Glossary of terms
This glossary provides concise definitions of key acronyms used in sustainability reporting and compliance, offering a quick reference to support understanding of European standards, directives, and reporting requirements.
Acronym | Full Form |
|---|---|
| AR | Application Requirement |
| BSR | Baltic Sea Region |
| CE | Circular Economy |
| CSRD | Corporate Sustainability Reporting Directive |
| DMA | Double Materiality Assessment |
| DR | Disclosure Requirement |
| EFRAG | European Financial Reporting Advisory Group |
| ESG | Environmental, Social, and Governance |
| ESRS | European Sustainability Reporting Standards |
| EU | European Union |
| E1 | ESRS Standard for Climate Change |
| E2 | ESRS Standard for Pollution |
| E3 | ESRS Standard for Water and Marine Resources |
| E4 | ESRS Standard for Biodiversity and Ecosystems |
| E5 | ESRS Standard for Resource Use and CE |
| EUSBSR PA | EU Strategy for the Baltic Sea Region Policy Area |
| GOV | Governance (Disclosure Requirement category under ESRS 2) |
| G1 | ESRS Standard for Business Conduct |
| IRO | Impact, Risk, and Opportunity |
| LSME | Listed Small and Medium Enterprises |
| MDR-A | Management Disclosure Requirement - Actions |
| MDR-M | Management Disclosure Requirement - Metrics |
| MDR-P | Management Disclosure Requirement - Policies |
| MT | Management Disclosure Requirement - Targets |
| NDA | Non-Disclosure Agreement |
| NFRD | Non-Financial Reporting Directive |
| NGO | Non-Governmental Organization |
| Portable Document Format | |
| SBM | Strategy-based Management |
| SFDR | Sustainable Finance Disclosures Regulation |
| SME | Small and Medium-sized Enterprise |
| S1 | ESRS Standard for Own Workforce |
| S2 | ESRS Standard for Workers in the Value Chain |
| S3 | ESRS Standard for Affected Communities |
| S4 | ESRS Standard for Consumers and End Users |
| TBC | To Be Clarified |
| VSME | Voluntary Standard for non-listed Small and Medium Enterprises |
| XLSX | Excel Spreadsheet File Format |
Term | Definition |
|---|---|
| Value Chain | The full range of activities that businesses go through to bring a product or service from conception to delivery. It includes all stakeholders, from suppliers to end-users, that affect or are affected by the company's operations. |
| Impact Materiality | A concept in sustainability that refers to the significance of the actual or potential positive or negative impacts of a company's activities on people or the environment over the short, medium, or long term. |
| Financial Materiality | The significance of risks and opportunities deriving from sustainability matters that have or could have a financial effect on a company's development, financial position, performance, or cash flows. |
| Double Materiality | A concept under the CSRD where companies need to report on both the financial materiality of sustainability issues (impacting the company’s financial performance) and the impact materiality (impacting society and the environment). |
| Sustainability Matters | Topics related to environmental, social, and governance (ESG) aspects that are identified as material in a company's sustainability assessment process. |
| Disclosure Requirements (DR) | Specific pieces of information that companies are required to disclose in their sustainability reports as defined by ESRS standards. |
| ESG Tool | A methodological tool used by companies to assess, manage, and report on their Environmental, Social, and Governance (ESG) performance. |
| Stakeholder Mapping | The process of identifying and evaluating the individuals, groups, or organizations that are affected by or can affect a company's operations. This is crucial for understanding and prioritizing stakeholder interests and concerns. |
| Governance (GOV) | A category in sustainability reporting that covers policies, procedures, and practices related to corporate governance, including business conduct, ethics, and compliance. |
| Circular Economy (CE) | An economic system aimed at eliminating waste and the continual use of resources through principles like reusing, recycling, and refurbishing materials and products. |
| Non-Financial Reporting Directive (NFRD) | An EU directive that requires large companies to disclose certain non-financial information related to environmental, social, and employee matters, human rights, and corruption. |
| Sustainable Finance Disclosures Regulation (SFDR) | An EU regulation that establishes harmonized rules for financial market participants on sustainability-related disclosures. |
| Listed Small and Medium Enterprises (LSME) | SMEs that are publicly traded on stock exchanges and subject to specific reporting standards like the ESRS LSME. |
| Voluntary Standard for non-listed Small and Medium Enterprises (VSME) | A set of sustainability reporting standards specifically designed for non-listed SMEs, which are voluntary in nature. |
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