Sustainability Acronyms and Terms You Need To Know
Axiom, as always, is here to help you navigate the complex landscape of ESG with confidence. This definitive glossary covers the essential frameworks, regulations and technical terminology you need to know as we enter 2026!
The frameworks and regulations that drive forward sustainability initiatives across the globe.
CSRD – Corporate Sustainability Reporting Directive The overarching EU legislation requiring large companies and listed SMEs to disclose detailed information on the risks and opportunities arising from social and environmental issues, as well as the impact of their activities on people and the environment.
ESRS – European Sustainability Reporting Standards Mandatory reporting framework that outlines the specific metrics and qualitative disclosures companies must provide to comply with the CSRD (see above!)
CSDDD – Corporate Sustainability Due Diligence Directive Legislation requiring companies to identify, prevent, mitigate and account for negative human rights and environmental impacts within their own operations and their value chains.
DMA – Double Materiality Assessment The foundational concept of the CSRD, whereby companies must report on both how sustainability issues impact their business (financial materiality) and how their business impacts people and the environment (impact materiality).
ISSB – International Sustainability Standards Board An independent standard-setting body developing a comprehensive global baseline of high-quality sustainability disclosure standards (IFRS S1 & S2) to meet investors’ information needs.
UK SRS – UK Sustainability Reporting Standards The forthcoming UK-specific framework (expected implementation later this year), heavily aligned with the global ISSB standards, designed to streamline corporate reporting in the United Kingdom.
SDR – Sustainability Disclosure Requirements The UK’s strategy for investment labelling and disclosure, ensuring financial products are clearly categorised to combat greenwashing and help retail investors.
SECR – Streamlined Energy and Carbon Reporting UK regulation requiring large companies to disclose energy use, carbon emissions and energy efficiency actions within their annual reports.
ESOS – Energy Savings Opportunity Scheme A mandatory energy assessment scheme for large organisations in the UK, requiring periodic audits to identify cost-effective energy-saving measures.
EUDR – EU Deforestation Regulation Much-delayed regulation prohibiting products associated with deforestation (including cattle, wood, cocoa, soy, palm oil, coffee and rubber) from being sold or exported from the EU market.
CBAM – Carbon Border Adjustment Mechanism A tariff on carbon-intensive products entering the EU, designed to prevent “carbon leakage” by ensuring imported goods face the same carbon costs as domestic products.
TCFD – Task Force on Climate-related Financial Disclosures Framework providing recommendations on the types of information companies should disclose to support investors in assessing climate risks. (Note: TCFD monitoring has largely been transferred to the IFRS Foundation).
SEC Climate Rules Refers to the US Securities and Exchange Commission rules aiming to standardise how US public companies report climate-related risks and greenhouse gas emissions, which will significantly impact global supply chains.
The technical language of Net Zero and emissions accounting.
GHG – Greenhouse Gas Assessing the atmospheric gases – primarily carbon dioxide, methane and nitrous oxide – that contribute to the greenhouse effect and global warming.
CO2e – Carbon Dioxide Equivalent A metric measure used to compare the emissions from various greenhouse gases on the basis of their global-warming potential (GWP), by converting amounts of other gases to the equivalent amount of carbon dioxide.
Net Zero – The final goal, where greenhouse gas emissions are reduced to a level consistent with the 1.5°C pathway, with any remaining hard-to-abate emissions neutralised by permanent carbon removal.
SBTi – Science Based Targets initiative A global body enabling businesses to set ambitious emissions reduction targets in line with the latest climate science.
Scope 1 – Direct Emissions Emissions from sources that an organisation owns or controls directly, such as fuel combustion in boilers, furnaces and transport.
Scope 2 – Indirect Emissions Emissions associated with the purchase of electricity, steam, heat or cooling. Although the emissions occur at the facility where the energy is generated, they are accounted for by the user.
Scope 3 – Value Chain Emissions All indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream (supply chain) and downstream (product use/disposal) emissions. This is typically the largest source of data complexity for businesses.
LULUCF – Land Use, Land-Use Change and Forestry One of the longer acronyms you’ll need to know, this mouthful covers emissions and removals of greenhouse gases resulting from direct human-induced land use.
VCM – Voluntary Carbon Market A decentralised market where private actors voluntarily buy and sell carbon credits that represent certified removals or reductions of greenhouse gases.
REGO – Renewable Energy Guarantees of Origin The UK mechanism providing transparency to consumers about the proportion of electricity that suppliers source from renewable generation.
Defining the “S” in ESG – a core focus for Axiom.
SLV – Social Value Calculating the wider positive impact a business has on society beyond profit. Did you know Axiom is the only All-In-One sustainability software offering both ESG and Social Value data? Try our Social Value Calculator today!
SROI – Social Return on Investment A principles-based method for measuring extra-financial value (i.e., environmental and social value) relative to resources invested.
EDI – Equality, Diversity and Inclusion A strategic framework promoting fair treatment and full participation of all people. (Also referred to as “DEI” in America).
UNGP – United Nations Guiding Principles on Business and Human Rights A set of guidelines implementing the “Protect, Respect and Remedy” framework to prevent and address human rights abuses in business operations.
ILO – International Labour Organisation A specialised agency of the United Nations responsible for setting international labour standards and promoting social justice and decent work.
FPIC – Free, Prior and Informed Consent A specific right that pertains to Indigenous Peoples and is recognised in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
Social Value Model – Mandatory framework used by the UK central government to evaluate the wider social, economic and environmental impacts of its procurement. For companies bidding on public contracts, the Social Value Model typically accounts for a minimum of 10% of the total evaluation score.
Managing resources and biodiversity data.
TNFD – Taskforce on Nature-related Financial Disclosures A risk management and disclosure framework for organisations to report and act on evolving nature-related risks.
DPP – Digital Product Passport A digital “ID card” for a product that tracks its ingredients, origin and repair details to make recycling and reuse easier
LCA – Life Cycle Assessment A way to assess environmental impacts associated with all the stages of the life-cycle of a commercial product, process or service.
EPD – Environmental Product Declaration An independently verified and registered document that communicates transparent and comparable information about the life-cycle environmental impact of products.
CE – Circular Economy A model of production and consumption which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible to minimise waste.
WEEE – Waste Electrical and Electronic Equipment A directive in the EU/UK governing the collection, recycling and recovery targets for all types of electrical goods.
EPR – Extended Producer Responsibility A policy approach whereby producers are given a significant responsibility – financial and/or physical – for the treatment or disposal of post-consumer products.
The tools and benchmarks ensuring data integrity.
ISO – International Organisation for Standardisation An independent, non-governmental international organisation that develops and publishes voluntary consensus technical standards. Key standards include:
CDP – Carbon Disclosure Project A not-for-profit charity that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts.
GRI – Global Reporting Initiative An independent international organisation providing the world’s most widely used standards for sustainability reporting.
AI – Artificial Intelligence In a sustainability context, the use of machine learning and advanced data processing to model climate risks, optimise energy usage and aggregate complex supply chain data.
IoT – Internet of Things The network of physical objects embedded with sensors and software, vital for real-time energy monitoring and automated data collection.
B-Corp – Certified Benefit Corporation A certification for for-profit companies that meet high standards of social and environmental performance, accountability and transparency.
AXIOM is a powerful cloud-based platform that helps your business monitor, analyse and improve sustainability performance.
Using specialist technology, we equip businesses with a tool which enables them to track their environmental and social performance whilst also improving governance – identifying and mitigating risks associated with business operations and relationships.
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