Glossary

Biodiversity:

The diversity of life on Earth, including the diversity of species, ecosystems and genetic variations, and the efforts of companies to protect and preserve them.

Carbon Footprint:

The total amount of greenhouse gas emissions caused directly and indirectly by a person, organization, event, or product.

Diversity Charter:

A corporate initiative to promote diversity in companies and institutions, which was launched in Germany in December 2006. The aim is to create a working environment free of prejudice and to value all employees regardless of various characteristics.

Code of Conduct:

A Code of Conduct, or Code of Conduct, is a document that establishes ethical standards and guidelines of conduct that members of an organization or company must adhere to. It serves as a guideline for appropriate behavior in the workplace and often covers topics such as integrity, respect, responsibility, and compliance with the law. The goal is to promote a positive and ethical work environment and minimize the risk of unethical behavior.

CSR (Corporate Social Responsibility):

Corporate Social Responsibility; refers to the responsibility of companies for their impact on society.

CSRD (Corporate Sustainability Reporting Directive):

The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that aims to improve and expand corporate sustainability reporting. It requires companies to disclose detailed and reliable information about their environmental, social and governance (ESG) impacts. The CSRD aims to increase transparency by ensuring that economic actors and investors have access to comprehensive information on companies’ sustainability performance.

Code (German Sustainability Code):

The German Sustainability Code (DNK) is a framework developed by the German Council for Sustainable Development in Germany to provide companies and organizations with a transparent guide for reporting on their sustainability performance. It includes standards and indicators on environmental, social and governance aspects of corporate governance and is intended to improve the comparability and visibility of sustainability practices. The Code promotes transparent communication about sustainable corporate strategies and measures in order to increase awareness and commitment to sustainability in the economy.

Double materiality:

A principle that takes into account both the impact of the company’s activities on the environment and society and the impact of environmental and social issues on the company itself.

Due diligence procedures:

Due diligence procedures are thorough reviews and analyses carried out before any business transaction, such as mergers, acquisitions or partnerships, in order to capture all relevant information and potential risks. They include the evaluation of financial, legal, operational and strategic aspects of a company or project. The goal is to gain a detailed understanding of the situation and make informed decisions to avoid financial losses or legal issues.

Energy efficiency:

The ratio of the service, service, goods or energy yield to the energy used.

ESG (Environmental, Social, and Governance):

Environmental, Social and Corporate Governance; three central pillars of sustainability reporting, which cover the material non-financial aspects.

ESRS (European Sustainability Reporting Standards):

European standards for sustainability reporting, developed within the framework of the EU taxonomy.

EU Taxonomy:

The EU Taxonomy is a classification system developed by the European Union to clearly define which economic activities can be considered environmentally sustainable. It aims to steer investments towards sustainable projects and companies by setting clear criteria for environmental protection and sustainability, for example in relation to climate protection goals or the reduction of negative environmental impacts. This taxonomy is intended to create transparency and thus support both companies and investors in making environmentally friendly choices and promoting the transition to a greener economy.

GRI (Global Reporting Initiative):

International organization that has developed a widely used standard for sustainability reporting.

Greenwashing:

The practice of misleadingly portraying a company or product as more environmentally friendly than it actually is. The ERS is intended to prevent this.

Green Finance:

Financial instruments and services designed to promote environmental benefits and support sustainable development.

Impact Investing:

Investments in companies, organizations and funds with the intention of achieving positive social and environmental impacts in addition to financial returns.

iXBRL (Inline eXtensible Business Reporting Language):

iXBRL is a global data format that enables the integration of machine-readable XBRL data into human-readable HTML documents. It is an extension of XBRL (eXtensible Business Reporting Language) technology, which has been developed specifically for digital financial and sustainability reporting. iXBRL makes it possible to label financial and non-financial information in such a way that it can be read by humans as well as processed efficiently by computers. It is the data format that the CSRD requires when a company is obliged to report.

Climate activism:

The engagement of individuals, groups and organizations that aim to promote climate change mitigation and adaptation through various forms of protest, awareness, and political influence.

Climate neutrality:

The state in which greenhouse gas emissions caused by activities are offset by appropriate reduction measures in order to achieve a net-zero emissions balance.

Climate resilience:

The ability of systems, communities, and businesses to resist, adapt, and recover from the impacts of climate change.

KPIs (Key Performance Indicators):

key performance indicators; specific metrics used to evaluate a company’s performance in different areas.

Circular economy:

An economic system aimed at minimizing waste and maximizing the reuse, repair, remanufacturing and recycling of products and materials.

Life Cycle Assessment (LCA):

A method of assessing the environmental impacts associated with all stages of the life cycle of a product, process or service.

Supply Chain Responsibility / Supply Chain Diligence:

The commitment of companies to ensure good working conditions, fair practices and environmental protection along their entire supply chain.

Materiality / Materiality:

Concept for determining the materiality of certain information for stakeholder decision-making processes.

Sustainability Report:

A report that provides information about a company’s environmental, social, and economic performance and impact.

Sustainability management:

The process by which companies integrate sustainability into their business strategies and practices to create long-term environmental, social, and economic value.

Regenerative agriculture:

An approach to land management that aims to improve the health and vitality of soil ecosystems, increase biodiversity, improve the water cycle and sequester CO2.

SDGs (Sustainable Development Goals):

17 Sustainable Development Goals set by the United Nations to promote environmental, social and economic sustainability worldwide.

Scope 1, 2, 3 emissions:

Categorize greenhouse gas emissions according to direct emissions from owned or controlled sources (Scope 1), indirect emissions from purchased energy generation (Scope 2) and all other indirect emissions along the value chain (Scope 3).

Supply chain due diligence:

A process by which companies systematically review their supply chains for human rights and environmental risks, assess those risks, take appropriate risk mitigation measures, and transparently report on their efforts to ensure that their business practices are ethical and sustainable.

Social Justice:

The principle that all people should have equal rights and opportunities, regardless of their origin or circumstances.

Social inclusion:

The efforts and actions of companies to ensure that all individuals, regardless of their origin or circumstances, have equal access to resources and opportunities.

Stakeholder:

People or groups who have an influence on or an interest in a company’s activities, such as employees, customers, suppliers, investors, and the community.

TCFD (Task Force on Climate-related Financial Disclosures):

Initiative to promote the disclosure of climate-related financial information to make risks and opportunities related to climate change transparent.

Transition Risk:

Risks arising from the transition to a lower-carbon and more sustainable economy. These include financial, legal and market risks arising from changes in legislation, technology, market trends and consumer behaviour related to climate change and sustainability.

Circular design:

The approach of designing products and systems to be optimized from the outset for longevity, reuse, repair, refurbishment and recycling in order to minimise the formation of waste and use resources more efficiently.