The more sustainability gains traction, the more acronyms are added. But don’t let this alphabet soup paralyze you before tackling the world of sustainability yourself. Here are the top 10 most common acronyms to keep you in the conversation. We’re in this together and fellow change-makers will surely help you along the way.
SDG
Sustainable Development Goals (SDG) are the United Nations “blueprint to achieve a better and more sustainable future for all.” These 17 goals are inter-connected in order to leave no one behind in balancing social, economic and environmental sustainability. Adopted in 2015, they are scheduled to be achieved by 2030.
ESG
Environment, Social, Governance (ESG) is one of the most commonly used acronyms, nearly synonymous with sustainability and, it is often the outline for Sustainability Reporting to convey a view of a company’s social/value performance, such as:
- Environmental factors: greenhouse gas emissions, waste management, energy efficiency
- Social factors: fair labour practices, workplace safety, support for local communities
- Governance factors: stakeholder engagement, transparency, governance frameworks.
CSR
Corporate social responsibility (CSR) is a way that organisations contribute to society through engagement, volunteer support, or ethically-oriented practices ranging from educational programs to health initiatives. It is often a more recognizable acronym, because it has been used for decades longer than other acronyms on our list and now is a component of the ‘S’ in ESG.
Scope 1, 2, 3
Scope 1: Your direct emissions; meaning, how much power your company is using directly. In other words, the fossil fuels burnt by your business. Two examples are manufacturing and airlines.
Scope 2:The power that you purchase and then use, for instance, the electricity used in your plants and offices.
Scope 3: Everything else. This is a massive list from the commute work travel to suppliers to the carbon impact created from your last event. It is massive and difficult to measure.
COP
Filling the news feeds every November, the “Conference Of Parties” (COP) is the governing body of international events on climate change and related topics. Most often referred to is the annual event by United Nations Convention on Climate Change (UNFCCC), which started with COP1 in 1995. It more recently gained attention as COP21 secured the Paris Agreement, highlighting a global focus on limiting carbon emissions to combat climate change.
Those are the acronyms you’re mostly likely to encounter when you start. Ready for the advanced list?
GRI
Global Reporting Initiative (GRI) is an internationally-recognized, non-profit that provides guidelines for companies to use in their sustainability reporting. The GRI Framework is updated regularly and has become the most-used standard framework for companies to report their impacts in the same way.
GHG
Greenhouse Gas (GHG) includes natural gases (water vapor, carbon dioxide, and methane) plus man-made gasses such as chlorofluorocarbons (CFCs). Both types are rising, increasing the heat within the Earth’s atmosphere.
- CO2e is a way companies simplify their reporting of Greenhouse Gas emissions in one number. CO2 is carbon dioxide and the ‘e’ stands for equivalent, where other gases are converted to represent.
- GHG Protocol is the standard framework for companies to account for and report their emissions data. It is the results of a partnership of sustainability leaders, the World Resources Institute (WRI), and the World Business Council of Sustainable Development (WBCSD).
CDP
The Carbon Disclosure Project (CDP) is an international non-profit organisation working with companies and cities on environmental impact reporting. Over the last 20 years, 8,400 companies have shared their data, making it the largest repository of environmental impact data in the world.
CDP provides investors and regulators with detailed information to make informed decisions when addressing climate change, deforestation and water security. In addition to the reported data, the CDP’s ‘Carbon Action Initiative’ encourages investors to implement reduction projects that generate positive ROI.
DJSI
The Dow Jones Sustainability Index (DJSI) tracks “the stock performance of the world’s leading companies in terms of economic, environmental and social criteria.” This serves as a benchmark for investors who want to include sustainability factors in making decisions for their portfolio holdings. For the companies listed on DJSI, it is a mark of excellence in sustainability.
DE&I
Diversity, Equity and Inclusion (DE&I) matters. Whilst not climate-related, it is an acronym used A LOT in the SDGs, ESG and Sustainability Reporting for relating fairness for all people. It is foundationally important and included as our 10th acronym here for the respected impact it deserves.
BONUS Section: Once you’ve mastered the 10 acronyms above, here are 5 handy terms to add.
Circular Economy
Like a circle, Circular Economy focuses on reducing waste, by first using a resource for as long as possible (reuse), then regenerating it at its end (recycle/upcycle), in order to lower its effect on the environment. In simple terms, a plastic straw used for 10 minutes and discarded is NOT circular. However, a reusable straw that is used to its full capacity and then recycled or upcycled is circular. Now, apply that concept to an entire economy. Our podcast episode, Eco-Marketing Through Experience provides a nice example of a circular restaurant business.
Net-Zero, Carbon Neutral, Carbon Negative and Carbon Offsetting
- Net-Zero: No carbon was emitted. For example, something that is 100% solar with no use of fossil fuels.
- Carbon Neutral: Investing in carbon neutralizing activities to the same degree of your carbon emissions balances your impact on greenhouse gases in your environment to 0.
- Most companies measure their carbon emissions then buy equivalent carbon credits where another organization manages the carbon neutralizing initiative (planting trees, etc.) This is known as Carbon Offsetting.
- Carbon Negative: If you offset more than you produce, your impact is negative. So, in this case, ‘negative’ is really good.
- Check out our podcast episode, How Marketers Drive Carbon Neutrality for more information.
Sustainability Report / Impact Report
A sustainability report is a report published by a company or organization on the economic, environmental and social impacts caused by their everyday activities. It is often a supplement to a public company’s Annual Report.
- Supplier Reporting. This is a growing practice of requesting sustainability reports from your supply chain to assess alignment and report on their total impact in your own business practices. Our Responsible Merchandising podcast episode speaks to this topic.
Green bonds are the same as any other investment bond except they’re focused on funding environmental and climate positive projects. They may include renewable energy, pollution control, sustainable resource use, conservation, clean transportation and climate change.
Like other bonds, investors expect to make a profit as the bond matures. Many green bonds provide tax benefits as well.
Knowing what these acronyms stand for is obviously just the first step. Understanding how to use their meanings in the world of sustainability and reporting on them is the next step. IT ALL MATTERS. Thank you for taking the first step with us.
Great info… I always get my acronyms in this space mixed up… especially with so many “G’s”