Sustainability Reporting and Corporate Disclosure.
Expert-defined terms from the Graduate Certificate in Finance and Sustainability course at London School of International Business. Free to read, free to share, paired with a globally recognised certification pathway.
**Assurance** #
**Assurance**
Assurance is the examination and expression of independent opinion regarding the… #
Assurance includes an assessment of the following aspects:
* The accuracy and completeness of the reported information #
* The accuracy and completeness of the reported information
* The reliability and neutrality of the reported data #
* The reliability and neutrality of the reported data
* The compliance of the report with established standards and frameworks #
* The compliance of the report with established standards and frameworks
**Carbon Disclosure Project (CDP)** #
**Carbon Disclosure Project (CDP)**
The Carbon Disclosure Project (CDP) is a non #
profit organization that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts. CDP collects information regarding greenhouse gas emissions, water usage, and deforestation, and provides a platform for organizations to disclose this information to stakeholders.
**Corporate Disclosure** #
**Corporate Disclosure**
Corporate disclosure is the process by which organizations communicate informati… #
This information is typically made available through annual reports, sustainability reports, financial statements, and regulatory filings.
**Corporate Social Responsibility (CSR)** #
**Corporate Social Responsibility (CSR)**
Corporate Social Responsibility (CSR) is the ethical and transparent behavior of… #
CSR involves a commitment to managing the social, environmental, and economic impacts of a business in a responsible and sustainable manner.
**Dow Jones Sustainability Index (DJSI)** #
**Dow Jones Sustainability Index (DJSI)**
The Dow Jones Sustainability Index (DJSI) is a global index that tracks the perf… #
The index is based on an assessment of companies' economic, environmental, and social performance, and is used as a benchmark for investors seeking to invest in companies that are committed to sustainable practices.
**Environmental, Social, and Governance (ESG)** #
**Environmental, Social, and Governance (ESG)**
Environmental, Social, and Governance (ESG) refers to the three key factors used… #
ESG considers the following aspects:
* Environmental #
The impact of a company's operations on the natural environment
* Social #
The impact of a company's operations on society, including employees, customers, and communities
* Governance #
The systems and processes in place to ensure that a company is managed in a responsible and ethical manner
**Global Reporting Initiative (GRI)** #
**Global Reporting Initiative (GRI)**
The Global Reporting Initiative (GRI) is an international organization that prov… #
GRI's sustainability reporting standards are widely used by organizations around the world to report on their sustainability performance and impacts.
**Greenhouse Gas (GHG)** #
**Greenhouse Gas (GHG)**
Greenhouse gases (GHG) are gases that trap heat in the Earth's atmosphere, leadi… #
The main greenhouse gases are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases.
**Integrated Reporting** #
**Integrated Reporting**
Integrated reporting is a reporting approach that combines financial and sustain… #
The aim of integrated reporting is to provide stakeholders with a comprehensive understanding of an organization's performance, including both financial and non-financial factors.
**Materiality** #
**Materiality**
Materiality is the concept that certain information is important and relevant to… #
In sustainability reporting, materiality refers to the process of identifying and reporting on the sustainability issues that are most significant to an organization and its stakeholders.
**SASB (Sustainability Accounting Standards Board)** #
**SASB (Sustainability Accounting Standards Board)**
The Sustainability Accounting Standards Board (SASB) is a non #
profit organization that provides sustainability accounting standards for companies in various industries. SASB's standards are designed to help companies communicate their sustainability performance to investors and other stakeholders.
**S carbon pricing** #
**S carbon pricing**
Carbon pricing is a market #
based approach to reducing greenhouse gas emissions. Carbon pricing involves setting a price on carbon emissions, either through a carbon tax or a cap-and-trade system.
**Stakeholder Engagement** #
**Stakeholder Engagement**
Stakeholder engagement is the process of communicating and interacting with an o… #
Stakeholder engagement is an important aspect of sustainability reporting, as it helps organizations understand the needs and expectations of their stakeholders and respond to them in a responsible and transparent manner.
**Sustainability** #
**Sustainability**
Sustainability is the ability of an organization to manage its social, environme… #
Sustainability involves considering the long-term impacts of an organization's activities on society, the environment, and the economy, and taking action to minimize negative impacts and maximize positive ones.
**Sustainability Reporting** #
**Sustainability Reporting**
Sustainability reporting is the process of communicating an organization's susta… #
Sustainability reporting typically includes information about an organization's environmental, social, and governance (ESG) performance, and is used to demonstrate an organization's commitment to sustainability.
**Task Force on Climate #
related Financial Disclosures (TCFD)**
The Task Force on Climate #
related Financial Disclosures (TCFD) is a global initiative established by the Financial Stability Board (FSB) to improve and standardize the reporting of climate-related financial risks and opportunities. The TCFD provides recommendations for organizations to disclose climate-related information in their financial filings, including their governance, strategy, risk management, and metrics and targets.
**Triple Bottom Line** #
**Triple Bottom Line**
The triple bottom line is a framework for measuring an organization's sustainabi… #
The triple bottom line considers the following aspects:
* Economic #
The financial performance of an organization
* Environmental #
The impact of an organization's operations on the natural environment
* Social #
The impact of an organization's operations on society, including employees, customers, and communities
**United Nations Global Compact (UNGC)** #
**United Nations Global Compact (UNGC)**
The United Nations Global Compact (UNGC) is a voluntary initiative for businesse… #
The UNGC is a network of businesses, governments, civil society organizations, and UN agencies working together to promote sustainable development and corporate responsibility.
**Water Footprint** #
**Water Footprint**
Water footprint is a measure of the amount of water used to produce goods and se… #
The water footprint includes both direct and indirect water use, and is used to assess the sustainability of an organization's water use.
**Zero Waste** #
**Zero Waste**
Zero waste is a goal to eliminate waste and maximize the reuse and recycling of… #
Zero waste involves designing products and processes to reduce waste, reuse materials, and recycle