Glossary

Scope 1 Emission refers to the Green House Gas (GHG) emissions that a company makes directly — for example, while running its boilers and vehicles.

Scope 2 Emission are the emissions company makes indirectly, such as electricity or energy it buys for heating and cooling buildings. 

Scope 3 Emission refers to all emissions associated, not with the company itself, but that the organization is indirectly responsible for, up and down its value chain (e.g., transportation, etc.)   

A corporate governance philosophy that prioritizes maximizing shareholder value above the interests of other stakeholders, such as employees, customers, and the community. .

https://corporatefinanceinstitute.com/resources/equities/what-is-shareholderprimacy/

Investopedia defines a social enterprise or business as a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment. The profits are principally used to fund social programs.

Link: https://tinyurl.com/238jjncd

Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates.

Social responsibility is a moral framework where organizations and individuals strive to act for the greater good and avoid causing harm to society and the environment.

https://www.humanrightscareers.com/issues/what-is-social-responsibility/

Stakeholder Capitalism is a system in which corporations are oriented to serve the interests of all their stakeholders. The key stakeholders are customers, suppliers, employees, shareholders, and local communities. Under this system, a company's purpose is to create long-term value and not to maximize profits and enhance shareholder value at the cost of other stakeholder groups.

Link: https://tinyurl.com/4umf6f2r

ESG Standards provide specific, detailed, and replicable requirements for what should be reported for each topic, including metrics to measure your ESG initiatives.

Supply chain due diligence is a process in which a company researches and investigates potential suppliers to identify any risks associated with those businesses. Typically these risks will range from legislative and governance issues to ethical and environmental concerns. For example, companies may need to ensure that the suppliers they work with are not involved in practices such as money laundering, child labor, human trafficking, corruption and bribery, and environmental damage.

By implementing a supply chain due diligence policy, companies can identify any risks from working with different suppliers. Increasingly, supply chain due diligence is used to ascertain whether proposed suppliers align with the company's ESG goals and requirements. As a result of this due diligence, companies can then decide whether to work with specific suppliers and whether suppliers should be asked to take any corrective action before carrying out work for the company.

Link: https://tinyurl.com/59nhhsd8