Dictionary

(Indicadores Básicos de Sostenibilidad) — mandatory baseline indicator set defined by CINIF: metrics across emissions, energy, water, waste, workforce, safety, diversity, corruption incidents.

The timely and affordable ability to choose and obtain quality, appropriate production resources and services needed for a farming system.

The capability to reach and participate in markets on informed, reliable and fair terms, with realistic choice over buyers, products and conditions of exchange.

A relationship in which an actor must explain and justify decisions or performance to others who can question the account and trigger correction, consequence or remedy.

for actual installation-level emissions

A core quality principle for emissions and sustainability data: reported values should be systematically neither over- nor understated, with uncertainty reduced as far as practicable.

Active ownership is the use of investor rights and influence, including engagement and voting, to affect company behaviour or stewardship outcomes.

An investment strategy in which shareholders use their ownership rights to press companies for change, increasingly including environmental, social and governance objectives.

A quantitative measure of an activity that results in greenhouse gas emissions — such as fuel burned or kilometres travelled — which is multiplied by an emission factor to calculate emissions.

Product-level environmental benefit claim requires testing **before** the claim; test must fit the claim's representation

defined against Part I/Part II of the Annex (international conventions: ICCPR, ICESCR, ILO core, Minamata, Stockholm POPs, Basel, CBD…)

adverse environmental impact or adverse human rights impact (3(1)(d))

**31 indicators** aligned with GRI/SSE model guidance; **DFM ESG Reporting Guide** — **32 indicators**; both voluntary-but-encouraged, covering GHG intensity, energy mix, water, gender pay ratio, employee turnover, injury rate, board diversity, CEO pay ratio, anti-corruption disclosures.

AI governance is the set of policies, roles, controls and review processes used to manage the responsible use of artificial intelligence systems.

Algorithmic bias is a systematic distortion in automated outputs that can arise from data, design choices, assumptions or deployment context.

Anomaly detection is the identification of data points, events or patterns that differ materially from expected behaviour or normal ranges.

The transformation of data so that no individual is identifiable by means reasonably likely to be used, taking the data, available auxiliary information and context into account.

A proposed — and widely used but formally rejected — name for a geological epoch defined by dominant human influence on Earth's systems.

Meaning "caused or produced by human activity" — the qualifier that distinguishes human-driven environmental change, such as most modern greenhouse gas emissions, from natural variation.

The organised political and legislative campaign, centred in the United States, seeking to restrict the use of environmental, social and governance considerations in investment and business decisions.

An anti-greenwashing rule is a regulatory or supervisory requirement intended to prevent misleading sustainability claims in financial products, services or communications.

API integration is the connection of systems through application programming interfaces so data or functions can be exchanged in a controlled way.

King IV disclosure regime (distinct from comply-or-explain): application of all principles is assumed; explanation of practices required.

Machine systems that perform tasks associated with human intelligence — increasingly central to sustainability both as a tool (monitoring, modelling, efficiency) and as a fast-growing source of energy demand.

A social-theory approach, derived from Deleuze and Guattari, that analyses socio-ecological arrangements as fluid wholes assembled from heterogeneous human and non-human parts.

The decision of how to divide an investment portfolio across asset classes such as equities, bonds and cash — the primary driver of a portfolio's risk, return and, increasingly, its sustainability profile.

The accounting reduction of an asset's carrying value when it is no longer recoverable — the mechanism through which climate and stranded-asset risk reaches company balance sheets.

A firm that invests capital on behalf of clients — a principal category of responsible-investment signatory, acting under mandates from asset owners.

An institution that owns investment capital — pension funds, insurers, sovereign wealth funds, endowments — and sets the long-term strategy that asset managers are hired to implement.

Scope 1 and Scope 2, reported in **tonnes of CO₂ equivalent (tCO₂e)**.

An independent engagement designed to increase intended users' confidence in defined sustainability information by evaluating it against suitable criteria and reporting a conclusion.

Assurance-ready data is information prepared with enough structure, evidence, controls and traceability to support independent review.

The persistent discrepancy between people's stated pro-environmental attitudes and their actual purchasing and consumption behaviour.

A systematic, independent and documented process for obtaining objective evidence and evaluating it against defined criteria to determine the extent to which requirements are fulfilled.

Audit evidence is information used by an auditor or reviewer to support conclusions about whether a claim, control or disclosure is reliable.

aligned assets under management / total covered AuM

person established in the EU customs territory, authorised by the member-state competent authority; mandatory status from 1 Jan 2026

Automated decision-making is the use of software or algorithms to make or materially influence decisions without full manual determination.

A vehicle capable of performing driving tasks without continuous human control, classified by SAE automation levels 0–5 — with significant, contested implications for transport sustainability.

11 core disclosures (B1–B11): strategy, practices, energy, GHG Scope 1–2 (estimates allowed), pollution, biodiversity, water, resource use, workforce, health & safety, remuneration, child/forced labour, convictions/fines

Shifts in what people and households do — travel, diet, energy use, consumption — recognised by the IPCC as a mitigation resource capable of cutting end-use emissions 40–70% by 2050.

A defined reference point or comparative standard used to interpret performance, set expectations or assess whether a result is stronger, weaker or different from an appropriate comparator.

Best-in-class is an investment approach that favours issuers or companies with stronger sustainability performance relative to peers in the same sector or category.

A systematic tendency in how evidence is selected, measured, interpreted or used that pushes conclusions away from the reality they are intended to describe.

A bond whose proceeds finance the protection or restoration of biodiversity — from use-of-proceeds green bonds with nature objectives to outcome-linked wildlife bonds.

The layered financing structure of a blended-finance deal, in which concessional first-loss capital absorbs risk so commercial investors can participate in impact projects.

Blended finance is the use of public, philanthropic or concessional capital to mobilise additional private investment for development or sustainability outcomes.

A distributed, append-only ledger technology applied in sustainability to supply-chain traceability, carbon-credit registries and renewable-energy certification — with its own energy footprint to manage.

Blockchain traceability is the use of a distributed ledger to record supply-chain events, transactions or attributes for later verification.

A use-of-proceeds bond financing a sustainable ocean economy — green-bond principles applied to marine conservation, sustainable fisheries, offshore renewables and coastal resilience.

Organised collective refusal to buy from, trade with or deal with a company or country to pressure it to change its conduct — a longstanding tool of consumer activism on sustainability issues.

The valuation penalty or higher cost of capital applied to carbon-intensive ("brown") assets and firms — the mirror image of the "greenium" paid for green assets.

subset of **9 attributes** (incl. GHG footprint incl. Scope 3 intensity, water, waste, energy, employee well-being/safety, gender diversity, POSH complaints, inclusive development, fair business conduct, value-chain disclosures).

The obligation placed on the person making a claim, taking a decision or seeking an exception to provide evidence sufficient for that position to be accepted.

*direct business partner* (commercial agreement with the company) and *indirect business partner* (performs related business operations without direct agreement) (3(1)(f))

Organised collective purchasing to reward companies whose conduct aligns with activists' values — the "carrot" counterpart to the boycott's "stick."

The share of a company's capital expenditure that is aligned with the EU Taxonomy — the forward-looking disclosure KPI that reveals whether investment plans match transition claims.

aligned CapEx + CapEx plans (5–10 year plans to expand alignment, must target alignment within the plan period)

A tool that converts activity data — energy use, travel, waste, purchases — into an estimated greenhouse-gas footprint, for individuals, households or organisations.

Must have competent and reliable scientific evidence; disclose if offset pays for reductions required by law

deductible from the certificate obligation

Scheduling or relocating computing workloads to times and places where grid electricity is cleanest — cutting the carbon footprint of digital services without new hardware.

Catalytic capital is capital designed to mobilise additional investment or enable impact by accepting higher risk, lower return, longer timeframes or flexible terms.

A high-yield bond that transfers disaster risk from insurers to capital markets — investors lose principal if a defined catastrophe occurs.

harm-based exclusion lists; Council fossil-fuel carve-in for Transition

Commercial campaigns linking sales or brand engagement to support for a social or environmental cause — from checkout round-ups to buy-one-give-one models.

electronic certificate corresponding to 1 tCO₂e embedded emissions

annual declaration: quantities per good, total embedded emissions, certificates surrendered, carbon price paid in third country

declarant accounts, certificate holding/surrender/cancellation

weighted average of EU ETS auction clearing prices; **quarterly** publication in 2026 (Q1 2026: €75.36; Q2 2026: €75.28), **weekly** from 2027 (Implementing Reg. 2025/2548)

A third-party attestation that a product, process, service, system or person fulfils specified requirements within a defined scope.

Seals must be backed by a genuine evaluation; material connections disclosed

(i) upstream business partners' activities (design, extraction, sourcing, manufacture, transport, storage, supply of raw materials/products/parts; product/service development); (ii) downstream partners' activities limited to distribution, transport and storage **for or on behalf of the company**; excludes export-controlled goods under Reg. (EU) 2021/821 and weapons/munitions post-authorisation (3(1)(g))

Change detection is the comparison of data from different points in time to identify where and how conditions have changed.

low / standard / high risk classification (Implementing Reg. 2025/1093 lists low- and high-risk countries; EU-27, UK, US, China = low; Indonesia = standard)

The involvement of volunteers in scientific research — from biodiversity sightings to air-quality sensing — now a recognised data source for environmental monitoring and the SDGs.

fault-based liability for harm that a compliant plan would have prevented

An umbrella term — and investment asset class — for products, services and processes that reduce environmental harm through efficiency, clean energy and pollution control.

One of the two Climate Investment Funds trust funds, providing large-scale concessional finance for low-carbon technology deployment in middle-income and developing countries.

The world's largest investor-led engagement initiative, coordinating shareholder pressure on the biggest corporate emitters to govern, disclose and implement net-zero transition plans.

The research field and practice of communicating climate science, risk and solutions to different publics — from audience segmentation to framing, storytelling and misinformation response.

A claim that an activity goes beyond net zero by removing more greenhouse gases from the atmosphere than it emits — a marketing-forward term without a settled technical standard.

governance, risk appetite, **climate scenario analysis and stress testing** (incl. standardized scenarios set by OSFI), GHG emissions disclosure (Scope 1/2, financed emissions Scope 3 expected on phased basis), transition-plan expectations.

statutory component of the annual sustainability report (s.292A), comprising climate disclosures per **AASB S2**, directors' declaration, and notes.

A climate transition plan is a time-bound plan describing how an organisation intends to align strategy, operations, capital allocation and governance with climate goals.

A forward-looking financial metric estimating the present-value impact of climate change on a company or portfolio.

defined negatively in s.414CB(3): does not require disclosure of information about the company's *impact* on the environment — i.e., **single (outside-in / financial) materiality is hard-wired into the statutory definition**.

A positive effect on an objective or group beyond the primary purpose of an intervention, demonstrated separately rather than assumed from the intervention's intention.

business strategy incl. sustainability; board oversight of ESG risks; stakeholder identification; corporate integrity policy.

certificate sales from **1 Feb 2027**

A production model in which large groups collaborate on shared resources without relying primarily on prices or managerial hierarchies.

An ongoing two-way process through which an organisation builds relationships, shares information, understands impacts, enables affected communities to influence decisions and supports access to remedy.

A complaint expresses dissatisfaction about a body, process or service, while an appeal asks for reconsideration of a specific decision made within the assurance system.

A single index constructed by aggregating multiple individual indicators to summarise a multi-dimensional concept.

additional datapoints (C1–C9) incl. Scope 3 estimates, transition-plan elements

Concessional capital is finance offered on terms more favourable than market terms, such as lower returns, longer tenor or higher risk tolerance.

Development finance provided on terms more favourable than the market, through below-market rates, grace periods or subordination.

**tantalum, tin, tungsten, gold (3TG)** originating from conflict-affected or high-risk areas.

Purchasing behaviour in which consumers deliberately weigh the environmental and social consequences of what they buy, favouring products aligned with their values.

A freely given, specific, informed and unambiguous indication of a person's wishes, expressed through clear affirmative action and capable of being withdrawn.

The practice of raising and managing capital to fund conservation of ecosystems, species and protected areas, using mechanisms from grants to investment instruments.

Continuous monitoring is the regular or near-real-time observation of data, controls, risks or performance indicators over time.

A substantiated causal role played by an intervention within a wider set of influences, supported by a credible theory of change and evidence that expected mechanisms operated.

A controlled vocabulary is an approved list of terms used to reduce ambiguity and keep naming consistent across data, documents or systems.

Systematic tracking of companies' involvement in adverse ESG events — incidents, lawsuits and violations — using media, regulatory and NGO sources.

The marketing of products or corporate image on the basis of environmental attributes — a field dating to the 1970s and now tightly linked to greenwashing risk.

The minimum return a company must earn to satisfy its debt and equity providers, typically measured as the weighted average cost of capital (WACC).

banks/investors use investees' turnover or CapEx KPIs

A coupon step-up is an increase in bond interest payable when specified conditions are met or missed, commonly linked to sustainability performance in sustainability-linked bonds.

(Climate Risk Management and Scenario Analysis) guidelines for banks (OJK 2023).

General Requirements (IFRS S1-aligned); **CSDS 2** — Climate-related Disclosures (IFRS S2-aligned). Voluntary unless mandated.

(3+ directors incl. 1 independent); **CSR Policy**; **Board report disclosure**; unspent amounts → **Unspent CSR Account** / specified funds.

DDS reference number required for customs release (activation sequenced)

Facilities housing IT infrastructure that consumed around 415 TWh of electricity in 2024 — about 1.5 per cent of global demand — and growing fast with AI.

A non-parametric method that benchmarks the relative efficiency of comparable units by measuring their distance from a best-practice frontier.

A data gap is a missing, incomplete or insufficient data point that limits analysis, reporting or decision-making.

Data lineage is the record of where data came from, how it moved and how it changed before being used or reported.

The principle that personal data collected and processed should be adequate, relevant and limited to what is necessary for a specified purpose.

A documented process carried out before high-risk processing to assess necessity, proportionality and risks to people, and to determine measures that reduce those risks.

Data provenance is the documented origin and custody of data, including the source, collection method and relevant handling history.