CSR flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

IFRS S1

ISSB standard requiring disclosure of material sustainability-related risks and opportunities that could affect enterprise value, built on the TCFD architecture and incorporating SASB industry metrics.

GRI 3 Material Topics

Universal GRI standard that requires reporting the process used to determine material topics and the list of material topics, forming the basis for topic-specific disclosures.

Double materiality

Concept requiring companies to report both how sustainability matters affect the company financially and how the company impacts people and the environment.

TCFD four pillars

Governance, strategy, risk management, and metrics and targets; the eleven recommended disclosures are organized under these pillars for climate-related financial disclosure.

SASB Standards

Industry-specific standards identifying financially material sustainability metrics for 77 industries, now maintained as industry-based guidance within the ISSB framework.

Materiality threshold

The point at which omitting or misstating information could influence decisions of primary users; materiality is judged qualitatively and quantitatively, not by topic popularity.

Impact materiality

Assessment of the significance of a company's actual or potential effects on people and the environment, considering scale, scope, and irremediability.

Stakeholder engagement record

Documentation of who was engaged, when, by what method, and how their input influenced reported topics; essential evidence for assurance and credibility.

AA1000SES

AccountAbility standard setting principles of inclusivity, materiality, responsiveness, and impact for the quality of stakeholder engagement processes.

Materiality matrix

A visual plot of sustainability topics by stakeholder importance against business impact; axes and scoring methodology must be disclosed to be interpretable.

ISAE 3000 (Revised)

International assurance standard for non-financial information; limited assurance gives a negative-form conclusion, reasonable assurance gives a positive opinion.

Operational control approach

GHG consolidation method counting 100% of emissions from operations over which the company has operational control, regardless of ownership share.

Data quality hierarchy

Ranking of ESG data sources from metered or measured data at the top, through calculated values, down to supplier estimates and spend-based approximations.

ESG restatement

Correction of previously reported sustainability data, disclosed with the reason, the restated figure, and the period affected to preserve comparability.

Assurance readiness

State in which the reporting boundary, methodologies, and evidence trails are documented and sufficient for an independent assurance provider to perform its engagement.

Scope 2 dual reporting

Requirement to report purchased electricity emissions using both the location-based grid average factor and the market-based contractual instrument method.

Scope 3 Category 11

Use of sold products; emissions from the use phase of goods and services sold, often the largest Scope 3 category for energy-using products.

GWP

Global warming potential converts each greenhouse gas to CO2-equivalent; the IPCC Assessment Report version used must be stated and applied consistently.

Climate scenario analysis

Testing strategy resilience under at least a low-carbon transition scenario and a business-as-usual scenario, disclosing assumptions and time horizons.

Scope 1 emissions

Direct greenhouse gas emissions from sources owned or controlled by the company, including combustion, process emissions, and company-owned vehicles.

GRI content index

A table mapping each GRI standard and disclosure to its location in the report, demonstrating completeness and enabling traceability for readers and assurors.

Balanced reporting

Disclosure of unfavorable performance and failures alongside positive results, avoiding selective presentation that misleads readers about actual performance.

Target specification

A credible target states the baseline year, target year, metric, boundary, and interim milestones, and is linked to capital expenditure plans.

Assurance statement scope

Identifies the standard applied, the metrics and periods covered, the level of assurance, and any limitations or exclusions from the engagement.

CSRD phasing

Application timeline starting FY2024 for large public-interest entities over 500 employees, extending to other large companies and listed SMEs in later waves.

ESRS E1

The ESRS topical standard on climate change, requiring disclosure of transition plans, GHG emissions, energy, and climate-related physical and transition risks.

EU Taxonomy

Classification system defining environmentally sustainable activities through substantial contribution, do-no-significant-harm, and minimum social safeguards criteria.

SFDR Article 8

Classification for financial products that promote environmental or social characteristics, requiring pre-contractual and periodic disclosure of how those characteristics are met.

XBRL instance document

A machine-readable file containing tagged facts with their entity, period, and unit contexts, interpreted against a taxonomy that defines the concepts.

Inline XBRL

A format embedding XBRL tags within an HTML document, producing a single file that is both human-readable and machine-readable for regulators and investors.

Legal Entity Identifier

A 20-character alphanumeric code uniquely identifying a legal entity in digital filings, disambiguating entities across jurisdictions and reporting systems.

Independence threat

A circumstance such as self-review or a commercial relationship that compromises an assurance provider's objectivity, requiring safeguards or engagement decline.