ESG (Environmental, Social, & Governance)
ESG is the umbrella term used for most corporate responsibility practices, performance metrics, and initiatives. It encompasses environmental and sustainability practices, such as reducing greenhouse gas emissions and using land and natural resources responsibly; social practices such as worker conditions; and corporate governance.
CSRD (Corporate Sustainability Reporting Directive)
The CSRD is the European Union’s comprehensive ESG regulation. It applies to more than 50,000 companies within and beyond Europe and includes disclosures across all categories of environmental, social, and governance practices. Learn more →
NFRD (Non-Financial Reporting Directive)
The EU’s previous ESG disclosures programme. While revised in 2019 to include TCFD questions, the update was optional for filers, and NFRD will be replaced by the CSRD beginning in 2025.
ESRS (European Sustainability Reporting Standards)
ESRS (European Sustainability Reporting Standards)The EU’s technical rules governing disclosures under the CSRD. The ESRS include 4 types of disclosures: General disclosures, which are required for all companies; Environmental standards; Social standards; and a Governance standard. Learn more →
ISSB (International Sustainability Standards Board)
The body responsible for publishing a new set of global ESG disclosure standards in June 2023. The new standards aim to “bring to an end the alphabet soup in the market” and provide a single, unified framework for sustainability reporting. Read our guide →
IFRS (International Financial Reporting Standards)
The IFRS Foundation is the nonprofit parent organisation that created the ISSB. Its stated purpose is to harmonise the world around a common set of disclosure rules that are consistent, complete, comparable, and verifiable.
SASB (Sustainability Accounting Standards Board)
SASB is a nonprofit organization responsible for developing standards for financial-related sustainability disclosures. According to IFRS, “SASB Standards identify the subset of environmental, social and governance issues most relevant to financial performance and enterprise value for 77 industries.”
TCFD (Taskforce on Climate-related Financial Disclosures)
A set of 11 questions has served as a global baseline for climate disclosures. While many programmes now require more than just TCFD answers, these answers are a reporting backbone that can be reused in multiple places.
SFDR (Sustainable Finance Disclosure Regulation)
The EU’s programme for creating ESG “nutritional labels” for financial products and the firms that market them—giving buyers and investors context on climate impact and any associated risks. SFDR will pair closely with the EU’s Green Taxonomy, the new rulebook on what counts as officially green. Learn more →
SECR (Streamlined Energy and Carbon Reporting)
The UK government’s requirement for large companies to disclose electricity usage and carbon emissions alongside their financials each year. SECR applies to quoted companies of any size, large unquoted companies, and large LLPs. Learn more →
SEC (US Securities & Exchange Commission)
The US regulatory body responsible for proposals that would require federal contractors, public companies, and ESG funds to disclose information about their ESG practices.
FCA (Financial Conduct Authority)
The UK’s financial regulatory body, which requires large asset managers and owners—including life insurers and FCA-regulated pension providers—to offer full transparency on the climate aspects of their portfolios. Learn more →
The Greenhouse Gas Protocol defines the standards for emissions measurement used by many companies and governments to reduce emissions.
SBT (Science-Based Targets)
The Science-Based Targets initiative sets the standard for emissions-reduction targets used by many companies and governments around the world. According to SBTI, targets qualify as “science-based” if they apply the latest climate science on what’s needed to meet the Paris Agreement goal of limiting global warming to 1.5°C above pre-industrial levels.