Quick Reference
Compliance Glossary
Quick definitions of key compliance and sustainability terms
- CSRD
- Corporate Sustainability Reporting Directive - An EU regulation requiring companies to report on their environmental and social impact.
- Double Materiality
- A concept requiring companies to report both how sustainability issues affect their business (financial materiality) and how their business affects society and the environment (impact materiality).
- ESRS
- European Sustainability Reporting Standards - The detailed reporting standards companies must follow under CSRD.
- SOX
- Sarbanes-Oxley Act - US legislation requiring strict auditing and financial regulations for public companies.
- ESG
- Environmental, Social, and Governance - A framework for evaluating a company's sustainability and ethical impact.
- Scope 1, 2, and 3 Emissions
- Categories of greenhouse gas emissions: Scope 1 (direct), Scope 2 (indirect from energy), and Scope 3 (all other indirect emissions in the value chain).
- Materiality Assessment
- The process of identifying which sustainability topics are most significant to a company and its stakeholders.
- TCFD
- Task Force on Climate-related Financial Disclosures - A framework for disclosing climate-related financial risks.
- GRI
- Global Reporting Initiative - A widely used framework for sustainability reporting.
- Assurance
- Independent verification of sustainability reports by external auditors to ensure accuracy and compliance.