Glossary

This glossary includes terms and definitions for Envizi ESG Suite.

The following cross-references are used in this glossary:

See refers you from a term to a preferred synonym, or from an acronym or abbreviation to the defined full form.
See also refers you to a related or contrasting term.

A

account

Tracks consumption, cost, and activity data for utilities, such as electricity or natural gas. Accounts can also track KPI information and spend data of suppliers for Scope 3 reporting. Typically, the frequency in which account data is uploaded is monthly or quarterly. Activity data is captured for any period in records and the data is normalized into monthly values for reporting purposes.

account style

A schema or template for a data type. You can have many account styles for a single data type. Account styles determine which fields are available when you capture data records for an account and which data is captured when you upload data in bulk. Rules are used in account styles to define which fields are mandatory, assign default values, assign a scope 3 category, and to perform some basic math, for example, convert from liters to gallons, on data input.

accrued data

Estimates that are generated by the system for missing consumption or cost data, or both in accounts. The missing data generally represents gaps in a historical data set. The gaps might be because of missing invoices or the latest invoice might not yet be available.

actions

Actions and action plans, including transition plans, that can ensure that the entity delivers set targets and through which the entity seeks to address material impacts, risks, and opportunities. Actions can also refer to the decisions to support these plans by using financial, human, or technological resources.

activity data

A quantitative measure of a specific action or process that generates greenhouse gas emissions. Examples include electricity consumed, fuels burned, and distance traveled. See also greenhouse gases and emission.

actor in the value chain

Individuals or entities in the upstream or downstream value chain. The actor is considered downstream from an entity, such as distributors and customers, when the actor receives products or services from the entity. An actor is considered upstream from the entity, such as suppliers, when it provides products or services that are used in the production of the entity's own products or services.

actual data

Data that refers to real, measured data points rather than estimated data points.

adequate wage

A wage that provides for the satisfaction of the needs of the worker and their family. The wage is considered in the context of national economic and social conditions.

administrative, management, and supervisory bodies

The governance bodies with the highest decision-making authority in the entity, including its committees. If in the governance structure, no members of the administrative, management, or supervisory bodies of the entity exist, the CEO, and if such function exists, the deputy CEO, should be included. In some jurisdictions, governance systems consist of two tiers, where supervision and management are separated. In such cases, both tiers are included under the definition of administrative, management, and supervisory bodies.

affected communities

People or groups who live or work in the same area that are, or might be, affected by a reporting entity's operations or through its upstream and downstream value chain. Affected communities can range from people who live next to the entity's operations, such as local communities, to people who live at a distance. Affected communities include actually and potentially affected Indigenous Peoples.

annual total remuneration

Annual total remuneration to own workforce includes salary, bonus, stock awards, option awards, nonequity incentive plan compensation, change in pension value, and nonqualified deferred compensation earnings provided over the course of a year.

anticipated financial effects

Financial effects that do not meet the recognition criteria for inclusion in the financial statement line items in the reporting period and that are not captured by the current financial effects.

area at water risk

A water catchment, where several physical aspects related to water:

lead to one or more water bodies to be in less than good status and/or deteriorate in status as defined in Directive 2000/60/EC of the European Parliament and of the Council, thus pointing to significant issues as regards water availability, quality, and quantity, including high water-stress and/or
lead to issues as regards accessibility of water, regulatory or reputational issues (including the shared use of water with communities and affordability of water) for its facilities and for the facilities of key suppliers.

area of high-water stress

Regions where the percentage of total water that is withdrawn is high, that is, 40-80%, or extremely high, that is, greater than 80%, in the Aqueduct Water Risk Atlas tool of the World Resources Institute (WRI). See also water scarcity.

Asset: A resource that has a financial value and that can be invested in, for example: a company, a property, or a project.
Asset class: A group of financial instruments that have similar financial characteristics, for example, residential real estate or commercial real estate.

associated process materials: Materials that are needed for the manufacturing process, but are not part of the final product, such as lubricants for manufacturing machinery.

B

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BAT

See Best Available Techniques (BAT)

BAT-AEL

See Best Available Technique-Associated Emission Level (BAT-AEL)

BAT-AEPL

See Best Available Technique-Associated Environmental Performance Level (BAT-AEPL)

BAT conclusions

See Best Available Technique (BAT) conclusions

Best Available Techniques (BAT)

A document containing the parts of a BAT reference document laying down the conclusions on best available techniques, their description, information to assess their applicability, the emission levels associated with the best available techniques, the environmental performance levels associated with the best available techniques, the minimum content of an environmental management system including benchmarks associated with the best available techniques, associated monitoring, associated consumption levels and, where appropriate, relevant site remediation measures.

Best Available Technique-Associated Emission Level (BAT-AEL)

The range of emission levels that are obtained under normal operating conditions calculated by using a best available technique or a combination of best available techniques as described in BAT conclusions. The range of emission levels is expressed as an average over a period of time, under specified reference conditions, that is, the emission level that is associated with a BAT.

Best Available Technique-Associated Environmental Performance Level (BAT-AEPL)

The range of environmental performance levels, except emission levels, obtained under normal operating conditions by using a BAT or a combination of BATs.

Best Available Techniques (BAT) conclusions

A document that contains the parts of a BAT reference document that outlines the following information about best available techniques:

Conclusions
A description
Information to assess their applicability
The emission levels associated with the best available techniques
the environmental performance levels associated with the best available techniques
The minimum content of an environmental management system that includes benchmarks that are associated with the best available techniques
Associated monitoring
Associated consumption levels
Where appropriate, relevant site remediation measures

biodiversity loss

The reduction of any aspect of biological diversity, that is, diversity at the genetic, species and ecosystem levels in a particular area. The loss occurs through death, including extinction, destruction, or physical manual removal. Biodiversity loss can refer to many scales, from global extinctions to population extinctions, resulting in decreased total diversity at the same scale. See also biodiversity or biological diversity.

biodiversity or biological diversity

The variability among living organisms from all sources that includes terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are a part. Biodiversity includes variation in genetic, phenotypic, phylogenetic, and functional attributes, and changes in abundance and distribution over time and space within and among species, biological communities, and ecosystems. See also Key Biodiversity Area.

biodiversity sensitive area

Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas (KBA), and other protected areas, as referred to in Appendix D of Annex II to Commission Delegated Regulation (EU) 2021/2139 (8). See also Key Biodiversity Area.

biosphere integrity or ecological integrity

The ability of an ecosystem to support and maintain ecological processes and a diverse community of organisms.

blue economy

All industries and sectors that are related to oceans, seas, and coasts, whether they are based in the marine environment, such as shipping, fisheries, and energy generation, or on land such as. ports, shipyards, land-based aquaculture and algae production, and coastal tourism.

BREF

See EU Best Available Techniques reference documents.

bribery

Dishonestly persuading someone to act in your favor by giving them a gift of money or another inducement.

build to order: A production model where a product is manufactured only once, in response to an order or on the expectation of an order.
build to plan: A production model where products are manufactured or acquired in response to sales forecasts.

business model

The entity's system of transforming inputs through its activities into outputs and outcomes that aims to fulfill the entity’s strategic purposes and create value over the short, medium, and long term. ESRS uses the term business model in the singular, although it is recognized that organizations might have more than one business model.

business relationships

The relationships that the entity has with business partners, entities in its value chain, and any other non-State or State entity that is directly linked to its business operations, products, or services. Business relationships are not limited to direct contractual relationships. These relationships include indirect business relationships in the entity's value chain beyond the first tier, and shareholding positions in joint ventures or investments.

by-product

A substance or object resulting from a production process the primary aim of which is not the production of that substance or object is considered not to be waste, but to be a by-product if the following conditions are met:

further use of the substance or object is certain
the substance or object can be used directly without any further processing other than normal industrial practice
the substance or object is produced as an integral part of a production process and
further use is lawful, that is, the substance or object fulfills all relevant product, environmental and health protection requirements for the specific use and will not lead to overall adverse environmental or human health impacts .

C

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carbon accounting: The process of measuring, tracking, and reporting greenhouse gas emissions associated with an activity, product, or organization. See also greenhouse gases and emission.
carbon credit: A transferable or tradable instrument that represents one metric tonne of CO2eq emission reduction or removal and is issued and verified according to recognized quality standards.
carbon dioxide (CO₂) equivalent (eq): The universal unit of measurement to indicate the global warming potential (GP) of each greenhouse gas, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing, or avoiding releasing, different greenhouse gases on a common basis. See also greenhouse gases.
carbon offsets: A way to compensate for greenhouse gas emissions by funding projects that reduce or remove emissions elsewhere. The projects can include reforestation, renewable energy, or energy efficiency initiatives. By purchasing carbon offsets, individuals or organizations can balance out their own emissions and contribute to a more sustainable future. See also greenhouse gases and emission.

chatbot: A computer program that simulates conversation with human users, especially over the Internet.

child labor

Work that deprives children of their childhood, their potential, and their dignity, and that is harmful to physical and mental development.

circular economy

An economic system in which the value of products, materials, and other resources in the economy is maintained for as long as possible, enhancing their efficient use in production and consumption. The circular economy reduces the environmental impact of their use by minimizing waste and the release of hazardous substances at all stages of their lifecycle, including through the application of the waste hierarchy.

circular economy principles

The European circular economy principles are:

usability
reusability
repairability
disassembly
remanufacturing or refurbishment
recycling
recirculation by the biological cycle
other potential optimization of product and material use

circular material use rate

Recirculation of materials, components and products in practice after first use employing the following strategies in order of preference:

maintenance or prolonged use
reuse or redistribution
refurbishment or remanufacturing
recycling , composting, or anaerobic digestion.

The use rate is defined as the ratio of circular use of materials to overall use of materials

classification hierarchy

The classification or primary hierarchy reflects the structure of an organization. It consists of classification groups and locations. It builds the reporting structure to ensure that all data rolls up to the top-level organization node of the hierarchy. Each location must be included in a classification group to be included in reporting.

The reporting percentage of each location must not exceed 100% in the classification hierarchy. For example, a location might be included in two classification groups, offices and retail. If the reporting percentage of the location in each group is set to 50%, the location does not exceed 100% for the entire classification hierarchy. You’ll receive a warning if the maximum percentage is exceeded.

classified information

EU classified information as defined in Council Decision 2013/488/EU (10) on the security rules for protecting EU classified information or classified by one of the Member States and marked according to Appendix B of that Council decision.

Client ID

A piece of information that identifies an individual application. An application can invoke an API only if it passes an application key that is recognized by the IBM API Connect® system and is granted access to the API. The application key is passed by the client by using an HTTP query parameter.

client secret

A piece of information that is used with an application key to verify the identity of an application. An API can be configured to require that client applications supply their application secret with their application key. The application secret functions effectively as a password known only to the application. The application secret is passed by the client using an HTTP query parameter.

climate change adaptation

The process of adjustment to actual and expected climate change and its impacts.

climate change mitigation

The process of reducing GHG emissions and holding the increase in the global average temperature to 1.5 °C above pre-industrial levels, in line with the Paris Agreement. See also greenhouse gases and emission.

climate resilience

The capacity of an entity to adjust to climate changes, and to developments or uncertainties related to climate change. Climate resilience involves the capacity to manage climate-related Scope 1 and benefit from climate-related opportunities, including the ability to respond and adapt to transition risks and physical risks. An entity's climate resilience includes both its strategic resilience and its operational resilience to climate-related changes, developments, or uncertainties that are associated with climate change.

climate-related opportunity

Potential positive effects related to climate change for the undertaking. Efforts to mitigate and adapt to climate change can produce opportunities for undertakings. Climate-related opportunities will vary depending on the region, market, and industry where an undertaking operates.

climate-related physical risk

Risks resulting from climate change that can be event-driven, also known as acute physical risk, or from longer-term shifts in climatic patterns, also known as chronic physical risk. Acute physical risks arise from weather-related events such as storms, floods, drought or heatwaves, which are increasing in severity and frequency. Chronic physical risks arise from longer-term shifts in climatic patterns including changes in precipitation and temperature, which could lead to sea level rise, reduced water availability, biodiversity loss, and changes in soil productivity. These risks could carry financial implications for an entity, such as costs resulting from direct damage to assets or indirect effects of supply-chain disruption. The entity's financial performance could also be affected by changes in water availability, sourcing, and quality and extreme temperature changes affecting the entity's premises, operations, supply chains, transportation needs, and employee health and safety.

climate-related risks

Climate-related risks refer to the potential negative effects of climate change on an entity. These risks are categorized as climate-related physical risks and climate-related transition risks. See also climate-related physical risk and climate-related transition risk.

climate-related transition risk

Risks that arise from efforts to transition to a lower-carbon economy. Transition risks include policy, legal, technological, market, and reputational risks. These risks could carry financial implications for an entity, such as increased operating costs or asset impairment due to new or amended climate-related regulations. The entity's financial performance could also be affected by shifting consumer demands and the development and deployment of new technology.

climate-related transition plan

An aspect of an entity's overall strategy that lays out the entity's targets, actions, or resources for its transition toward a lower-carbon economy, including actions such as reducing its greenhouse gas emissions.

collective bargaining

All negotiations which take place between an employer, a group of employers or one or more employers' organizations, on the one hand, and one or more trade unions or, in their absence, the representatives of the workers duly elected and authorized by them in accordance with national laws and regulations, on the other, for:

determining working conditions and terms of employment; and/or
regulating relations between employers and workers; and/or regulating relations between employers or their organizations and a workers' organization or workers' organizations.

confirmed incident

Incident of child or forced labor or human trafficking that is substantiated. Confirmed incidents do not include incidents of child or forced labor or human trafficking that are still under investigation in the reporting period.

confirmed incident of corruption or bribery

An incident of corruption or bribery that is substantiated. Confirmed incidents of corruption or bribery do not include incidents of corruption or bribery that are still under investigation at the end of the reporting period. The determination of potential noncompliance cases as substantiated might be made either by the entity's compliance officer or similar function or an authority. A determination as substantiated by a court of law is not required. See also bribery and corruption.

contractual instrument

Contracts between two parties for the sale and purchase of energy that are bundled with attributes about the energy generation or unbundled attribute claims.

Compliance & Jurisdiction

Certificates that are retired under regional renewable electricity programs. Electricity suppliers are required to source a percentage of their supply from renewable energy sources, which can be attributed to the organizations inventory.

consumer

Individuals who acquire, consume, or use goods and services for personal use, either for themselves or for others, and not for resale, commercial or trade, business, craft, or profession purposes.

corporate culture

Corporate culture expresses goals through values and beliefs. Corporate culture guides the entity's activities through shared assumptions and group norms, such as values or mission statements or a code of conduct.

corruption

Abuse of entrusted power for private gain, which can be instigated by individuals or organizations. Corruption includes practices such as facilitation payments, fraud, extortion, collusion, and money laundering. It also includes an offer or receipt of any gift, loan, fee, reward, or other advantage to or from any person as an inducement to do something that is dishonest, illegal, or a breach of trust in the conduct of the entity's business. This inducement can include cash or in-kind benefits, such as free goods, gifts, and holidays, or special personal services that are provided for the purpose of an improper advantage, or that can result in moral pressure to receive such an advantage.

credible proxies

Individuals with sufficiently deep experience in engaging with affected stakeholders from a particular region or context, for example, women workers on farms, Indigenous Peoples or migrant workers, who can help to effectively convey their likely concerns. In practice, credible proxies can include development and human rights NGOs, international trade unions and local civil society, and faith-based organizations.

current financial effects

Financial effects for the current reporting period that are recognized in the primary financial statements.

custom framework

You can create your own representation of a reporting framework in Sustainability Reporting Manager and add questions.

customer: A person or organization that buys goods, services, or information from a store or business.

D

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dashboard: An interface that integrates data from a variety of sources and provides a unified display of relevant and in-context information.
data feed: A recurring source of data with a predictable structure that is fed into, or read by, Supply Chain Intelligence Suite from a file or other data source.
data mapping: A defined mapping between the data in a UMF file and the corresponding tables and table columns in the entity database. A data mapping must exist to successfully load data into the entity database.
data model: A common model that facilitates reporting of all types of data from multiple data sources.
data type: Models a type of data that can be captured by accounts, for example, diesel transport in liters [L]. The data type defines the primary unit of measure for consumption, such as liters, and for cost, if applicable. Another data type under the same diesel transport category might be diesel transport in gallons [gal]. In Envizi ESG Suite, an activity can be collected and recorded in different formats, but the data type enforces a single unit of measure. Each account is associated with a single data type. If the data type represents environmental data, it has a GHG scope assigned. The data type and the scope impact the emissions factor that is assigned.
data type category: A grouping of related data types, for example, electricity, natural gas, waste, building metrics, stationary fuels, floor space, KPI, and social and environmental metrics.
data type group: A collection of data types that share a common reporting measure. Data groups are primarily used to create ratios, but are also used in custom reports.
data value: The actual information contained in a field, such as "Bob," george@someotherdomain.com, or 12/27/2013.
decarbonization levers: Aggregated types of mitigation actions such as energy efficiency, electrification, fuel switching, use of renewable energy, products change, and supply-chain decarbonization that fit with the undertaking's specific actions.
deforestation: Temporary or permanent human-induced conversion of forested land to non-forested land.
degradation or degraded ecosystem: Chronic human impacts that cause the loss of biodiversity and the disruption of an ecosystem’s structure, composition, and functionality.
dependencies: The situation of an entity being dependent on natural, human, and social resources for its business processes.
deposit in water and soil: An amount of a substance that has accumulated in the environment, either in water or in soil, and either as a consequence of regular activities or from incidents or from disposals of undertakings, independent of whether that accumulation occurs at the production site of an entity or outside.
desertification: Land degradation in arid, semi-arid, and dry sub-humid areas resulting from various factors, including climatic variations and human activities. Desertification does not refer to the natural expansion of existing deserts.
developer: In Supply Chain Intelligence Suite, a role with responsibility for managing data using data feeds to Supply Chain Intelligence Suite.
discharge: Wastewater discharge means the amount of water in m³ or substance in kg BOD/d or comparable added or leached to a water body from a point or a non-point source. Sewage effluent or discharge means treated sewage that is discharged from a sewage treatment plant.
disclosure: A report that includes responses to questions from one or more sustainability frameworks. You can export the disclosure and include it in a sustainability report, such as your annual report, corporate social responsibility report, or a regulatory filing.; You select one or more frameworks as the basis of the disclosures. The disclosure is populated with questions from the frameworks.
disclosure topic: A specific sustainability-related risk or opportunity based on the activities that are conducted by organizations within a particular industry as set out in an IFRS Sustainability Disclosure Standard or a SASB Standard.
discrimination: Discrimination can occur directly or indirectly. Direct discrimination occurs when an individual is treated less favorably by comparison to how others, who are in a similar situation, have been or would be treated, and the reason for this is a particular characteristic that they hold, which falls under a ‘protected ground’. Indirect discrimination occurs when an apparently neutral rule disadvantages a person or a group sharing the same characteristics. It must be shown that a group is disadvantaged by a decision when compared to a comparative group.
double materiality: Double materiality has two dimensions which are called impact materiality and financial materiality. A sustainability matter meets the criterion of double materiality if it is material from the impact perspective or the financial perspective or both.
durability of a product, component, or material: The ability of a product, component, or material to remain functional and relevant when used as intended.

E

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ecosystems: A dynamic complex of plant, animal, and micro-organism communities and their nonliving environment interacting as a functional unit. A typology of ecosystems is provided by the IUCN Global Ecosystem Typology 2.0.
ecological threshold: The point at which a relatively small change in external conditions causes a rapid change in an ecosystem. When an ecological threshold is passed, the ecosystem might no longer be able to return to its state by its inherent resilience See also climate resilience.
ecosystem extent: The size of an ecosystem asset, whereas an ecosystem asset is the contiguous space of a specific ecosystem type characterized by a distinct set of biotic and abiotic components and their interactions.
ecosystem restoration: Any intentional activities that initiate or accelerate the recovery of an ecosystem from a degraded state.
ecosystem services: The contributions of ecosystems to the benefits that are used in economic and other human activity, respectively the benefits people obtain from ecosystems. In the Millennium Ecosystem Assessment, ecosystem services can be divided into supporting, regulating, provisioning, and cultural. The Common International Classification of Ecosystem Services (CICES) classifies types of ecosystems services.

emission: The direct or indirect release of substances, vibrations, heat, or noise, from individual or diffuse sources into air, water or soil.

emission factor

Quantifies the amount of greenhouse gas that is released into the atmosphere by an activity or process. Greenhouse gasses are converted into carbon dioxide equivalent (CO2e) to make the tracking of emissions easier. See also greenhouse gases

employee

An individual who is in an employment relationship with the entity according to national law or practice.

end-users

Individuals who ultimately use or are intended to ultimately use a particular product or service.

energy attribute certificates

Energy attribute certificates are documents that provide proof of the generation of green energy. They are also known as:

RECs (Renewable Energy Certificates) in the US
EACs (Energy Attribute Certificates) in Europe
GOs (Guarantees of Origin)
I-RECs (International Renewable Energy Certificates)
LCGs (Australia Large-Scale Generation Certificates)

ESG

Environmental, social, and governance (ESG) are three pillars that are used to assess the impact of a company on society.

estimated data

Information derived by the user based on reasonable assumptions when actual data is not available.

equal opportunities

Equal and nondiscriminatory access, among individuals, to opportunities for education, training, employment, career development, and the exercise of power without being disadvantaged based on criteria such as gender, racial or ethnic origin, nationality, religion or belief, disability, age, or sexual orientation.

equal treatment

The principle of equal treatment is a general principle of European law, which presupposes that comparable situations or parties in comparable situations are treated in the same way. In the context of ESRS S1, the term equal treatment also refers to the principle of nondiscrimination, according to which there shall be no direct or indirect discrimination based on any ground such as sex, race, color, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age, or sexual orientation.

EU Best Available Techniques Reference Documents

A document that results from the exchange of information organized according to Article 13 of Directive 2010/75/EU of the European Parliament and of the Council (9) on industrial emissions, drawn up for defined activities and describing, in particular, applied techniques, present emissions and consumption levels, techniques considered for the determination of best available techniques and BAT conclusions and any emerging techniques, giving special consideration to the criteria listed in Annex III of Directive 2010/75/EU.

external event

A significant occurrence in an area such as weather, news, or geopolitics that can affect orders or shipments in a supply chain.

F

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firm order exception (FOE): An order that is assembled, built, or shipped in anticipated of a signed purchase order.
FOE: See firm order exception.
financed emissions: The portion of gross greenhouse gas emissions of an investee or counterparty attributed to the loans and investments that are made by an entity to the investee or counterparty. These emissions are part of Scope 3 Category 15 (investments) as defined in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011). See also greenhouse gases.
financial effects: Effects from risks and opportunities that affect the entity's financial position, financial performance, and cash flows over the short, medium, or long term.
financial materiality: A sustainability matter is material from a financial perspective if it generates risks or opportunities that affect, or might reasonably be expected to affect, the entity's financial position, financial performance, cash flows, access to finance, or cost of capital over the short, medium, or long term.
forced labor: All work or service, which is exacted from any person under the threat of penalty and for which the person has not offered themselves voluntarily. The term encompasses all situations in which persons are coerced by any means to perform work and includes both traditional ‘slave-like’ practices and contemporary forms of coercion where labor exploitation is involved, which might include human trafficking and modern slavery.
fossil fuel: Nonrenewable carbon-based energy sources such as solid fuels, natural gas, and oil.
Free, Prior and Informed Consent (FPIC): A manifestation of Indigenous Peoples’ right to self-determine their political, social, economic, and cultural priorities. FPIC constitutes three interrelated and cumulative rights of Indigenous Peoples, that is, the right to be consulted, the right to participate, and the right to their lands, territories, and resources. FPIC pertains to Indigenous Peoples and is recognized under international human rights law, notably the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
freshwater: Groundwater and surface water, with a mean annual salinity of < 0.5 ‰, that is, the limit mentioned in Annex II of the Water Framework Directive.

G

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general purpose financial reports

Reports that provide financial information about a reporting entity that is useful to primary users in making decisions relating to providing resources to the entity. Primary users consider the following decisions:

Buying, selling, or holding equity and debt instruments
Providing or selling loans and other forms of credit
Exercising rights to vote on, or otherwise influence
The entity's management’s actions that affect the use of the entity's economic resources

General purpose financial reports include, but are not restricted to, an entity's general purpose financial statements and sustainability-related financial disclosures.

green energy

Green power represents certificates that are acquired through bundled renewable electricity purchases where the retailer retires the certificates on behalf of the organization. Green power can also represent electricity that is generated and consumed onsite where the certificates are retained and retired by the organization, for example, solar or wind power.

greenhouse gases (GHG)

Gases in the atmosphere that trap heat and raise the surface temperature of the earth leading to global warming and climate change. In the European Sustainability Reporting Standards (ESRS), greenhouse gases mean the gases listed in Part 2 of Annex V of Regulation (EU) 2018/1999 of the European Parliament and of the Council (13). These gases include Carbon dioxide (CO₂), Methane (CH₄), Nitrous Oxide (N₂O), Sulphur hexafluoride (SF₆), Nitrogen trifluoride (NF₃), Hydrofluorocarbons (HFCs), and Perfluorocarbons (PFCs).

greenhouse gas (GHG) emission reduction

Decrease in the entity’s Scope 1, 2, 3 or total GHG emissions at the end of the reporting period, relative to emissions in the base year. Emission reductions might result from the following factors:

Energy efficiency
Electrification
Suppliers' decarbonization
Electricity mix decarbonization
Sustainable products development
Changes in reporting boundaries or activities, for example, outsourcing, reduced capacities, provided they are achieved within the entity's own operations and upstream and downstream value chain.

Removals and avoided emissions are not counted as emission reductions.

greenhouse gas (GHG) removal and storage

Anthropogenic removals refer to the withdrawal of GHGs from the atmosphere as a result of deliberate human activities. These removals include enhancing biological anthropogenic sinks of CO₂ and using chemical engineering to achieve long-term removal and storage. Carbon capture and storage (CCS) from industrial and energy-related sources, which alone does not remove CO₂ from the atmosphere, can remove atmospheric CO₂ if it is combined with bioenergy production, that is, Bioenergy with Carbon Capture & Storage - BECCS. Removals can be subject to reversals, which are any movement of stored GHG out of the intended storage that reenters the atmosphere. For example, if a forest that was grown to remove a specific amount of CO₂is subject to a wildfire, the emissions that are captured in the trees are reversed.

greenhouse gas (GHG) scope

The GHG protocol classifies greenhouse gasses into 3 scopes:

Scope 1: Direct emissions that are released into the atmosphere as a result of an activity that a company undertakes, such as emissions that are released during an industrial process.
Scope 2: Indirect emissions where the source activity is not directly owned by the company, for example, emissions that are released during the consumption of purchased electricity.
Scope 3: Indirect emissions that occur upstream and downstream in the value chain of a company, such as emissions that relate to the transport of raw materials and the transport of the finished product.

group certificates

Certificates are allocated at any level of a group hierarchy. The certificates are proportionally allocated to remaining kWh after location certificates are applied. By default, the classification grouping structure is used.

global warming potential (GWP)

A factor describing the radiative forcing impact, that is, the degree of harm to the atmosphere, of one unit of a GHG relative to one unit of CO₂.

grievance mechanism

Any routinized, state-based or non-state-based, judicial or non-judicial processes through which stakeholders can raise grievances and seek remedy . Examples of state-based judicial and non-judicial grievance mechanisms include courts, labor tribunals, national human rights institutions, National Contact Points under the OECD Guidelines for Multinational Enterprises, ombudsperson offices, consumer protection agencies, regulatory oversight bodies, and government-run complaints offices. Non-state-based grievance mechanisms include those administered by the undertaking, either alone or together with stakeholders , such as operational-level grievance mechanisms and collective bargaining , including the mechanisms established by collective bargaining . They also include mechanisms administered by industry associations, international organizations, civil society organizations, or multi-stakeholder groups. Operational-level grievance mechanisms are administered by the organization either alone or in collaboration with other parties and are directly accessible by the organization’s stakeholders . They allow for grievances to be identified and addressed early and directly, thereby preventing both harm and grievances from escalating. They also provide important feedback on the effectiveness of the organization’s due diligence from those who are directly affected. According to UN Guiding Principle 31, effective grievance mechanisms are legitimate, accessible, predictable, equitable, transparent, rights-compatible, and a source of continuous learning. In addition to these criteria, effective operational-level grievance mechanisms are also based on engagement and dialogue. It can be more difficult for the organization to assess the effectiveness of grievance mechanisms that it participates in compared to those it has established itself.

groundwater

All water that is below the surface of the ground in the saturation zone and in direct contact with the ground or subsoil.

H

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habitat: The place or type of site where an organism or population naturally occurs. Also used to mean the environmental attributes that are required by a particular species or its ecological niche.
habitat fragmentation: A general term describing the set of processes by which habitat loss results in the division of continuous habitats into a greater number of smaller patches of lesser total size and isolated from each other by a matrix of dissimilar habitats. Habitat fragmentation might occur through natural processes, such as forest and grassland fires, or flooding, and through human activities, such as forestry, agriculture, or urbanization).
harassment: A situation where an unwanted conduct related to a protected ground of discrimination. For example, gender under Directive 2006/54/EC of the European Parliament and of the Council, or religion or belief, disability, age, or sexual orientation under Council Directive 2000/78/EC. Harassment occurs with the purpose or effect of violating the dignity of a person, and of creating an intimidating, hostile, degrading, humiliating, or, offensive environment.
hazardous waste: Waste that displays one or more of the hazardous properties that are listed in Annex III of Directive 2008/98/EC of the European Parliament and of the Council on waste.
high climate impact sectors: Sectors that are listed in Sections A to H and Section L of Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council as defined in Commission Delegated Regulation (EU) 2022/1288.

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IFRS sustainability disclosure standards: Standards issued by the International Sustainability Standards Board (ISSB). See also International Sustainability Standards Board.
impact drivers: All the factors that cause changes in nature, anthropogenic assets, nature’s contributions to people and a good quality of life. Direct drivers of change can be both natural and anthropogenic. They have direct physical, that is, mechanical, chemical, noise, light, and so on, and behaviour-affecting impacts on nature. They include, among other things, climate change, pollution, different types of land use change, invasive alien species and zoonoses, and exploitation. Indirect impact drivers operate diffusely by altering and influencing direct drivers, by affecting their level, direction, or rate, and other indirect drivers. Interactions between indirect and direct drivers create different chains of relationship, attribution, and impacts, which might vary according to type, intensity, duration, and distance. These relationships can also lead to different types of spill-over effects. Global indirect drivers include economic, demographic, governance, technological and cultural ones. Special attention is given, among indirect drivers, to the role of institutions, both formal and informal, and impacts of the patterns of production, supply, and consumption on nature, nature’s contributions to people, and good quality of life.
impact materiality: A sustainability matter is material from an impact perspective when it pertains to the entity’s material actual or potential, positive, or negative impacts on people or the environment over the short, medium, and long term. A material sustainability matter from an impact perspective includes impacts connected with the entity’s own operations and upstream and downstream value chain, including through its products and services, and through its business relationships.
impacts: The effect an entity has or could have on the environment and people. Impacts include effects on human rights that are connected with the entity's own operations and upstream and downstream value chain, through its products and services, and through its business relationships. The impacts can be actual or potential, negative or positive, intended or unintended, and reversible or irreversible. They can arise over the short, medium, or long term. Impacts indicate the entity's contribution, negative or positive, to sustainable development.
impracticable: Applying a requirement is impracticable when an entity cannot apply it after making every reasonable effort to do so.
incident: A legal action or complaint that is registered with the entity or competent authorities through a formal process, or an instance of non-compliance identified by the entity through established procedures. Established procedures to identify instances of non-compliance can include management system audits, formal monitoring programs, or grievance mechanisms.
incineration: The controlled burning of waste at high temperature with or without energy recovery.
independent board member: Board members that exercise independent judgment free from any external influence or conflicts of interest. Independence generally means the exercise of objective, unfettered judgement. When used as the measure by which to judge the appearance of independence, or to categorize a non-executive member of the administrative, management, and supervisory bodies or their committees as independent, it means the absence of an interest, position, association or relationship which, when judged from the perspective of a reasonable and informed third party, is likely to influence unduly or cause bias in decision-making.
Indigenous Peoples: There is no single definition for Indigenous Peoples agreed on at the international level. In practice, there is convergence among international agencies on what groups can be considered Indigenous Peoples and should enjoy special protection as such. An important criteria for defining indigenous people is related to their connection to a traditional area, as defined in ILO Convention No. 169, Article 1, which states that the convention applies to: “(a) tribal peoples in independent countries whose social, cultural and economic conditions distinguish them from other sections of the national community, and whose status is regulated wholly or partially by their own customs or traditions or by special laws or regulations; (b) peoples in independent countries who are regarded as indigenous on account of their descent from the populations which inhabited the country, or a geographical region to which the country belongs, at the time of conquest or colonization or the establishment of present state boundaries and who, irrespective of their legal status, retain some or all of their own social, economic, cultural and political institutions”. ILO Convention 169 also states in Article 1(2) that: “[s]elf- identification as Indigenous or tribal shall be regarded as a fundamental criterion for determining the groups to which the provisions of this Convention apply”.
indirect greenhouse gas (GHG) emissions: GHG emissions that are a consequence of the activities of an entity but occur at sources that are owned or controlled by another entity. Indirect emissions are Scope 2 GHG emissions and scope 3 GHG emissions combined.
installation: A stationary technical unit within which one or more activities are carried out which could have an effect on emissions and pollution.
intensity ratio: A ratio that expresses GHG impact per unit of physical activity or unit of economic value.
internal carbon price: Price used by an entity to assess the financial implications of changes to investment, production and consumption patterns, and of potential technological progress and future emissions abatement costs. An entity can use internal carbon prices for a range of business applications. Two types of internal carbon prices that an entity commonly uses are: (a) a shadow price, which is a theoretical cost or notional amount that the entity does not charge but that can be used to understand the economic implications or tradeoffs for such things as risk impacts, new investments, the net present value of projects, and the cost and benefit of various initiatives; and (b) an internal tax or fee, which is a carbon price that is charged to a business activity, product line, or other business unit based on its greenhouse gas emissions (these internal taxes or fees are similar to intracompany transfer pricing).
internal carbon pricing scheme: An organizational arrangement that allows an entity to apply carbon prices in strategic and operational decision making. There are two types of internal carbon prices that are commonly used by organizations. The first type is a shadow price, which is a theoretical cost or notional amount that the entity does not charge but that can be used in assessing the economic implications or tradeoffs for such things as risk impacts, new investments, net present value of projects, and the cost-benefit of various initiatives. The second type is an internal tax or fee, which is a carbon price that is charged to a business activity, product line, or other business unit based on its GHG emissions (these internal taxes or fees are similar to intracompany transfer pricing).
invasive or alien species: Species whose introduction or spread by human action outside their natural distribution threatens biological diversity, food security, and human health and well-being. “Alien’ refers to the species’ having been introduced outside its natural distribution (“exotic’, “nonnative’ and “nonindigenous’ are synonyms for “alien’). “Invasive’ means “tending to expand into and modify ecosystems to which it has been introduced’. Thus, a species may be alien without being invasive, or, in the case of a species native to a region, it may increase and become invasive, without actually being an alien species.
International Sustainability Standards Board: A board that develops standards for a high-quality, comprehensive, global baseline of sustainability disclosures.
item: A product that has at least one characteristic that is different from all other products and which requires a unique identifier such as a stock keeping unit (SKU) or part number. The basic product of the catalog that can be used in categorization and product associations. An item is the most basic part of the catalog hierarchy.

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job: A service that is executed asynchronously on a schedule.

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Key Biodiversity Area (KBA): Sites contributing significantly to the global persistence of biodiversity ’, in terrestrial, freshwater and marine ecosystems . Sites qualify as global KBAs if they meet one or more of 11 criteria, clustered into five categories: threatened biodiversity; geographically restricted biodiversity; ecological integrity; biological processes; and, irreplaceability. The World Database of KBAs is managed by BirdLife International on behalf of the KBA Partnership.
Key performance indicator (KPI): Captures operational performance, such as production volumes, floor area, and head count. Use KPIs for intensity analysis to provide context in relation to emissions and energy data.
KPI: See Key performance indicator (KPI).

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land degradation

The many processes that drive the decline or loss in biodiversity, ecosystem functions, or their benefits to people. Land degradation includes the degradation of all terrestrial ecosystems.

land-system change

The terrestrial component of the Earth system, encompassing all processes and activities related to the human use of land. These include socioeconomic, technological, and organizational inputs and arrangements, and also the benefits gained from land and the unintended social and ecological outcomes of societal activities. The land-systems concept combines land-use, which is the activities, arrangements, and inputs that are associated with land-use, with land cover, which is the ensemble of physical characteristics of land discernible by Earth Observation.

land-use change

The human use of a specific area for a certain purpose, such as residential, agriculture, recreation, and industrial. Land-use change is influenced by, but not synonymous with, land cover. Land-use change refers to a change in the use or management of land by humans, which may lead to a change in land cover.

landfill

A waste disposal site for the deposit of the waste onto or into land.

latest international agreement on climate change

An agreement by states, as members of the United Nations Framework Convention on Climate Change, to combat climate change. The agreements set norms and targets for a reduction in greenhouse gases.

legitimate representatives

Individuals that are recognized as legitimate under law or practice, such as elected trade union representatives in the case of workers, or other similarly freely chosen representatives of affected stakeholders.

leverage

The ability of the entity to effect a change in the wrongful practices of another party that is connected with a negative sustainability-related impact.

lifecycle phase

One of three stages in the supply chain lifecycle. Specific key performance indicators apply to each.

lobbying activities

Activities carried out with the objective of influencing the formulation or implementation of policy or legislation, or the decision-making processes of governments, governmental institutions, regulators, European Union institutions, bodies, offices and agencies or standard setters. Activities include, but are not limited to, the following list:

organizing or participating in meetings, conferences, events
contributing to or participating in public consultations, hearings or other similar initiatives
organizing communication campaigns, platforms, networks, grassroots initiatives
preparing or commissioning policy and position papers, opinion polls, surveys, open letters, research work as per the activities covered by transparency register rules

location

A physical place denoted by a street address, city, country, and optionally by more granular details.

location-based reporting

Scope 2 emissions from your electricity consumption are based on the average emission intensity of the grid.

location certificates

Voluntary or unbundled certificates that are purchased for the purpose of reducing or eliminating a single location’s remaining kWh. Certificates in this category are allocated proportionally across all electricity within the location under which the certificates were captured.

locked-in GHG emissions

Estimates of future GHG emissions that are likely to be caused by an undertaking’s key assets or products that are sold within their operating lifetime.

longevity

Designed for maintenance and durability in a way that encourages longer use than the industry standard in practice and at scale and in a way that does not compromise circular treatment at the end of functional life.

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managed emission factor sets: A set of published emission factors that are available in Envizi ESG Suite that provide organizations with a set of default emission factor values that help facilitate carbon accounting calculations and organizational greenhouse gas reporting. Key sources for emission factors include Eora66 and the United States Environmental Protection Agency (US EPA). See also carbon accounting and greenhouse gases.
managed framework: The internal representation of the external reporting framework. It includes the complete set of questions that are included in the reporting framework. Guidance about how to collate responses is provided for several questions.
marine resources: Biological and nonbiological resources that are found in the seas and oceans. Examples include but are not limited to deep sea minerals, gravels, and seafood products.
market-based reporting: Scope 2 emissions calculation takes into account the emissions intensity of different energy sources. It takes into account bundled and unbundled contractual certificates that you purchased and your onsite renewables.
material information: In the context of sustainability-related financial disclosures, information is material if omitting, misstating, or obscuring that information could reasonably be expected to influence decisions that primary users of general purpose financial reports make on the basis of those reports. The financial reports include financial statements and sustainability-related financial disclosures and statements that provide information about a specific reporting entity.
material opportunities: Sustainability-related opportunities with positive financial effects that materially affect, or could reasonably be expected to affect, the entity's cash flows, access to finance, or cost of capital over the short, medium, or long term.
material risks: Sustainability-related risks with negative financial effects that materially affect, or could reasonably be expected to affect, the entity's cash flows, access to finance, or cost of capital over the short, medium or long term.
materiality: A sustainability matter is material if it meets the definition of impact materiality, financial materiality, or both. See also impact materiality and financial materiality.
metrics: Qualitative and quantitative indicators that the entity uses to measure and report on the effectiveness of the delivery of its sustainability-related policies and against its targets over time. Metrics also support the measurement of the entity's results in respect of affected people, the environment, and the entity.
microplastics: Small pieces of plastics, usually smaller than 5 mm. A growing volume of microplastics is found in the environment, including the sea, and in food and drinking water. When they are in the environment, microplastics do not biodegrade and tend to accumulate, unless they are specifically designed to biodegrade in the open environment. Biodegradability is a complex phenomenon, especially in the marine environment. There are increasing concerns about the presence of microplastics in different environment compartments, such as water, their impact on the environment and potentially human health.
minimum disclosure requirement: A minimum disclosure requirement sets the required content of the information that the entity includes when it reports on policies, actions, metrics or targets , either pursuant to a Disclosure Requirement in an ESRS or on an entity-specific basis.

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native unit

Each data type has a default or standard unit, which is known as the native unit. You can capture data in its native unit and convert it to other units.

natural resources

Natural assets or raw materials occurring in nature that can be used for economic production or consumption.

nature-based solutions

Actions to protect, conserve, restore, sustainably use, and manage natural or modified terrestrial, freshwater, coastal, and marine ecosystems. These actions address social, economic, and environmental challenges effectively and adaptively, while simultaneously providing human well-being, ecosystem services, resilience, and biodiversity benefits.

net-zero target

Setting a net-zero target at the level of an undertaking aligned with meeting societal climate goals means:

achieving a scale of value chain emissions reductions consistent with the abatement required to reach global net-zero in 1.5°C pathways and
neutralizing the impact of any residual emissions (after approximately 90-95% of GHG emission reduction with the possibility for justified sectoral variations in line with a recognized sectoral pathway) by permanently removing an equivalent volume of CO2.

non-employees

Non-employees in an entity’s own workforce include both individual contractors supplying labor to the entity, that is, self-employed people, and people provided by undertakings that are primarily engaged in employment activities (NACE Code N78).

non-renewable energy

Energy that cannot be identified as being derived from renewable sources.

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onsite renewables: Electricity consumption that originates from renewable generation assets that are owned or operated by your organization, usually solar. The consumption is not associated with any type of energy attribute certificate or the emission of any greenhouse gases. See also greenhouse gases.
operations: The second of three phases of the supply chain lifecycle, which uses metrics to understand the current workload and requirements.
operational control: Operational control over an entity, site, operation, or asset is the situation where the entity has the ability to direct the operational activities and relationships of the entity, site, operation, or asset.
opportunities: Sustainability-related opportunities with positive financial effects.
outlook: The first of three phases of the supply chain lifecycle, which uses KPIs to predict upcoming activities such as planning and expected events.
overtime: The number of hours actually worked by a worker in excess of their contractual hours of work.
own workforce or own workers: Employees who are in an employment relationship with the entity, who are known as employees, and non-employees who are either individual contractors who supply labor to the entity, that is, self-employed people, or people provided by undertakings primarily engaged in employment activities (NACE Code N78).
ozone-depleting substances: Substances listed in the Montreal Protocol on Substances that Deplete the Ozone Layer.

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packaging

Products made of any materials of any nature to be used for the containment, protection, handling, delivery, storage, transport, and presentation of goods, from raw materials to processed goods, from the producer to the user or consumer.

pay

The ordinary basic or minimum wage or salary and any other remuneration, whether in cash or in kind, which the worker receives directly or indirectly, known as complementary or variable components, in respect of their employment from their employer. Pay level means gross annual pay and the corresponding gross hourly pay. Median pay level means the pay of the employee that would have half of the employees earn more and half less than they do.

pending order

An order that could not be executed in the expected accounting period due to late order placement, lack of supplies or capacity, or other reason.

performance

The third of three phases of the supply chain lifecycle, which uses KPIs to assess past performance for corrective action.

persons with disabilities

Persons who have long-term physical, mental, intellectual, or sensory impairments, which in interaction with various barriers might hinder their full and effective participation in society on an equal basis with others.

physical risks

All global economic enterprise depends on the functioning of earth systems, such as a stable climate and on ecosystem services, such as the provision of biomass, that is, raw materials. Nature-related physical risks are a direct result of an entity's dependence on nature. Physical risks arise when natural systems are compromised due to the impact of the following events:

Climatic events that are extremes of weather such as a drought
Geologic events that are seismic events such as earthquake events
Changes in ecosystem equilibria, such as soil quality or marine ecology, which affect the ecosystem services that entities depend on.

These impacts can be acute, chronic, or both. Nature-related physical risks arise as a result of changes in the biotic, that means living, and abiotic that means non-living conditions that support healthy, functioning ecosystems. Physical risks are usually location-specific. Nature-related physical risks are often associated with climate-related physical risks.

planetary boundaries

This concept allows to estimate a safe operating space for humanity with respect to the functioning of the Earth. The boundary level for each key Earth System process that should not be transgressed if we are to avoid unacceptable global environmental change, is quantified.

PO

See purchase order.

policy

A set or framework of general objectives and management principles that the entity uses for decision-making. A policy implements the entity’s strategy or management decisions that are related to a material sustainability matter. Each policy is under the responsibility of defined persons, specifies its perimeter of application, and includes one or more objectives that are linked when applicable to measurable targets. A policy is validated and reviewed following the undertakings’ applicable governance rules. A policy is implemented through actions or action plans.

pollutant

A substance, vibration, heat, noise, light, or other contaminant present in air, water, or soil that might be harmful to human health or the environment. A pollutant might result in damage to material property, or which may impair or interfere with amenities and other legitimate uses of the environment.

pollution

The direct or indirect introduction, as a result of human activity, of pollutants into air, water, or soil which may be harmful to human health or the environment. Pollution might result in damage to material property, or which may impair or interfere with amenities and other legitimate uses of the environment.

pollution of soil

The introduction into soil, independent of whether that introduction occurs at the production site of an entity or outside or through the use of the entity’s products or services, as a result of human activity, of substances, vibrations, heat, or noise that might be harmful to human health or the environment. Pollution of soil results in damage to material property, or impair or interfere with amenities and other legitimate uses of the environment. Soil pollutants include inorganic pollutants, persistent organic pollutants (POPs), pesticides, nitrogen compounds, phosphorus compounds, and so on.

portfolio hierarchy

The portfolio or secondary hierarchy consists of portfolio groups and locations. In the secondary hierarchy, locations can belong to multiple portfolio groups. Creating portfolio group hierarchies allows you to create secondary organization structures, such as by real estate or by operations centers. You can assign a reporting percentage and effective dates to locations within portfolio groups.

primary users of general purpose financial reports or primary users

Existing and potential investors, lenders, and other creditors.

product inventory

A record defining the physical inventory of finished goods that are typically drawn from to fulfill orders.

program

A set of initiatives or projects that are designed to help an organization to meet its environmental, social, or governance targets or sustainability goals.

protected area

A clearly defined geographical space, recognized, dedicated, and managed, through legal or other effective means, to achieve the long-term conservation of nature with associated ecosystem services and cultural values.

purchase order (PO)

An authorized order to an external vendor or internal supplier.

purchased goods and services

Scope 3 category 1: Emissions from the goods and services that your purchase from suppliers.

purchased or acquired electricity, heat, steam, or cooling

When the entity has received its electricity, heat, steam, or cooling from a third party. The term acquired reflects circumstances where a company might not directly purchase electricity, such as a tenant in a building, but where the energy is brought into the entity’s facility for use.

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ratio

A metric that compares two quantities. The ratio indicates how many times one value is contained within the other value. For example, energy per square foot:

Numerator: Natural gas

Denominator: Total square feet

raw material

Primary or secondary material that is used to produce a product.

recognized quality standards for carbon credits

Quality standards for carbon credits that are verifiable by independent third parties, make requirements, and project reports publicly available and at a minimum, can ensure additionality, permanence, avoidance of double counting and provide rules for calculation, monitoring, and verification of the project’s GHG emissions and removals.

record

Captures data values for a time period for a data type, for example, captures consumption and cost data for electricity [kWh] or number of employees for headcount [people].

record in supply chains

The storage representation of a row or other data.

recordable work-related injury or ill health

Work-related injury or ill health that results in any of the following:

death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of consciousness or
significant injury or ill health diagnosed by a physician or other licensed healthcare professional, even if it does not result in death, days away from work, restricted work or job transfer, medical treatment beyond first aid, or loss of consciousness.

recovery

Any operation the principal result of which is waste serving a useful purpose by replacing other materials that would otherwise have been used to fulfill a particular function, or waste being prepared to fulfill that function, in the plant or in the wider economy.

recycling

Any recovery operation by which waste materials are reprocessed into products, materials, or substances whether for the original or other purposes. Recycling includes the reprocessing of organic material, but does not include energy recovery and the reprocessing into materials that are to be used as fuels or for backfilling operations.

region

A physical location (site or data center) hosting infrastructure isolated from other locations, with independent power and networking connectivity. A region may or may not have further sub-isolation characteristics such as semi-independent pods or availability zones.

remedy or remediation

To counteract or make good a negative impact. Examples include apologies, financial or non-financial compensation, prevention of harm through injunctions or guarantees of non-repetition, punitive sanctions, whether criminal or administrative, such as fines, restitution, restoration, rehabilitation.

renewable energy

Energy from renewable non-fossil sources namely wind, solar, that is, solar thermal and solar photovoltaic, and geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas.

renewable materials

Materials that are derived from resources that are quickly replenished by ecological cycles or agricultural processes, so that the services provided by these and other linked resources are not endangered and remain available for the next generation.

reporting entity or entity

An entity that is required, or chooses, to prepare general purpose financial statements.

reporting framework

A set of standards or guidelines that are provided by business groups, governments, or nonprofit organizations to help companies report and manage their ESG performance. Each framework typically sets the quantitative and qualitative elements that a company should disclose, the format of the reporting, and the frequency of reporting.

resource inflows

Resources that enter the entity’s facilities.

resource outflows

Resources that leave the entity’s facilities.

resource regeneration

Promotion of self-renewal capacity of natural systems with the aim of reactivating ecological processes that are damaged or over-exploited by human action.

resource use optimization

The design, production, and distribution of materials and products with the objective to keep them in use at their highest value. Eco-design and design for longevity, repair, reuse, repurposing, disassembly, and re-manufacturing are examples of tools to optimize resource use.

reuse

Any operation by which products and components that are not waste are used again for the same purpose for which they were conceived. This might involve cleaning or small adjustments so that the product or component is ready for the next use without significant modification.

revoke

To remove a privilege or an authority from an authorization identifier.

risks

Sustainability-related risks with negative financial effects arising from environmental, social, or governance matters that may negatively affect the entity's financial position, financial performance, cash flows, access to finance or cost of capital in the short, medium, or long term.

river basin

The area of land from which all surface run-off flows through a sequence of streams, rivers and, possibly, lakes into the sea at a single river mouth, estuary, or delta.

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sales order

A record that authorizes the sale of products or services or both to an end customer and that includes a fulfillment date for the order.

sales shipment

A record of the shipment of a product from a business to a customer to fulfill a sales order.

scenario

A plausible description of how the future might develop based on a coherent and internally consistent set of assumptions about key driving forces, such as the rate of technological change, prices, and relationships. Note that scenarios are neither predictions nor forecasts but are used to provide a view of the implications of developments and actions.

scenario analysis

A process for identifying and assessing a potential range of outcomes of future events under conditions of uncertainty.

shelf life

The period of time during which an item is usable for manufacturing a product.

Scope 1 GHG emissions

Direct GHG emissions from sources that are owned or controlled by the entity.

Scope 2 GHG emissions

Indirect emissions from the generation of purchased or acquired electricity, steam, heat, or cooling consumed by the entity.

Scope 3 category

One of the 15 types of Scope 3 GHG emissions that are identified by the GHG Protocol Corporate Standard and detailed by the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (adapted from GHG Protocol Corporate Value Chain ( Scope 3) Accounting and Reporting Standard, Glossary (Version 2011). Undertakings that choose to account for their Scope 3 emissions based on the indirect GHG emissions categories of ISO 14064-1:2018 might also refer to the category defined in clause 5.2.4, excluding indirect GHG emissions from imported energy, of ISO 14064-1:2018.

Scope 3 GHG emissions

All indirect GHG emissions, not included in scope 2 GHG emissions, that occur in the value chain of the reporting entity, including both upstream and downstream emissions. Scope 3 GHG emissions can be broken down into scope 3 categories.

sensitive information

Sensitive information as defined in Regulation (EU) 2021/697 of the European Parliament and of the Council establishing the European Defence Fund.

site

The location of one or more physical installations. If there is more than one physical installation from the same or different owners or operators and certain infrastructure and facilities are shared, the entire area where the physical installation is located may constitute a site.

social dialog

All types of negotiation, consultation, or simply exchange of information between, or among, representatives of governments, employers, their organizations and workers’ representatives, on issues of common interest relating to economic and social policy. It can exist as a tripartite process, with the government as an official party to the dialog or it might consist of bipartite relations only between workers' representatives and management or trade unions and employers' organizations.

social protection

The set of measures designed to reduce and prevent poverty and vulnerability across the life cycle.

soil

The top layer of the Earth’s crust that is situated between the bedrock and the surface. The soil is composed of mineral particles, organic matter, water, air, and living organisms.

soil degradation

The diminishing capacity of the soil to provide ecosystem goods and services as desired by its stakeholders.

soil sealing

Covering soil in a way that makes the covered area impermeable, such as a road. This non-permeability can create environmental impacts as described in Commission Regulation (EU) 2018/2026.

specific loads

Mass of pollutant released per mass of product manufactured. Specific loads allow for the comparison of the environmental performance of installations irrespective of their different production volumes and are not influenced by mixing or dilution.

stakeholder engagement

An ongoing process of interaction and dialog between the entity and its stakeholders that enable the entity to hear, understand and respond to their interests and concerns.

stakeholders

Those who can affect or be affected by the undertaking. There are two main groups of stakeholders:

Affected stakeholders : individuals or groups whose interests are affected or could be affected – positively or negatively – by the undertaking’s activities and its direct and indirect business relationships across its value chain and
users of sustainability statements : primary users of general purpose financial reporting (existing and potential investors, lenders and other creditors including asset managers, credit institutions, insurance undertakings), as well as other users , including the undertaking’s business partners, trade unions and social partners, civil society and non-governmental organizations, governments, analysts and academics.
Some, but not all, stakeholders may belong to the two groups.

substances

Any chemical element and its compounds, with the exception of the following substances:

radioactive substances as defined in Article 1 of Council Directive 96/29/Euratom laying down basic safety standards for the protection of the health of workers and the general public against the dangers arising from ionizing radiation
genetically modified micro-organisms as defined in Article 2(b) of Directive 2009/41/EC of the European Parliament and the Council on the contained use of genetically modified micro-organisms
genetically modified organisms as defined in point 2 of Article 2 of Directive 2001/18/EC of the European Parliament and of the Council on the deliberate release into the environment of genetically modified organisms.

substances of concern

A substance that

meets the criteria laid down in Article 57 and is identified in accordance with Article 59(1) of Regulation (EC) No 1907/2006 of the European Parliament and of the Council
is classified in Part 3 of Annex VI to Regulation (EC) No 1272/2008 of the European Parliament and of the Council ( 36 ) in one of the following hazard classes or hazard categories
carcinogenicity categories 1 and 2
germ cell mutagenicity categories 1 and 2
reproductive toxicity categories 1 and 2
endocrine disruption for human health
Persistent, Mobile and Toxic or Very Persistent, Very Mobile properties
Persistent, Bioaccumulative and Toxic or Very Persistent, Very Bioaccumulative properties
respiratory sensitization category 1
skin sensitization category 1;
chronic hazard to the aquatic environment categories 1 to 4
hazardous to the ozone layer
specific target organ toxicity, repeated exposure categories 1 and 2
specific target organ toxicity, single exposure categories 1 and 2
negatively affects the re-use and recycling of materials in the product in which it is present, as defined in relevant Union product-specific ecodesign requirements.

Substances of Very High Concern (SVHCs)

Substances that meet the criteria that are laid down in Article 57 of Regulation (EC) No 1907/2006 (REACH) and were identified in accordance with Article 59(1) of that Regulation.

supplier

Entity upstream from the organization, that is, in the entity’s supply chain, which provides a product or service that is used in the development of the undertaking's own products or services. A supplier can have a direct business relationship with the entity, often referred to as a first-tier supplier, or an indirect business relationship.

supply chain

The full range of activities or processes carried out by entities upstream from the undertaking, which provide products or services that are used in the development and production of the entity’s own products or services. This includes upstream entities with which the undertaking has a direct relationship, often referred to as a first-tier supplier, and entities with which the undertaking has an indirect business relationship.

supply shipment

A record of the shipment of materials or parts used to satisfy a supply order.

surface water

Inland waters, except groundwater, transitional waters, and coastal waters, except in respect of chemical status for which it shall also include territorial water.

sustainability matters

Environmental, social, and human rights, and governance factors, including sustainability factors defined in Article 2, point (24), of Regulation (EU) 2019/2088 of the European Parliament and of the Council.

sustainability statement

The dedicated section of the undertaking's management report where the information about sustainability matters prepared in compliance with Directive 2013/34/EU of the European Parliament and of the Council and the ESRS is presented.

sustainability-related financial disclosures

A particular form of general purpose financial reports that provide information about the reporting entity's sustainability-related risks and opportunities that could reasonably be expected to affect the entity's cash flows, its access to finance or cost of capital over the short, medium or long term. The disclosure includes information about the entity's governance, strategy, and risk management in relation to those risks and opportunities, and related metrics and targets.

sustainability-related impacts

The effect the undertaking has or could have on the environment and people, including effects on their human rights, as a result of the entity's activities or business relationships. The impacts can be actual or potential, negative, or positive, short-term, medium, or long-term, intended, or unintended, and reversible or irreversible. Impacts indicate the entity's contribution, negative or positive, to sustainable development.

sustainability-related opportunities

Uncertain environmental, social, or governance events or conditions that, if they occur, could cause a potential material positive effect on the entity's business model, or strategy on its capability to achieve its goals and targets and to create value, and therefore may influence its decisions and those of its business relationship partners with regard to sustainability matters. Like any other opportunity, sustainability-related opportunities are measured as a combination of an impact’s magnitude and the probability of occurrence.

sustainability-related risks

Uncertain environmental, social, or governance events or conditions that, if they occur, could cause a potential material negative effect on the entity's business model or strategy and on its capability to achieve its goals and targets and to create value, and therefore might influence its decisions and those of its business relationships with regard to sustainability matters. Like any other risks, sustainability- related risks are the combination of an impact’s magnitude and the probability of occurrence.

systemic risks

Risks arising from the breakdown of the entire system, rather than the failure of individual parts. They are characterized by modest tipping points combining indirectly to produce large failures with cascading of interactions of physical and transition risks (contagion), as one loss triggers a chain of others, and with systems unable to recover equilibrium after a shock. An example is the loss of a keystone species, such as sea otters, which have a critical role in ecosystem community structure. When sea otters were hunted to near extinction in the 1900s, the coastal ecosystems flipped and biomass production was greatly reduced.

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tag hierarchy

Envizi ESG Suite cuts across hierarchies with tags. Tagging allows you to group account data for specific reporting needs. You can apply tags to accounts and set both reporting percentages and effective dates to control how and when data gets reported. For example, the Use of building tag type has three tags:

Base building
Tenant
Whole Building

The tags can be applied to any accounts, regardless of the location that the account belongs to.

targets

Measurable, outcome-oriented, and time-bound goals that the entity aims to achieve in relation to material impacts, risks, or opportunities. They might be set voluntarily by the entity or derive from legal requirements on the entity.

threatened species

Endangered species, including flora and fauna, which are listed in the European Red List or the IUCN Red List, as referred to in Section 7 of Annex II to Commission Delegated Regulation (EU) 2021/2139.

threshold

A predefined value per metric that is used to compare data points.

training

Initiatives that are put in place by the entity aimed at the maintenance or improvement of skills and knowledge of its own workers. It can include different methodologies, such as onsite training, and online training.

transactional data

Data that describes an event and is frequently subject to change, such as demands, procurements, production orders, and firm information.

transition plan

A specific type of action plan that is adopted by the undertaking in relation to a strategic decision and that addresses:

a public policy objective and/or
an entity-specific action plan organized as a structured set of targets and actions , associated with a key strategic decision, a major change in business model , and/or particularly important actions and allocated resources.

transition plan for climate change mitigation

An aspect of an entity's overall strategy that lays out the entity's targets, actions, and resources for its transition toward a lower--carbon economy, including actions such as reducing its GHG emissions with regard to the objective of limiting global warming to 1.5°C and climate neutrality.

transition risks

Risks that result from a misalignment between an entity's or investor’s strategy and management and the changing regulatory, policy, or societal landscape in which it operates. Developments that are aimed at halting or reversing damage to the climate or to nature, such as government measures, technological breakthroughs, market changes, litigation, and changing consumer preferences can all create or change transition risks.

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Users: Users of sustainability statements are primary users of general-purpose financial reporting such as existing and potential investors, lenders, and other creditors including asset managers, credit institutions, insurance undertakings, and other users, including the undertaking’s business partners, trade unions, and social partners, civil society and non-governmental organizations, governments, analysts, and academics.

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value chain: The full range of interactions, resources, and relationships that are related to a reporting entity's business model and the external environment in which it operates. A value chain encompasses the interactions, resources, and relationships an entity uses and depends on to create its products or services from conception to delivery, consumption, and end-of-life. A value chain includes interactions, resources, and relationships in the entity's operations, such as human resources, those along its supply, marketing, and distribution channels, such as materials and service sourcing, and product and service sale and delivery. A value chain also includes the financing, geographical, geopolitical, and regulatory environments in which the entity operates.
value chain worker: An individual performing work in the value chain of the entity, regardless of the existence or nature of any contractual relationship with the entity. In the ESRS, the scopes of workers in the value chain include all workers in the entity's upstream and downstream value chain who are or can be materially impacted by the entity. This includes impacts that are connected to the entity’s own operations, and value chain, including through its products or services, and through its business relationships. This includes all workers who are not in the scope of ‘Own Workforce’ that includes people who are in an employment relationship with the entity, known as employees, and nonemployees who are either individual contractors supplying labor to the entity, which are known as self-employed people, or people provided by undertakings primarily engaged in employment activities. (NACE Code N78)
virtual accounts: Accounts whose data is automatically derived from the monthly data of other accounts, meters, or static attribute values. Use virtual data rules to populate source data into virtual accounts.
virtual data rule: Defines how source data populates measures in a virtual data account.

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wage

Gross wage, excluding variable components, such as overtime and incentive pay, and excluding allowances unless they are guaranteed.

waste

Any substance or object that the holder discards or intends or is required to discard.

waste hierarchy

waste management

The collection, transport, recovery, and disposal of waste, including the supervision of such operations and the after-care of disposal sites, and including actions taken as a dealer or broker.

wastewater

Priority order in waste prevention and management:

prevention
preparing for re-use
recycling
other recovery, for example, energy recovery and
disposal

water that is recycled and reused

Water and wastewater that is treated or untreated, that has been used more than once before being discharged from the undertaking's or shared facilities’ boundary, so that water demand is reduced. This might be in the same process, that is, recycled, or in a different process within the same facility, that is, owned or shared with other undertakings, or in another of the entity's facilities, that is, reused.

water consumption

The amount of water that is drawn into the boundaries of the undertaking or facility and not discharged back to the water environment or a third party over the course of the reporting period.

water discharge

The sum of effluents and other water that leaves the boundaries of the entity and released to surface water, groundwater, or third parties, over the course of the reporting period.

water intensity

A metric providing the relationship between a volumetric aspect of water and a unit of activity, such as products and sales, are created.

water scarcity

The volumetric abundance, or lack thereof, of freshwater resources. Scarcity is human driven, and is a function of the volume of human water consumption relative to the volume of water resources in a given area. As such, an arid region with very little water, but no human water consumption would not be considered scarce, but rather arid. Water scarcity is a physical, objective reality that can be measured consistently across regions and over time. Water scarcity reflects the physical abundance of freshwater rather than whether that water is suitable for use. For instance, a region may have abundant water resources, and thus not be considered water scarce, but have such severe pollution that those supplies are unfit for human or ecological uses.

water withdrawal

The sum of all water that is drawn into the boundaries of the entity from all sources for any use over the course of the reporting period.

widget

A reusable user interface component such as a button, scroll bar, control area, or text edit area, that can receive input from the keyboard or mouse and can communicate with an application or with another widget.

workers’ representatives

Workers' representatives means:

trade union representatives, namely representatives designated or elected by trade unions or by members of such unions in accordance with national legislation and practice
duly elected representatives, namely representatives who are freely elected by the workers of the organization, not under the domination or control of the employer in accordance with provisions of national laws or regulations or of collective agreements and whose functions do not include activities which are the exclusive prerogative of trade unions in the country concerned and which existence is not used to undermine the position of the trade unions concerned or their representatives.

work-life balance

A satisfactory state of equilibrium between an individual’s work and private life. Work-life balance in a broader sense encompasses not only the balance between work and private life given family or care responsibilities, but also time allocation between time spent at work and in private life beyond family responsibilities.

work-related hazards

Work-related hazards can be

physical, for example, radiation, temperature extremes, constant loud noise, spills on floors or tripping hazards, unguarded machinery, or faulty electrical equipment
ergonomic, such as improperly adjusted workstations and chairs, awkward movements, or vibration
chemical, such as exposure to carcinogens, mutagens, reprotoxic substances , solvents, carbon monoxide, or pesticides
biological, such as exposure to blood and bodily fluids, fungi, bacteria, viruses, or insect bites
psycho-social, such as verbal abuse, harassment, or bullying
related to work-organization, such as excessive workload demands, shift work, long hours, night work, or workplace violence

work-related incident

Occurrence arising out of or in the course of work that could or does result in injury or ill health. Incidents might be due to, for example, electrical problems, explosion, fire, overflow, overturning, leakage, flow, breakage, bursting, splitting, loss of control, slipping, stumbling and falling, body movement without stress, body movement under/with stress, shock, fright, workplace violence or harassment, such as sexual harassment.

An incident that results in injury or ill health is often referred to as an accident. An incident that has the potential to result in injury or ill health but where none occurs is often referred to as a close call, near-miss, or near-hit.

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