Glossary
A plain‑language reference for sustainability reporting — CSRD, ESRS, VSME, CBAM, the EU Taxonomy, carbon accounting and related concepts. Updated for the Omnibus 2026 simplifications.
31 terms
C
7 termsCarbon neutral
Term describing emissions that are offset through compensation, but not necessarily reduced.
CBAM (Carbon Border Adjustment Mechanism)
EU's carbon border levy that puts a price on emissions embedded in imported carbon-intensive goods.
CDP (formerly Carbon Disclosure Project)
Global platform through which companies disclose their climate, water and forest data to investors and customers.
Climate risk
Financial and operational risks faced by companies due to climate change — both physical and transitional.
Corporate Carbon Footprint (CCF)
A company's total greenhouse gas balance across Scopes 1, 2 and 3 for a given reporting period.
CSDDD (Corporate Sustainability Due Diligence Directive)
EU supply chain directive on human rights and environmental due diligence across the value chain.
CSRD (Corporate Sustainability Reporting Directive)
EU directive that requires large companies to publish standardized sustainability reports under the ESRS.
D
3 termsDNSH ("Do No Significant Harm")
EU Taxonomy principle: an activity must not significantly harm the other environmental objectives.
Double materiality
CSRD concept that assesses both the financial impact of sustainability topics on the company and the company's impact on society and the environment.
Duplicate reporting
Challenge that companies must report the same data across multiple frameworks.
E
3 termsEcoVadis
Rating agency that evaluates the ESG performance of suppliers via standardised questionnaires.
ESRS (European Sustainability Reporting Standards)
Mandatory EU standards that define the content and structure of CSRD reports.
EU Taxonomy
EU classification system defining which economic activities qualify as environmentally sustainable.
G
4 termsGerman Supply Chain Act (LkSG)
German law requiring companies to meet human rights and environmental due diligence obligations in their supply chain.
GHG Protocol (Greenhouse Gas Protocol)
World-leading standard for measuring and reporting greenhouse gas emissions across Scopes 1, 2 and 3.
Greenwashing
Misleading or unsubstantiated sustainability claims that make a company or product appear 'greener' than it is.
GRI (Global Reporting Initiative)
World's most widely used voluntary sustainability reporting standard.
S
5 termsSAQ 5.0 (Self-Assessment Questionnaire)
Standardised sustainability questionnaire of the automotive industry (Drive Sustainability).
SBTi (Science Based Targets initiative)
Initiative that validates science-based corporate climate targets aligned with a 1.5°C pathway.
Scope 1
Direct greenhouse gas emissions from sources that are owned or controlled by the company.
Scope 2
Indirect emissions from purchased energy such as electricity, heat or steam.
Scope 3
Indirect emissions across the value chain — often the largest share of a company's carbon footprint.