Glossar

A sustainability strategy is a systematic plan that companies develop to integrate environmental, social, and economic sustainability into their business processes. It serves to create long-term value for companies, stakeholders and the environment.

The effect the undertaking has or could have on the environment and people, including effects on their human rights, as a result of the undertaking's activities or business relationships. The impacts can be actual or potential, negative or positive, short-term, medium or long-term, intended or unintended, and reversible or irreversible. Impacts indicate the undertaking's contribution, negative or positive, to sustainable development.

Uncertain environmental, social or governance events or conditions that, if they occur, could cause a potential material positive effect on the undertaking's business model, or strategy on its capability to achieve its goals and targets and to create value, and therefore may influence its decisions and those of its business relationship partners with regard to sustainability matters. Like any other opportunity, sustainability-related opportunities are measured as a combination of an impact’s magnitude and the probability of occurrence.

Uncertain environmental, social or governance events or conditions that, if they occur, could cause a potential material negative effect on the undertaking's business model or strategy and on its capability to achieve its goals and targets and to create value, and therefore may influence its decisions and those of its business relationships with regard to sustainability matters. Like any other  risks, sustainability-related risks are  the  combination  of  an  impact’s  magnitude  and  the  probability  of occurrence.

Corporate sustainability reporting refers to the disclosure of environmental, social, and governance performance. It is often required by law and aims to enable stakeholders to assess a company's non-financial performance.

Sustainable development is a concept for meeting current needs without jeopardizing those of the future.

The Sustainable Development Goals are a set of 17 global goals aimed at combating poverty and promoting sustainable development.

The Sustainable Finance Disclosure Regulation (SFDR) is an EU regulation aimed at creating transparency in the financial sector by requiring financial market participants to disclose the impact of their investments on Environmental, Social, and Governance (ESG) factors. It distinguishes between different levels of sustainability in financial products to promote sustainable investments and prevent greenwashing.