The source is an ESG library with a great collection of articles, news, reports, research and videos on numerous topics related to ESG that has been curated and constantly updated by the EBI team.
1% for the planet
An international organization whose members contribute at least one percent of their annual revenue to environmental causes to protect the environment. The aim is to offer accountability, prevent greenwashing, and "certify reputable giving.
Link: https://tinyurl.com/2sjukekb
Anti-retaliation
An employee policy that prohibits retaliation and outlines the procedure for reporting retaliation.
Blue Washing
UNGC Blue washing is the practice of businesses signing up for the UN global compact and then using their affiliation with the UNGC to improve their image and divert attention away from their unethical business practices.
Broad-based Black Economic Empowerment (BBBEE)
Broad-Based Black Economic Empowerment (B-BBEE or BEE) is one of the initiatives aiming to target inequality and stimulate economic growth, promoting economic participation and equitable wealth distribution. Intrinsic to its technical name, BEE is a policy that is instrumental in broadening the nation's economic base. By promoting the economic elevation of black people, the approach works to uplift the previously disadvantaged, which will ultimately lead to socio-economic transformation.
The main objective of B-BBEE is the inclusion of black people (defined broadly as Africans, Indians, and Coloureds) in the economy, with a larger goal of national empowerment, targeting historically disadvantaged people such as black people, women, the youth, rural communities, and disabled people.
Link:https://tinyurl.com/y2kczyb2"
Carbon Credits
Carbon Credit is a generic term for any tradable certificate or permits representing the right to emit a set amount of carbon dioxide or the equivalent greenhouse gases. Carbon credits are generated from global projects that pull Greenhouse Gases (GHGs) out of the atmosphere or keep emissions from being released. One credit permits the emission of one ton of carbon dioxide or the equivalent of other greenhouse gases. Typically companies that have exceeded their carbon emission limit will be purchasing Carbon Credit to offset the GHG released by the organization.
Carbon Footprint
Carbon footprint is the total amount of greenhouse gases (including carbon dioxide and methane) generated by our actions. It can be from travel activity, electricity, or even how much we consume food.
Link: https://tinyurl.com/r5ms7r5b
Carbon Negative of Climate Positive
Both terms refer to a situation whereby a company removes or captures more CO2 from the atmosphere than it even emits. As a result, the company has negative carbon emissions and positively impacts the climate.
Carbon Neutral
Carbon neutrality means balancing emitting and absorbing carbon from the atmosphere in carbon sinks.
Carbon Offset
Carbon Offset is an action or activity (such as the planting of trees or carbon sequestration) that compensates for carbon dioxide or other greenhouse gases emission into the atmosphere.
Carbon Trading
Carbon Trading refers to buying and selling the right to produce carbon dioxide emissions so that people, countries, or companies who use a lot of fuel and electricity can buy rights from those that do not use so much.
Link: https://tinyurl.com/5n8wcyzy
CCS/CCUS
Carbon Capture Utilisation and Storage, or CCS, is a geoengineering or climate engineering approach. It reduces carbon dioxide emissions by capturing carbon dioxide and permanently storing it underground.
Link: https://tinyurl.com/yc7p4hn6
Circular Economy
The circular economy is a production and consumption model involving sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.
COP
COP, or Conference of the Parties, is a global climate summit joined by almost all countries worldwide to address and tackle the pressing issue of climate change. The most recent COP, widely known as COP 27, was held in Sharm El-Sheikh in November 2022.
CSR
In the simplest form, CSR includes all the practices put in place by companies to contribute to social and environmental impact positively.
Environment (ESG)
Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change. Energy and water usage, Waste Management, Carbon emission and offset, Toxic product/waste, etc.
Fast Fashion
Fast Fashion is a term used to describe clothing designs that move quickly from the catwalk to stores to take advantage of trends and consumerism. Fast Fashion is widely criticized for polluting the environment, particularly water, and exploiting the workforce in developing countries.
Framework
ESG Framework is a general guideline or principles-based guidance on how ESG information is structured and prepared and what broad topics are covered in an ESG report.
GHG
Green House Gasses (GHG) are any gasses that absorb heat and radiate heat in the earth's atmosphere, which causes the earth to cool down more slowly. Some of the most common GHG include Carbon Dioxide, Water Vapor, Methane, and Nitrous Oxide. Link: https://tinyurl.com/yw5sbs8z
Governance (ESG)
Governance refers to the topic of how a company is governed. These include board and management structures, company policies, executive pay, audits, internal controls, shareholder rights, and more.
Green Washing
Green Washing is where a company spends more resources to falsely market itself as sustainable instead of reducing its environmental impact.
Inclusive Business
Inclusive businesses are companies that develop innovative ways to do commercially viable business with people living at the pyramid's base (BOP) and expand access to basic products and services.
Index or Ratings
An index or Rating is a system that measures companies' financial results that aim to protect the environment rather than earn a quick profit. Generally, companies with better ratings will be favored more by impact investors as they perform better in the measured areas.
International Labour Organization (ILO)
A United Nations agency whose mandate is to advance social and economic justice by setting international labor standards.
Link: https://tinyurl.com/yeyv4ut3
Justice, Equity, Diversity & Inclusion (JEDI)
Justice, Equity, Diversity, and Inclusion (JEDI), are four guiding principles to create a good working environment.
Link:https://tinyurl.com/bdewu6mn
Lean Economy
Lean economics is the means of maintaining the stability of an economy that does not grow. Its institutions are designed as essential means to manage and protect its small scale.
Link: https://tinyurl.com/5f7dnnmm
Living Wage
A living wage is a socially acceptable level of income that provides adequate coverage for basic necessities such as food, shelter, child services, and healthcare. Link: https://tinyurl.com/yc3fnyx2
Materiality
In an ESG context, Materiality refers to a topic, area, or information that could influence financial outcomes or impact created in an organization.
Minimum Wage
The minimum wage is the minimum amount of remuneration an employer must pay wage earners for the work performed during a given period, which a collective agreement or an individual contract cannot reduce.
Link: https://tinyurl.com/4yc3jrh4
Negative Screening
Negative screening is defined as finding companies that score poorly on environmental, social, and governance (ESG) factors relative to their peers.
Link: https://tinyurl.com/ys38w4u2
Net Zero
From the lance of sustainability, Net Zero refers to the state where decarbonization initiatives offset the total carbon released to the environment. Such as tree planting, purchasing Carbon Credit, switching to green energy, etc.
Network for Greening the Financial System (NGFS)
A network of 114 central banks and financial supervisors that aims to accelerate the scaling up of green finance and develop recommendations for central banks' role in climate change.
Link: https://tinyurl.com/39dm25wb
Nexus
Nexus is the leading global knowledge hub for managing and sharing water, Energy, and food security resources. It enables practitioners, researchers, and policymakers to think beyond sectors to ensure access to water, Energy, and food for all.
Link: https://www.water-energy-food.org/about-us
Organisation for Economic Co-operation and Development (O.E.C.D.)
The Organisation for Economic Co-operation and Development (OECD) is an international organization that works to build better policies, establish evidence-based international standards and find solutions to various social, economic, and environmental challenges.
Link: https://tinyurl.com/yc2myhau
Pink Washing
Pink Washing is defined as The corporate or political misuse of the LGBTQIA+ movement to promote themselves as "gay-friendly" to win progressive support while concealing contrary features and actions.
Positive Screening
Positive screening is finding companies that score highly on environmental, social, and governance (ESG) factors relative to their peers.
Link: https://tinyurl.com/4wb7bdhc
Race to Zero
Race to Zero Is an UN-backed global campaign to rally leadership and support. From businesses, cities, regions, and investors for a healthy, resilient, zero-carbon recovery that prevents future threats, creates decent jobs, and unlocks inclusive, sustainable growth. It mobilizes a coalition of leading net-zero initiatives, representing 11,309 non-State actors, including 8,307 companies, 595 financial institutions, 1,136 cities, 52 states and regions, 1,125 educational institutions, and 65 healthcare institutions (as of September 2022). These ‘real economy’ actors join the largest-ever alliance committed to achieving net zero carbon emissions by 2050 at the latest.
Link: https://tinyurl.com/2p9kujbx
Scope 1 GHG Emission
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 GHG Emission
Scope 2 Emission are the emissions company makes indirectly, such as electricity or energy it buys for heating and cooling buildings.
Scope 3 GHG Emission
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.)
Shareholder Primacy
Shareholder Primacy is defined as a business prioritizing the well-being of the shareholder (the owner) above any other business area.
Link: https://tinyurl.com/42rx2kbu
Social Enterprise
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 Impact (ESG)
Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates.
Social Responsibility
Social responsibility is an ethical framework in which an individual is obligated to work and cooperate with other individuals and organizations to benefit the community that will inherit the world that the individual leaves behind.
Link: https://tinyurl.com/mrxbn4y4
Stakeholder Capitalism
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
Standard
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
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
Sustainability
Sustainability means doing business without negatively impacting the environment, community, or society. United Nations Brundtland Commission defined sustainability as "meeting the needs of the present without compromising the ability of future generations to meet their own needs."
Sustainability Roadmap
The sustainability Roadmap guides companies in integrating sustainability-related goals and strategies across the organization.
Sustainable Building
Also known as Eco building, Green Building, or Ecological Building. It is defined as a building that reduces or eliminates negative impacts in its design, construction, or operation and can positively affect our climate and natural environment.
Link: https://tinyurl.com/3r6wbr8c
UNGC
The United Nations Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles, undertake businesses and firms worldwide to adopt sustainable and socially responsible policies, and report on their implementation.
United Nations Development Programme (UNDP)
The United Nations Development Programme is a United Nations agency tasked with helping countries eliminate poverty and achieve sustainable economic growth and human development.
Link: https://tinyurl.com/y4jss84z
Whistleblowing
Refer to a process for a worker to safely report certain types of wrongdoing.
Link: https://tinyurl.com/3txwac33
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