ESG & Sustainability Glossary

A mandatory ESG disclosure framework by SEBI for the top 1,000 listed companies in India. It replaced the older BRR format and covers nine principles across environmental, social, and governance dimensions. Read our full guide

A subset of BRSR indicators that require reasonable assurance (third-party verification). SEBI is phasing in BRSR Core assurance requirements for the top listed companies starting from FY 2023-24.

A systematic assessment of an organization's greenhouse gas emissions across all scopes (1, 2, and 3). The audit quantifies total emissions, identifies hotspots, and forms the baseline for reduction strategies.

A tradeable certificate representing the right to emit one metric ton of CO₂. Organizations can purchase carbon credits to offset their own emissions through verified projects like reforestation or renewable energy.

The total amount of greenhouse gases generated by an organization's activities, expressed in metric tons of CO₂ equivalent (tCO₂e). Includes direct emissions and indirect emissions from energy use and supply chains.

Achieving a balance between carbon emissions produced and carbon removed from the atmosphere. An organization becomes carbon neutral by reducing emissions and purchasing offsets for the remainder.

A global non-profit that runs the world's leading environmental disclosure system. Over 23,000 companies disclose climate, water, and forest data through CDP questionnaires, which investors and procurement teams use to assess environmental risk.

An EU regulation requiring large companies and listed SMEs to report detailed sustainability information under the European Sustainability Reporting Standards (ESRS). Indian exporters to the EU may be affected from 2026 onward.

A framework for evaluating a company's impact and practices across three pillars: environmental stewardship, social responsibility, and corporate governance. Used by investors, regulators, and rating agencies to assess non-financial risk.

The detailed reporting standards mandated under the EU's CSRD. ESRS covers climate change, pollution, biodiversity, workforce, business conduct, and more — with both qualitative and quantitative disclosure requirements.

The most widely used international standard for measuring and managing greenhouse gas emissions. Developed by WRI and WBCSD, it defines the Scope 1, 2, and 3 classification system used in nearly all carbon accounting. Learn about emission scopes

The practice of making misleading or unsubstantiated claims about an organization's environmental performance. Regulators worldwide are increasingly penalizing greenwashing through disclosure mandates and advertising standards.

An independent international organization that provides the world's most widely used sustainability reporting standards. GRI Standards help organizations report their impacts on the economy, environment, and people in a comparable way.

An international standard for quantifying, monitoring, reporting, and verifying greenhouse gas emissions and removals. Part 1 covers organization-level reporting, Part 2 covers project-level, and Part 3 covers verification.

A process to identify which ESG topics are most significant to a company and its stakeholders. Double materiality (required under CSRD) considers both impact on the company and the company's impact on society and environment.

Reducing greenhouse gas emissions as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere by oceans, forests, or carbon capture. Unlike carbon neutral, net zero requires deep decarbonization first — offsets alone don't count.

India's framework of nine principles for responsible business conduct, issued by the Ministry of Corporate Affairs. BRSR reporting is structured around these nine NGRBC principles.

A partnership between CDP, UN Global Compact, WRI, and WWF that helps companies set emission reduction targets aligned with climate science. SBTi-validated targets are considered the gold standard for corporate climate commitments.

Direct greenhouse gas emissions from sources owned or controlled by the organization — such as company vehicles, on-site fuel combustion, and industrial processes. Full breakdown

Indirect emissions from purchased electricity, steam, heating, and cooling consumed by the organization. Can be calculated using location-based or market-based methods. Full breakdown

All other indirect emissions across a company's value chain — including supply chain, business travel, employee commuting, product use, and end-of-life treatment. Typically accounts for 70-90% of a company's total footprint. Full breakdown

A framework for companies to disclose climate-related risks and opportunities across four areas: governance, strategy, risk management, and metrics/targets. TCFD recommendations have been adopted into regulations in multiple jurisdictions.

17 global goals adopted by all UN member states in 2015 as a shared blueprint for peace and prosperity. Companies increasingly map their ESG activities to specific SDGs — most commonly SDG 7 (Clean Energy), SDG 12 (Responsible Consumption), and SDG 13 (Climate Action).