ESG terms, defined plainly.

Bow tie analysis is a visual risk-assessment method that maps the causes and consequences of a specific hazardous event, along with the preventive and mitigating controls in place, in a diagram shaped like a bow tie.

A BRSR report — short for Business Responsibility and Sustainability Report — is a report that listed companies in India are required to prepare and disclose annually as per the Securities and Exchange Board of India's (SEBI) listing regulations.

BRSR Core is the subset of nine Key Performance Indicators within SEBI's Business Responsibility and Sustainability Report that carries mandatory third-party assurance, unlike the rest of the report, which is self-disclosed.

Carbon accounting (also known as greenhouse accounting or greenhouse gas accounting) is a systematic approach to measure, monitor, and report greenhouse gas emissions from various sources, including businesses, organizations, and activities.

'What is a carbon offset? A carbon offset is a way to compensate for your carbon emissions by funding an equivalent carbon dioxide saving elsewhere — this is also what "carbon offsetting" refers to. Carbon offsets are a mechanism that enables entities like governments or businesses to offset their greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions in other locations.

CDP (Carbon Disclosure Project) runs the world's most widely used carbon disclosure project reporting system, helping companies, cities, states, and regions disclose their environmental impact and reduce greenhouse gas emissions. It is based in several countries, including the United Kingdom, Japan, India, China, Germany, Brazil, and the United States.

A climate transition plan is a time-bound action plan that sets out how a company will adapt its business model and operations to meet its climate targets — such as net zero — including the specific steps, investments, and milestones involved.

Corporate sustainability is the practice of managing a company's environmental, social, and governance (ESG) impact alongside its financial performance, so that growth today doesn't come at the expense of long-term business, social, or environmental resilience.

The Corporate Sustainability Reporting Directive (CSRD) is a European Union (EU) legislation that requires large companies to publish regular reports on their environmental and social impact activities. Introduced in 2023, the CSRD aims to ensure that businesses report reliable and comparable sustainability information, enabling investors, consumers, policymakers, and other stakeholders to evaluate their non-financial performance and make more informed decisions

Decarbonization means reducing the amount of carbon dioxide (CO2) and other greenhouse gases (GHGs) released into the atmosphere, primarily through the transition to low-carbon energy sources and the reduction of carbon emissions across various sectors. In short, the meaning of decarbonization is achieving a low-carbon economy and mitigating the impacts of climate change by limiting global warming to well below 2°C above pre-industrial levels and pursuing efforts to limit it to 1.5°C

'A double materiality assessment is a crucial step for companies to identify the most relevant sustainability matters for their organization and stakeholders, as required by the Corporate Sustainability Reporting Directive (CSRD) in the European Union.

An ecological footprint (also called an environmental footprint) measures the amount of biologically productive land and water a person, organization, or activity requires to produce the resources it consumes and absorb the waste it generates, usually expressed in global hectares.

Climate change affects the economy through physical risks (damage from extreme weather and gradual environmental shifts) and transition risks (costs and disruption from the shift to a low-carbon economy), impacting productivity, asset values, and financial stability.

EHS full form is Environment, Health, and Safety. It refers to the discipline, systems, and regulatory framework organizations use to protect employees, the public, and the environment from workplace hazards, occupational illness, injury, and environmental harm.

An emission factor is a value that converts activity data (such as liters of fuel burned or kilowatt-hours of electricity used) into an estimate of the greenhouse gas emissions that activity produces, expressed per unit of activity.

Environmental accounting is the practice of identifying, measuring, and reporting the costs and impacts of an organization's environmental activities — including resource use, emissions, and waste — alongside its traditional financial accounts.

An Environmental Product Declaration (EPD) is a standardized, independently verified document that reports the life-cycle environmental impact of a product, based on the results of a life cycle assessment (LCA). It functions like a nutrition label, but for a product's environmental footprint.

ESG stands for environmental, social, and governance. It is a framework used to assess an organization's business practices and performance on various sustainability and responsibility metrics. ESG reporting meaning, in short: it is the practice of publicly disclosing performance against this framework so investors, regulators, and other stakeholders can evaluate it.

The European Sustainability Reporting Standards (ESRS) are a set of detailed disclosure requirements for companies to report on environmental, social, and governance (ESG) topics. These standards were developed by the European Financial Reporting Advisory Group (EFRAG) and are mandatory for companies operating in the EU under the Corporate Sustainability Reporting Directive (CSRD).

EUDR full form is EU Deforestation Regulation. It is an EU law requiring companies placing certain commodities — including cattle, cocoa, coffee, palm oil, rubber, soy, and wood — on the EU market to prove their supply chains are deforestation-free and legally produced.

FMEA full form is Failure Mode and Effects Analysis. It is a systematic method for identifying how a process, product, or system could fail, evaluating the severity and likelihood of each failure, and prioritizing which risks need corrective action first.

The Greenhouse Gas (GHG) Protocol is a comprehensive and widely accepted standard for measuring and managing greenhouse gas emissions. It was established in 1990 by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) in response to the growing need for a consistent framework for greenhouse gas reporting. The GHG Protocol provides guidelines for businesses, governments, and other organizations to track, report, and mitigate their emissions, aligning with the Paris Agreement and other climate change initiatives.

Green IT (green information technology) is the practice of designing, using, and disposing of computing infrastructure — hardware, data centers, and software — in a way that minimizes energy consumption, resource use, and electronic waste.

Greenwashing is a deceptive marketing practice where companies or organizations make misleading or false claims about the environmental benefits of their products, services, or overall business practices. The term was coined in the 1980s and has gained significant attention in recent years as consumers and investors have become more environmentally conscious.

GRI full form is Global Reporting Initiative. What is GRI reporting? The Global Reporting Initiative (GRI) is an international, independent standards organization that helps businesses, governments, and other organizations understand and communicate their impacts on issues such as climate change, human rights, and corruption. It provides a framework for sustainability reporting, which covers a wide range of economic, environmental, and social topics. The GRI Standards are widely adopted and used by over 10,000 companies from more than 100 countries

Hazardous waste is waste that poses a substantial risk to human health or the environment because it is toxic, flammable, corrosive, or reactive. Hazardous waste management is the collection, storage, treatment, and disposal of this waste in a way that safely contains that risk.

HAZOP full form is Hazard and Operability Study. A HAZOP study is a structured, systematic technique for identifying potential hazards and operability problems in a process or system, commonly used in the chemical, oil and gas, and process manufacturing industries.

Key risk indicators (KRIs) are metrics used to signal that an organization's exposure to a specific risk is increasing, so that action can be taken before the risk materializes into an actual loss or incident.

The Kyoto Protocol was an international treaty that committed its parties to reduce greenhouse gas emissions, based on the scientific consensus that global warming is occurring and that man-made CO2 emissions are a driving factor.

LCA full form: Life Cycle Assessment (also referred to as LCAs). Life cycle assessment (LCA) is a methodology for assessing environmental impacts associated with all stages of a product's life cycle, from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling

LOTO full form is Lockout-Tagout. It is a safety procedure used to ensure that hazardous machines or energy sources are properly shut off and cannot be started up again before the completion of maintenance or repair work.

MRO full form is Maintenance, Repair, and Operations. It refers to the activities, spare parts, tools, and supplies needed to maintain and repair equipment and facilities, and to keep production or operational systems running.

Net zero meaning, in short: net zero (also called net zero emissions or net zero carbon emissions) is a target where any remaining greenhouse gas emissions are completely neutralized or offset by removing an equivalent amount from the atmosphere. It means that human activities no longer contribute to further warming of the planet.

The Non-Financial Reporting Directive (NFRD) is a regulatory framework established by the European Union to promote transparency and accountability among large corporations. It requires companies to disclose non-financial information, such as environmental, social, and governance (ESG) performance, in addition to their financial reports.

The Paris Agreement on climate change is an international treaty adopted in 2015 to address the global threat of climate change. The agreement aims to mitigate the effects of climate change by reducing greenhouse gas emissions and promoting sustainable development.

PHA full form is Process Hazard Analysis (also used for Preliminary Hazard Analysis). It is a systematic method for identifying, evaluating, and controlling hazards associated with an industrial process, typically performed early in a facility's design or before a HAZOP study.

Product stewardship is the principle that everyone involved in a product's life cycle — manufacturers, distributors, retailers, and consumers — shares responsibility for reducing its environmental and health impact, from design through disposal.

A safety pledge (also called a safety oath) is a formal commitment made by employees and organizations to prioritize workplace safety. In India, a safety pledge is traditionally read aloud during National Safety Day (March 4) observances, reaffirming a shared responsibility for accident prevention.

SASB full form: Sustainability Accounting Standards Board. SASB is a non-profit organization that develops industry-specific sustainability standards for publicly traded companies. These standards are designed to help companies disclose their sustainability performance in a consistent and comparable manner, enabling investors to make more informed decisions. The SASB standards are organized by industry and cover a range of sustainability topics relevant to investor decision-making.

SBTi full form is Science Based Targets initiative. SBTi is a global body that validates corporate emissions-reduction targets, ensuring they align with the level of decarbonization required to limit global warming to well below 2°C, and ideally 1.5°C, above pre-industrial levels.

Scope 1 emissions are direct greenhouse gas (GHG) emissions that occur from sources that are controlled or owned by an organization. These include emissions associated with fuel combustion in boilers, furnaces, vehicles, and other equipment, as well as accidental or fugitive emissions like chemical and refrigerant leaks and spills.

Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. These emissions physically occur at the facility where they are generated but are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use

Scope 3 emissions are all indirect greenhouse gas emissions that occur in a company's value chain, both upstream and downstream. Unlike Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from purchased electricity, steam, heating, and cooling), Scope 3 emissions are not under the direct control of the company. They include emissions from sources like purchased goods and services, business travel, employee commuting, use of sold products, and end-of-life treatment of sold products. Scope 3 often represents the largest portion of a company's carbon footprint, making it crucial for comprehensive climate action strategies, despite being the most challenging to measure and manage.

'SFDR full form: Sustainable Finance Disclosure Regulation. The Sustainable Finance Disclosure Regulation (SFDR) is a European Union regulation that came into effect on March 10, 2021. It''s part of the EU''s broader action plan on sustainable finance, aiming to reorient capital flows towards sustainable investments.

Supplier evaluation is the process of systematically assessing a supplier's performance and risk — covering factors like quality, delivery reliability, financial stability, and increasingly environmental and social performance — before onboarding them and on an ongoing basis.

Supply chain risk management is the process of identifying, assessing, and mitigating risks that could disrupt the flow of goods, services, or information through a company's supply chain — including operational, financial, regulatory, and environmental risks.

Sustainability Disclosure Requirements (SDR) refer to a set of rules and regulations that require companies and financial institutions to disclose information about their environmental, social, and governance (ESG) practices and impacts. These requirements are being implemented in various jurisdictions to improve transparency, aid decision-making for investors, and promote sustainable business practices.

The Task Force on Climate-related Financial Disclosures (TCFD) is a global organization established by the Financial Stability Board (FSB) in 2015 to develop a set of recommended climate-related disclosures for companies and financial institutions. The TCFD framework aims to provide a globally recognized framework for organizations to disclose their climate-related risks, opportunities, and financial impacts.

A water footprint is a measure of the total volume of fresh water used, directly or indirectly, to produce a product, support an activity, or sustain a person, business, or nation — including water consumed in a product's full supply chain.