The definitions provided in this glossary are for general informational purposes only and do not constitute legal definitions. They are simplified explanations intended to help users understand common legal terms in everyday language.
This glossary is not a substitute for legal advice, formal legal definitions or consultation with a qualified legal professional. Legal terms may have different meanings depending on the context, jurisdiction or applicable laws. For official interpretations, please refer to the relevant statutes, legal texts or consult us.
A
Accessibility – Designing services and environments so they can be used by everyone, including people with disabilities.
Adaptation – Actions taken to adjust to current or expected climate impacts, such as building flood defences or planting drought-resistant crops.
Affordable Housing – Housing that costs a reasonable portion of people’s income.
Afforestation – Planting trees in areas that were not previously forested to restore ecosystems and improve air and water quality.
Anti-Bribery and Anti-Corruption (ABC) Policies – Policies that prevent bribery and unethical behaviour in business.
Asset Management – How a company manages its investments and resources responsibly, including ESG risks.
Audit Committee – A group within a company’s board that oversees financial reporting and compliance.
B
Biodiversity – The variety of life forms in an ecosystem, like plants, animals and microorganisms.
Board of Directors – A group that governs and oversees a company’s decisions and strategy.
Bribery – Giving or receiving something of value to influence decisions unfairly.
Business Ethics – The principles guiding how a company acts responsibly and fairly.
C
Carbon Accounting – Tracking how much carbon dioxide and other greenhouse gases a company produces.
Carbon Credit – A permit to emit a certain amount of carbon dioxide, which can be bought or sold.
Carbon Footprint – The total greenhouse gas emissions caused by an individual, company or product.
Carbon Neutral – Balancing the amount of carbon emitted with the amount removed or offset.
Carbon Offset – Paying for projects that reduce emissions to balance out your own.
Carrying Capacity – The maximum number of organisms or activities an environment can support without degradation.
Circular Economy – A system where products and materials are reused or recycled instead of thrown away.
Child Labour – The use of children in work that is illegal or harmful.
Clean Production – Making goods in ways that reduce pollution and use energy and materials efficiently.
Climate Change – Long-term changes in temperature and weather patterns, mostly due to human activity.
Climate Disclosure – A company’s report on how climate risks affect its operations and strategy.
Climate Mainstreaming – Integrating climate change considerations into all planning, policies and decision-making processes across sectors and levels of government or organisations.
Code of Conduct – A company’s written rules for employee behaviour and ethical standards.
Community Engagement – A company’s efforts to work with and support local communities.
Compliance – Following laws, regulations and internal company policies.
Conflict of Interest – A situation where personal interests could interfere with job responsibilities.
Corporate Governance – The system of rules and processes by which a company is managed and controlled.
Corporate Social Responsibility (CSR) – A business’s efforts to have a positive impact on its society and environment.
Cultural Sensitivity – Respecting different cultural practices and beliefs.
Customer Privacy – The right of customers to control how their personal data is collected and used.
D
Data Governance – How a company manages and protects its data.
Decarbonisation – Reducing carbon emissions, especially from energy and industry.
Deforestation – The clearing of forests that often harms the environment and biodiversity.
Diversity & Inclusion (D&I) – Making sure people of all backgrounds feel welcome and represented.
Diversity on Boards – Having people of different backgrounds and experiences in leadership.
Disclosure – Sharing relevant information about a company’s operations, especially ESG issues.
E
Ecological Footprint – The amount of natural resources a person or company uses.
Ecosystem Integrity – Maintaining the natural balance, structure and functions of ecosystems.
Ecosystem Services – The benefits nature provides, like clean air, water and pollination.
Emission Scopes (1, 2 and 3) – Categories of emissions:
scope 1: direct emissions from a company’s activities;
scope 2: indirect emissions from energy use; and,
scope 3: all other indirect emissions, like supply chain or product use.
Employee Engagement – How connected and motivated employees are at work.
Employee Rights – Legal and ethical protections for workers.
Energy Efficiency – Using less energy to do the same job.
Environmental Education – Teaching people about the environment to promote sustainable behaviour and decision-making.
Environmental Impact Assessment (EIA) – A study to predict how a project may affect the environment.
Environmental Justice – Ensuring all people have equal access to a healthy environment, regardless of background or income.
Environmental Management System (EMS) – A company’s plan to manage and reduce its environmental impact.
Environmental Sustainability – Using resources responsibly so that future generations are not harmed.
ESG Reporting – A company’s disclosure of its environmental, social and governance performance.
Ethical Investment – Choosing investments based on social and environmental responsibility.
Executive Compensation – The salary and bonuses paid to a company’s top leaders.
F
Fair Trade – A system ensuring producers in developing countries get fair prices and good working conditions.
Fiduciary Duty – The legal obligation to act in someone else’s best interests, like shareholders.
Forced Labour – Work done under threat or pressure, often illegal and exploitative.
Fraud Risk Management – Preventing dishonest behaviour that could harm a company or stakeholders.
G
Gender Equality – Equal treatment and opportunities regardless of gender.
GHG (Greenhouse Gas) – Gases that trap heat in Earth’s atmosphere, like carbon dioxide and methane.
Governance Structure – The way a company’s leadership and decision-making are organised.
Green Bonds – Loans or investments used to fund environmental projects.
Green Building – Construction that saves energy and reduces environmental harm.
Greenwashing – Making something appear more environmentally friendly than it is.
Grievance Mechanism – A way for people to report problems or concerns, like workplace issues or human rights violations.
H
Habitat Loss – The destruction of natural homes for animals and plants.
Health and Safety – Measures to keep workers safe and healthy on the job.
Human Rights – The basic freedoms and protections that belong to every person.
I
Indigenous Rights – Legal and cultural protections for indigenous peoples.
Intergenerational Equity – Managing the environment so that future generations can enjoy the same natural resources we do today.
Internal Controls – Processes that protect a company from risks, fraud and errors.
ISO 14001 – A global standard for environmental management systems.
Impact Investing – Investing in companies or projects that aim to do social or environmental good while making a profit.
L
Labour Practices – A company’s policies on hiring, wages, working conditions and rights.
Living Wage – A wage that allows a person to afford basic needs like food, housing and healthcare.
M
Materiality – The importance of certain ESG issues to a company’s operations or investors.
Mitigation – Efforts to reduce or prevent greenhouse gas emissions, such as using renewable energy or improving energy efficiency.
Modern Slavery – Illegal practices like forced labour, human trafficking or debt bondage.
N
Net Zero – When a company or country balances the greenhouse gases it emits with what it removes from the atmosphere.
Non-Financial Reporting – Reporting on things that are not financial, like environmental impact or social policies.
O
Occupational Safety – Protecting employees from injury or illness at work.
Offsetting – Paying to reduce emissions elsewhere to compensate for your emissions.
P
Personal Data Protection – Ensuring individuals’ private information is secure.
Polluter Pays Principle – Making those who cause pollution responsible for the cost of managing it.
Pollution Prevention – Avoiding or reducing pollution before it is created.
Precautionary Principle – Taking preventive action to avoid environmental harm, even if some cause-and-effect relationships are not fully established scientifically.
Prevention Principle – Taking action to avoid environmental damage before it happens, rather than dealing with the consequences afterwards.
Privacy Rights – A person’s right to control their personal information.
Product Responsibility – Making sure products are safe, ethical and do not harm people or the environment.
Proxy Voting – When shareholders vote on company matters through someone else.
Public Participation – Ensuring that individuals and communities can contribute to environmental decision-making processes.
R
Recycling – Turning waste into usable materials instead of throwing it away.
Renewable Energy – Energy from sources that naturally renew, like wind, solar and water.
Resilience – The ability of people, communities or systems to withstand and recover from environmental, social or economic shocks, like natural disasters or climate change.
Resource Efficiency – Using materials and energy in a way that wastes less.
Responsible Sourcing – Buying materials in ways that are ethical and environmentally friendly.
Restoration – Returning degraded or damaged ecosystems to their natural state.
Risk Management – Identifying and minimising threats to a company’s goals or operations.
S
Shareholder Rights – Legal rights that give shareholders power in how a company is run.
Social Impact – The effect a company’s actions have on people and communities.
Social License to Operate – A company’s acceptance by the community and stakeholders where it operates.
Stakeholder Engagement – Talking to and working with people who are affected by or interested in the company’s actions.
Supply Chain Transparency – Knowing and showing how and where a product is made.
Sustainable Agriculture – Farming that protects the environment and supports long-term food production.
Sustainable Development – Meeting today’s needs without compromising the ability of future generations to meet theirs.
Sustainability Report – A company’s public report on how it addresses ESG issues.
Sustainable Sourcing – Getting products or materials in a way that is ethical and environmentally responsible.
T
TCFD (Task Force on Climate-Related Financial Disclosures) – A framework that guides companies in voluntarily disclosing information about how climate-related risks and opportunities could financially impact their business, helping investors and other stakeholders make more informed decisions.
Transparency – Being open and honest about business practices and performance.
Triple Bottom Line – A way of measuring success based on people, planet and profit.
Trust and Ethics – Building confidence in a company through honest and fair behaviour.
U
UN Millennium Development Goals (MDGs) – A collection of 8 international development goals established by the United Nations in 2000, aimed at addressing global challenges with a target achievement date of 2015. They were succeeded by the Sustainable Development Goals (SDGs).
UN Sustainable Development Goals (SDGs) – A collection of 17 interconnected global goals adopted by all United Nations member states in 2015, serving as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.
Use of Best Available Technology – Applying the most effective and advanced technologies to reduce environmental harm.
W
Waste Minimisation – Reducing the amount of waste generated through efficient production and consumption practices.
Water Stress – When water demand exceeds supply in a region.
Whistleblower Protection – Safeguards for employees who report illegal or unethical behaviour.
Workforce Development – Programs that help workers improve their skills and careers.
Workplace Diversity – Having employees from a variety of backgrounds and experiences.