (CR) is an umbrella term that encompasses the following concepts:

• Corporate Social Responsibility (CSR)
• Corporate Governance (CG)
• Corporate Citizenship (CC)

CS = Corporate Sustainability

What does CS stand for?

Corporate sustainability is a broad term that can be defined in very different ways. In some cases, CS is equated with CSR. The Lexicon of Sustainability (Lexikon der Nachhaltigkeit) published by the foundation Aachener Stiftung Kathy Beys distinguishes between CSR and CS as follows:

“Corporate Social Responsibility explicitly addresses the social and ecological dimensions and considers economic efficiency as a marginal or secondary condition.
Corporate sustainability (CS), on the other hand, understands all three dimensions [note: the three dimensions of sustainability are social, ecological and economic] as an integrated unit: all products and services serve a sustainable economy and way of life. Such companies are still rare.”

CSDDD = Corporate Sustainability Due Diligence Directive

What is the difference between CSDDD and RBC?

The European Commission’s Corporate Sustainability Due Diligence Directive (CSDDD) is intended to create a legal framework in which companies must disclose the measures they take to protect the environment and human rights. The CSDDD came into force in July 2024. The OECD’s Responsible Business Conduct (RBC) can also be used as a guide.

CSR = Corporate Social Responsibility

Is CSR only concerned with the social aspect of corporate sustainability?

Do companies assume social responsibility? Originally focussing primarily on social aspects, CSR now stands for holistic, sustainable management, which is why it is also referred to as corporate responsibility (CR). CSR is therefore based on the three pillars of sustainability: ecology, economy and social responsibility. CSR practice is characterised by fairness in dealing with all stakeholders (supply chain, employees, customers, local residents, etc.), comprehensive environmental protection measures and social commitment.

CSRD = Corporate Social Responsibility Directive

What is CSRD?

CSRD is the EU directive on corporate sustainability reporting. Since 2014, sustainability reporting has already been regulated for certain companies by the NFRD. Since the beginning of 2023, the CSRD has been regulating mandatory reporting on corporate sustainability for many more companies. The directive will gradually affect more companies every year until 2026.

The CSRD standardises the form of sustainability reports and also specifies the use of certain key figures in order to make the reports of different companies comparable. However, it obliges companies not only to present the effects of their actions, but also to address the effects of sustainability aspects on the company. Reporting must be based on the ESRS.

DAC = Direct Air Capture

What does DAC stand for?

DAC is a measure to reduce CO2 in the air in order to reduce the amount of greenhouse gases in the atmosphere. The gas can be “sucked” directly out of the air through a chemical reaction, stored and utilised as a raw material. DAC is still at the development stage and the process requires a lot of energy. However, it is likely that the technology might be used on a larger scale in the future.

ECGT = EU Directive on Empowering Consumers for the Green Transition

What is the difference between ECGT and GCD?

The ECGT is a EU directive that was introduced as a result of the European Green Deal. It deals with the following issues:

• Advertising Claims: If a product advertises ecological aspects, the company must be able to substantiate the claims (scientifically).
• Social Sustainability: In addition to the ecological aspects of a product, the directive now also includes social factors such as compliance with human rights and working conditions within the company as criteria for sustainability.
• Prohibition of Vague Statements: The directive prohibits misleading and unspecific statements and quality seals that are not independently certified.
• Advertising for CO2 Reduction: The directive recognises that actual CO2 reduction is more valuable than climate neutrality through offsetting measures. Advertising is to be subject to stricter controls in this respect.
• Product Lifespan: Companies must provide more comprehensive information on durability and repairability as a standard – this also includes information on software updates.

The directive is expected to be integrated into national legislation in Germany from the beginning of 2026. The ECGT is going to be supplemented by the GCD (= Green Claims Directive). The ECGT focuses on consumer protection, while the GCD sets out the requirements that environmental claims must fulfil.

EFRAG = European Financial Reporting Advisory Group

What is EFRAG?

EFRAG is an association of European stakeholders, national organisations and civil society organisations founded with the support of the European Commission. It plays a major role in the further development of the CSRD and has two main tasks:

1. Financial Reporting: Influencing the development of IFRS standards (e.g. SASB standards) from a European perspective and their contribution to the efficiency of the capital markets as well as advising the European Commission on the adoption of IFRS standards (and their amendments).
2. Sustainability Reporting: Development of drafts for EU standards on sustainability reporting and corresponding amendments for the European Commission.

EMAS = Eco-Management and Audit Scheme

What does EMAS stand for?

EMAS is a voluntary and comprehensive environmental management system of the European Union. If a company has fully implemented EMAS, it fulfils all the requirements of the ‘DIN EN ISO 14001’ standard. When implementing EMAS, companies systematically record all the effects of their business activities on the environment, make specific adjustments to improve their environmental performance and regularly report on the status quo and planned measures.

ERA = Environmental Risk Assessment

What does ERA mean in terms of corporate sustainability?

The Environmental Risk Assessment (ERA) examines the effects on the environment of e.g. genetically modified plants, pesticides (plant protection products) or food and animal feed.

ESG = Environment, Social & Governance

What is ESG?

ESG refers to a set of rules with so-called ESG criteria for assessing a financial product or company in terms of sustainability. The abbreviation ESG stands for

• Environment
• Social, see CSR
• Governance = supervisory structures / corporate governance, s. CG

ESRS = European Sustainability Reporting Standards

What is the difference between ESRS and CSRD?

The CSRD is the overarching directive that states that certain companies must publish reports on corporate sustainability. The ESRS (European Sustainability Reporting Standards) regulate what these reports must look like, i.e. what they should contain. The ESRS came into force on 1 January 2024.

EU Green Deal = The European Green Deal

What is the EU Green Deal?

The European Green Deal (EU Green Deal) aims to make Europe the first climate-neutral continent by 2050. It includes the EU Supply Chain Act, the Circular Economy Action Plan and measures to promote sustainable finance. The EU Commission fleshed out the Green Deal in 2021 with the ‘Fit for 55’ package of measures, which aims to reduce net greenhouse gas emissions by 55% by 2030 compared to 1990 levels.

EU Taxonomy

What is the EU Taxonomy?

The EU Taxonomy uses a points system to categorise economic activities according to how sustainable they are, with the aim of encouraging investors to invest more in sustainable companies. Positive ratings are given to measures relating to:

• Climate protection
• Adaptation to climate change
• Sustainable use and utilisation of water or marine resources
• Transition to a circular economy
• Prevention or control of environmental pollution
• Protection and restoration of biodiversity and ecosystems

At the same time, a company must not harm the environment, in order for example to achieve one of the goals, a company must not violate one of the other goals („do no significant harm“).

GCD = EU Green Claims Directive

Are GCD and ECGT the same thing?

The Green Claims Directive is an EU directive in preparation (as of May 2024) and is intended to prevent greenwashing, that is, misleading claims about the environmental friendliness or sustainability of products or services. The GCD is part of the EU’s circular economy strategy. Planned measures of the GCD include, among others

• clear criteria for how companies must demonstrate their environmental claims and labelling,
• the requirement that this information and labelling must be verified by an independent and accredited assessor, and
• new rules for the management of eco-labelling schemes to ensure that they are sound, transparent and reliable.

The ECGT (= EU Directive on Empowering Consumers for the Green Transition) is related to the GCD, but focuses less on criteria for claims and more on consumer protection in relation to misleading claims.

GHG = Greenhouse Gas

What does GHG mean?

Greenhouse gases (GHG) are gases that retain heat in the Earth’s atmosphere. They therefore have an insulating effect and make life on earth possible in the first place, as without them it would be quite cold on the earth’s surface (approx. -18°C). The best-known greenhouse gas is CO2, which scientists have assigned a global warming potential of 1. Other greenhouse gases include methane (28 times more climate-effective than CO2) and nitrous oxide (298 times more climate-effective than CO2).

Certain human activities such as the use of fossil fuels and agricultural activities such as animal husbandry and the use of synthetic fertilisers increase the concentrations of greenhouse gases in the atmosphere and thus cause man-made climate change.

GRI = Global Reporting Initiative

What does GRI stand for?

The Global Reporting Initiative supports companies and institutions worldwide in sustainability reporting. The initiative provides the standards free of charge. The GRI Standards are the most widely used standards worldwide for reporting on corporate sustainability.

IOOI = Input-Output-Outcome-Impact

What is IOOI?

The IOOI method is a technique used in the context of CC activities and for societal change to measure (evaluate) the impact of a project. The abbreviation is made up of:

• Input – all resources used (personnel, material, finances, non-material resources)
• Output – quantifiable results of a project such as offers or products
• Outcome – effect achieved in relation to the target group, e.g. actual knowledge gained by the target group (outcome) from published explanatory material used by the target group (output)
• Impact – Long-term, societal impact of the project (objective of the project)

To ensure that the activities of a project are geared towards the desired impact (impact logic), the project team plans from right to left, i.e. starting with the impact and working towards the input. This is to ensure that the resources used are actually the right ones to achieve the goal.

IRO = Impacts, Risks and Opportunities

What does IRO mean?

For environmental reporting, companies describe the significant sustainability-related impacts, risks and opportunities (IRO) of their business activities in relation to the company’s financial performance, but also to the environment and society in general, for example as part of the ESRS, SASB standards or the CSRD.

• For the impacts, a company describes the positive and negative consequences of its own economic activity on areas such as the climate, biodiversity and human rights.
• The risks focus on the consequences of, for example, climate change or resource scarcity for the company. This category also includes changes towards greater sustainability, for example by adapting the legal framework and social change and their effects on the company.
• Under the heading of opportunities, the company looks at possibilities that arise from greater sustainability in its own business activities. These include the development of sustainable products, market entry into the sustainable segment or the reduction of costs (e.g. through energy savings).

ISSB = International Sustainability Standards Board

What does ISSB stand for?

ISSB standards aim to create a global framework for capital markets to promote the use of sustainability-related financial information. The standards developed for the generation of sustainability reports are intended to provide investors and the financial market with all the information that decision-makers need. The main objectives of the ISSB are:

1. Development of a global standard for the disclosure of information on corporate sustainability
2. Meeting the information needs of investors
3. Provision of comprehensive sustainability information for the global capital markets by companies
4. Promotion of information exchange for specific countries and/or broader interest groups

LCA = Life Cycle Assessment = Life Cycle Analysis

What are LCA and PLM?

Life Cycle Assessment (LCA) is a form of accounting that focuses on the ecological impact of a product. In the LCA, the product life cycle management (PLM) is analysed in terms of its ecological impact. This assessment can be carried out in accordance with ISO 14040 and looks at parameters such as the carbon footprint, water and electricity consumption as well as waste production and the use of chemicals. The aim is to show which steps still need to be taken on the way to a circular economy.

LSME = ESRS for listed SMEs

What does SME mean? And what is the difference to VSME?

The LSME builds on the VSME. Both standards will focus on the sustainability reporting of SMEs (small and medium-sized enterprises). Just like the VSME, the LSME is currently (as of May 2024) still under development. EFRAG is developing the VSME for non-listed SMEs on a voluntary basis and the LSME for listed, i.e. capital market-oriented SMEs on a mandatory basis. The LSME is expected to come into force at the beginning of 2026.

NFRD = Non-Financial Reporting Directive

What does NFRD stand for?

The Non-Financial Reporting Directive is an instrument for advancing the EU’s CSR agenda and strengthening the foundations for sustainable investment. It is aimed at companies with more than 500 employees, i.e. large companies. Companies are not bound to a specific form when implementing the directive, but can rely on international, EU-based or national guidelines.

The EU Parliament believes that greater transparency on social and environmental issues will make companies more resilient and better performing in both financial and non-financial terms. On the one hand, because it is an essential element of sustainable financial policy and, on the other, because it increases customer and investor confidence.

The EU NFRD has been replaced by the EU CSRD, which came into force on 5 January 2023 and further increases the requirements and scope of the NFRD.

PCAF = Partnership for Carbon Accounting Financials

What is PCAF?

The PCAF is a financial industry initiative that

1. aims to develop and establish a global standard for greenhouse gas accounting in the financial sector
2. and to encourage financial institutions to voluntarily report on the emissions of their loans and investments.

PCF = Product Carbon Footprint

What does PCF mean?

The product carbon footprint visualises the emissions a product produces over its entire life cycle. Recording the relevant data often reveals potential savings that not only benefit the environment, but also the financial situation. The corporate carbon footprint is to be distinguished from this.

PRI = Principles of Responsible Investment

What does PRI mean?

The six PRI (Principles for Responsible Investment) offer a range of possible measures for incorporating ESG aspects into investment practice. At the same time, PRI also stands for the UN Finance Initiative, which developed these principles. Organisations in the financial sector can become part of this initiative and thereby commit to complying with the principles.

The six PRI principles are:

1. We will incorporate ESG issues into investment analysis and decision-making processes.
2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4. We will promote acceptance and implementation of the Principles within the investment industry.
5. We will work together to enhance our effectiveness in implementing the Principles.
6. We will each report on our activities and progress towards implementing the Principles.

RBC = Responsible Business Conduct

What does RBC stand for?

The OECD Guidelines on Responsible Business Conduct are a guideline for governments to encourage multinational companies to act more responsibly. The RBC covers topics such as human rights, the environment and corruption. If a government has committed itself to the guideline, it should

• set up national RBC centres to publicise the contents of the Directive and confront companies that do not comply with it out of court.
• encourage ‘risk-based due diligence’ audits in companies. Through these audits, negative environmental impacts can be identified and all stakeholders can be consulted.
• support its implementation by creating a favourable legal framework.

REDD+ = Reducing Emissions from Deforestation and Forest Degradation

What is REDD+?

REDD+ is a programme of the UN Climate Change Conference in Paris to protect forests as a means of limiting climate change. The + stands for other forest-related climate protection activities, e.g. the sustainable management of forests. Less developed countries can receive financial rewards through the programme if they stop deforestation and thereby reduce CO2 emissions.

SASB = Sustainability Accounting Standards Board

What does SASB mean?

The standards of the Sustainability Accounting Standards Board (SASB) help companies to prepare relevant information on corporate sustainability for their investors. SASB standards are available for 77 different industries and facilitate reporting by:

• Identification of industry-specific sustainability-related risks and opportunities and their short-, medium- or long-term impact on the company’s cash flow, access to finance and cost of capital
• Identification of those key figures and topics that are most likely to be of use to investors

The SASB is part of the IFRS Foundation and forms a good basis for fulfilling the ISSB standards.

SBTi = Science Based Targets Initiative

Which targets does the SBTi focus on?

The Science Based Targets Initiative (SBTi) supports companies worldwide by showing them a clear path to reducing emissions. Targets are considered ‘science-based’ if they are in line with what the latest climate science says is necessary to achieve the goals of the Paris Agreement – limiting global warming to 1.5°C above pre-industrial levels. To formulate such a target, the initiative takes the following steps:

1. Commitment: Submission of a letter in which the company expresses its intention to set a science-based target
2. Development: Elaboration of an emission reduction target in accordance with the SBTi criteria
3. Submission: Official validation of the target by the SBTi
4. Communication: Announcing the target and informing stakeholders
5. Publication: Reporting on company-wide emissions and annual tracking of target achievement

SBT for Nature = Science Based Targets for Nature

What is SBT for Nature?

The SBT for Nature are a step-by-step guide from the Science Based Targets Network (SBTN) for companies to reduce their own ecological footprint and comply with planetary boundaries. The targets focus on the areas of freshwater, land, biodiversity and ocean. The topic of climate is covered by SBTi. The five steps of SBT for Nature are:

1. Assess: Check the impact of the value chain on nature & create a list of potential environmental impacts
2. Prioritise: Start with areas where actions have the greatest impact (in operations, entire value chain & value chain environment)
3. Set targets: Based on the company’s key impacts
4. Take action: Avoid, reduce, restore & regenerate, transform (step still in progress)
5. Get an overview: Monitor progress, adjust strategy if necessary & report publicly on progress (step still in progress)

SBTN = Science Based Targets Network

What is the difference between SBTi and SBTN?

The SBTN is based on the SBTi – the collaborating organisations overlap. While the SBTi focusses on climate protection, the SBTN deals with the entirety of environmental sustainability and develops methods for cities and companies to promote compliance with planetary boundaries.

SDGs = Sustainable Development Goals

SDGs – THE goals of our time

As ‘Sustainable Development Goals’ is rather complicated to say, the abbreviation ‘SDGs’ is often used. The United Nations (UN) has formulated the 17 goals as a guide for decision-making so that no one or nothing is overlooked. They deal with topics such as poverty, education, biodiversity, corporate sustainability and sustainable lifestyles as well as greater equality among people. The UN wants to achieve the goals by 2030.

SFDR = Sustainable Finance Disclosure Regulation

Are NFRD and SFDR the same thing?

First of all, while the NFRD and SFDR have similar objectives, the SFDR is aimed specifically at developers and providers of financial products and financial advisors. SFDR stands for ‘Regulation on sustainability-related disclosure requirements in the financial services sector’. It obliges financial service providers to inform their customers how and whether sustainability factors play a role in their financial products. They must also disclose the material adverse impacts of their financial products in terms of sustainability. The regulation is particularly relevant for ESG products.

The SFDR is part of the EU’s Sustainable Finance Framework, together with the CSRD and the EU Taxonomy.

SDPI = UN Sustainable Development Performance Indicators

see UNSDPI

SSE = Social and Solidarity Economy

What does SSE stand for?

The SSE (social and solidarity economy) is a collective term for organisations such as cooperatives, associations, foundations, social enterprises, self-help groups and other institutions that work in accordance with the values and principles of the SSE. The central principle is that these organisations carry out their economic, social and ecological activities in the collective/general interest. The activities are based on

• voluntary co-operation
• mutual help
• democratic and/or participatory leadership
• Autonomy and independence
• the primacy of people and social purpose over capital in the distribution and utilisation of surpluses, profits or assets

The following values best describe the work according to the SSE:

• Care for people and the environment
• Equality and fairness
• Interdependence
• Self-administration
• Transparency
• Accountability
• Achieving decent work and livelihoods

The term emerged in the 1990s as a response to social inequality and poor working conditions in less developed countries.

TCA = True Cost Accounting

What is the difference between TCA and LCA?

The aim of true cost accounting (TCA) is to visualise all the costs associated with a product or service. It includes not only the obvious costs, but also the hidden ones, for example any CO2 emissions in the supply chain, the consequences of environmental degradation caused by production or health effects – in other words, all values that are often externalised. Here, the term externalisation refers to all costs that a company does not bear or include in the purchase price, but leaves to other people or nature as ‘damage’. The TCA also assesses, for example, the circularity of a product and takes into account human well-being and respect for human rights. The TCA is particularly popular in connection with the food industry. The TCA builds the analysis on the LCA.

TCFD = Task Force on Climate-related Financial Disclosures

What is the TCFD?

Because climate change poses a financial risk to the global economy, the Financial Stability Board (FSB) established the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD was set up to improve and expand reporting on climate-related financial information.

The TCFD is now soon to be dissolved, with the IFRS Foundation (International Financial Reporting Standards) taking over the work.

UN Global Compact

What is the difference between the SDGs and the UN Global Compact?

As the name suggests, the UN Global Compact is part of the United Nations. The initiative aims to address and support companies in acting sustainably – to be a ‘force for good’. The 10 principles of the UN Global Compact show what exactly this means for the initiative:

1. Businesses should support and respect the protection of internationally proclaimed human rights; and
2. make sure that they are not complicit in human rights abuses.
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. the elimination of all forms of forced and compulsory labour;
5. the effective abolition of child labour; and
6. the elimination of discrimination in respect of employment and occupation.
7. Businesses should support a precautionary approach to environmental challenges;
8. undertake initiatives to promote greater environmental responsibility; and
9. encourage the development and diffusion of environmentally friendly technologies.
10. Businesses should work against corruption in all its forms, including extortion and bribery.

The 10 principles are based on the Universal Declaration of Human Rights, the core labour standard of the International Labour Organization (ILO), the Rio Declaration on Environment and Development and the United Nations Convention against Corruption. Based on these 10 principles and the 17 Sustainable Development Goals (SDGs), the UN Global Compact offers resources, events and materials for companies.

The main difference between the SDGs and the UN Global Compact is that the 17 goals are formulated in general terms and thus address everyone: states, NGOs, companies, private individuals, etc.; the UN Global Compact is aimed specifically at companies as a force for change.

UNSDPI = UN Sustainable Development Performance Indicators

What does UNSDPI stand for?

The UNSDPI are impact indicators for the Sustainable Development Goals (SDGs), measuring the extent to which organisations promote sustainable development or implement the SDGs. The UNSDPI handbook highlights new methods and indicators that integrate ignored or neglected problem areas of previously used measurement and reporting models. A dedicated platform on the UNSDPI website facilitates access to the methods.

VSME = Voluntary SME-Standard

What is VSME?

VSME stands for ‘voluntary standard for sustainability reporting by SMEs’ (SME = small and medium-sized enterprises). Even if the CSRD or ESRS do not apply to SMEs, many still like to publish a sustainability report or are asked to do so by business partners or customers. In order to offer SMEs a standard that is suitable for them, the EU, or more precisely EFRAG, prepared a draft in January 2024 to facilitate the implementation of sustainability reporting in smaller companies. The final version is expected towards the end of 2024.

WEEE = Waste of Electrical and Electronic Equipment

WEEE – Together we can do it?

What sounds like a cool way of saying ‘we’ simply means ‘electronic waste’. And because this e-waste, that is, discarded fridges, computers or mobile phones, poses a major problem when it comes to disposal and recycling, the EU has created a directive on the subject: the WEEE Directive. It is intended to ensure the proper disposal of waste electrical and electronic equipment within the EU.

---

Tina Teucher is an expert in corporate sustainability and works as a sustainability consultant. She specialises in sustainable finance, biodiversity and regenerative business. Tina Teucher is active as a event moderator and speaker in Germany and other European countries.

---

References

https://www.greenbiz.com/article/csrd-csddd-esrs-and-more-cheat-sheet-eu-sustainability-regulations?utm_source=THE+CLIMATE+CHOICE&utm_campaign=58f0288a8a-EMAIL_CAMPAIGN_11_2_2022_COPY_02&utm_medium=email&utm_term=0_df69d73dd8-58f0288a8a-370351333

https://www.csr-in-deutschland.de/DE/CSR-Allgemein/CSR-in-der-Praxis/CSR-Berichterstattung/Standards/standards.html

https://nordesg.de/was-bedeutet-esg/

https://www.nachhaltigkeit.info/artikel/abgrenzung_cs_csr_cc_1501.htm

https://www.hejrockit-werbeagentur.com/blog/blogartikel/sdg-gri-csr-…-der-begriffs-dschungel-nachhaltigkeit

https://unoino.de/uno-ino-glossar-die-wichtigsten-begriffe-zum-thema-nachhaltigkeit/

https://nachhaltigwirtschaften.at/de/fdz/projekte/puis/abkuerzungen-glossar.php

https://deutsche-recycling.de/weee-eu-richtlinie/#internationale-rahmenbedinungen

https://www.ffe.de/veroeffentlichungen/info-was-ist-eigentlich-die-sustainable-finance-disclosure-regulation-sfdr/

https://www.un.org/sustainabledevelopment/sustainable-development-goals/

https://www.wwf.de/themen-projekte/landwirtschaft/ernaehrung-konsum/der-wahre-preis-unserer-lebensmittel

https://www.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/Landwirtschaft/studie-true-cost-accounting-kurzversion.pdf

https://www.ibp.fraunhofer.de/de/kompetenzen/ganzheitliche-bilanzierung/methoden-ganzheitliche-bilanzierung/oekobilanzierung.html

https://sustainabilityservices.eurofins.com/services/life-cycle-assessment-lca/?msclkid=d036cbc6444c14e26a8daefefd31b7ea&utm_source=bing&utm_medium=cpc&utm_campaign=su_uk_ww_lead-gen_always-on_assessment&utm_term=life%20cycle%20assessments&utm_content=su_uk_ww_lead-gen_always-on_assessment_life-cycle

https://www.csr-in-deutschland.de/DE/CSR-Allgemein/CSR-Grundlagen/csr-grundlagen.html

https://www.csr-in-deutschland.de/DE/CSR-Allgemein/CSR-Politik/CSR-in-der-EU/Corporate-Sustainability-Reporting-Directive/corporate-sustainability-reporting-directive-art.html

https://www.nachhaltigkeit.info/artikel/abgrenzung_cs_csr_cc_1501.htm

https://kpmg.com/de/de/home/themen/2023/07/european-sustainability-reporting-standards.html

https://www.tagesschau.de/ausland/europa/faq-eu-taxonomie-101.html

https://kpmg.com/xx/en/home/insights/2023/02/the-eu-corporate-sustainability-due-diligence-directive.html

https://wirtschaftslexikon.gabler.de/definition/esg-kriterien-120056

https://www.helmholtz-klima.de/faq/was-sind-co2-aequivalente

https://vfu.de/tool/partnership-for-carbon-accounting-financials-pcaf/pcaf-faq/

https://www.umweltbundesamt.de/umweltberichterstattung-berichtsstandards

https://www.dke.de/de/arbeitsfelder/components-technologies/circular-economy

https://www.consilium.europa.eu/de/press/press-releases/2024/02/20/consumer-rights-final-approval-for-the-directive-to-empower-consumers-for-the-green-transition/

https://sciencebasedtargetsnetwork.org/take-action-now/take-action-as-a-company/what-you-can-do-now/

https://www.haufe.de/sustainability/strategie/handbuch-sustainable-development-performance-indicators_575772_609462.html

https://www.efrag.org/News/Public-479/EFRAGs-public-consultation-on-two-Exposure-Drafts-on-sustainability-r

https://www.emas.de/was-ist-emas

https://www.umweltbundesamt.de/sites/default/files/medien/11850/publikationen/cbam_factsheet_de.pdf

https://www.kfw.de/nachhaltigkeit/%C3%9Cber-die-KfW/Nachhaltigkeit/Nachhaltige-Unternehmensprozesse/Nachhaltiges-Investment/Principles-for-Responsible-Investment-(PRI)/

---