Sustainability terms defined

Companies around the globe are embracing sustainability and corporate social responsibility. This growing subject area has a vocabulary of its own. What do all these different but related terms mean? This cheat sheet helps define some key terms in the sustainability space.

What is a sustainability report? What is an integrated report? Glossary of terms

In simplest terms, a sustainability report According to the International Integrated ESG: Stands for provides details about an organization’s Reporting Council (IIRC), “an integrated environmental, social and environmental, social and governance report is a concise communication about governance — The terms sustainability, ESG, corporate performance. how an organization’s strategy, governance, responsibility (CR), corporate performance and prospects, in the context of social responsibility (CSR) Sustainability reporting is embraced by a its external environment, lead to the creation of and triple bottom line often growing number of companies interested value over the short, medium and long term.” are used interchangeably. in meeting growing stakeholder demand The IIRC notes that while an integrated report is GHG reporting: Greenhouse for information about the impact that the primarily intended for financial capital providers, gas (GHG) reporting organization’s activities have in these areas and it benefits all stakeholders. It may be prepared communicates information about an organization’s GHG how that impact is being addressed. In fact, as a separate report or appear prominently emissions. over 80% of S&P 500 Index companies publish within another report or communication. a sustainability report. Integrated reporting covers a broad base of Triple bottom line (TBL or 3BL): A reporting capitals: financial; manufactured; intellectual; Sustainability reporting forms an intrinsic framework that incorporates human; social and relationship; and natural element of integrated reporting. three elements of capital. performance: social, environmental and financial. The TBL elements are also Select organizations within the sustainability landscape referred to as the three P’s: people, planet and profits. B Corp: A B Corp is a for- GRI – Global Reporting Initiative — is an TCFD – Task Force on Climate-Related profit entity whose business independent international organization that has Financial Disclosures — The Financial model is intentionally pioneered sustainability reporting since 1997. Stability Board’s Task Force on Climate-related designed to create a positive The GRI Sustainability Reporting Standards Financial Disclosures (TCFD) has developed social or environmental impact. B Corps are voluntary, consistent climate-related financial (GRI Standards) are the first and most widely required to publish a public adopted global standards for sustainability risk disclosures for use by companies in report on their social and reporting. providing information to investors, lenders, environmental performance. insurers and other stakeholders. See the TCFD Benefit Corp: A Benefit SASB – Sustainability Accounting Standards recommendations. Corp is a form of legal entity Board — The SASB was established in like an LLC or a C Corp. In 2011, as an independent, private-sector World Business Council for Sustainable these entities, boards are standards-setting organization. The SASB Development — WBCSD is a global, CEO-led required to consider the develops and maintains sustainability organization of over 200 leading businesses impact of their decisions on all stakeholders, not only accounting standards – for 79 industries in working together to accelerate the transition their shareholders. Benefit 11 sectors — that help public corporations to a sustainable world. Member companies Corps are also required to disclose financially material information to come from all business sectors and all major publish an annual benefit investors. economies, representing a combined revenue of report regarding their overall more than US$8.5 trillion with social and environmental performance. 19 million employees.

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