Glossary

Assurance (in ESG Reporting)

Assurance is the external verification of sustainability data, comparable to financial auditing. It provides credibility by ensuring that reported ESG information is accurate, consistent, and reliable. With CSRD now mandating assurance, it has become a critical element of sustainability reporting, strengthening stakeholder confidence and reducing the risk of greenwashing.

The biodiversity crisis refers to the current state of significant and rapid loss of biodiversity on Earth. It is characterized by a substantial decline in the variety and abundance of plant and animal species, as well as the degradation and destruction of ecosystems worldwide. It is primarily caused by human activities such as habitat destruction, pollution, climate change, and overexploitation of resources. Efforts to address the crisis involve conserving habitats, implementing sustainable practices, and establishing protected areas. International agreements aim to halt biodiversity loss and restore ecosystems.

Brand identity is the collection of visual and verbal elements that represent and communicate the essence, values, and personality of a brand to its target audience. 

It serves as the outward expression of a brand’s unique characteristics and helps differentiate it from competitors. It is designed to create a cohesive and consistent brand experience across various touchpoints, including marketing materials, packaging, website, social media, and other communication channels.

 

Sustainability and brand identity are interconnected as they both contribute to the overall perception and reputation of a brand. Incorporating sustainability into a brand identity involves aligning the brand’s values, messaging, and visual elements with sustainability practices and principles. By incorporating sustainability into brand identity, a brand can differentiate itself, attract environmentally and/or socially conscious consumers, and contribute to positive change. It helps building a strong and authentic brand reputation while fostering a sense of responsibility towards the environment and society.

A carbon footprint measures the total greenhouse gas emissions, both direct and indirect, caused by an organization, product, or individual. It is expressed in CO₂ equivalents and serves as the foundation for developing effective reduction strategies and setting net-zero commitments. Understanding a carbon footprint is essential for identifying hotspots, prioritizing actions, and demonstrating accountability to regulators and stakeholders.

Carbon neutrality means achieving a balance between the greenhouse gases a company, product, or activity emits and the emissions it removes or offsets. To reach carbon neutrality, organizations first reduce their emissions as much as possible (across Scope 1, 2, and relevant Scope 3 sources) through efficiency, renewable energy, and process improvements. Any remaining emissions are then compensated for, typically through certified carbon credits from projects that avoid, reduce, or remove greenhouse gases elsewhere.

According to the UN and ISO 14068 standards, carbon neutrality is not the same as “net zero,” which requires deeper, long-term decarbonization across the entire value chain with minimal reliance on offsets.

Ensures that a company meets the growing range of sustainability-related regulations, standards, and reporting requirements. Effective compliance goes beyond ticking boxes: it creates transparency, reduces legal and reputational risks, and builds trust with stakeholders. By aligning with frameworks such as CSRD, ESRS, GRI, or the Swiss Code of Obligations, companies demonstrate accountability and strengthen their license to operate. A structured compliance approach also lays the foundation for strategic decision-making and long-term value creation.

While corporate communication encompasses the overall reputation and image of the organization, brand communication hones in on the specific identity and perception of individual brands within the organization’s portfolio. Both corporate and brand communication efforts need to align and support each other to ensure a consistent and coherent message across the organization’s various stakeholders.

The commitment of companies to operate in ways that create value not only for shareholders but also for employees, communities, and the environment. It goes beyond compliance by embedding ethical principles, sustainability, and social impact into everyday decision-making and long-term strategy. Corporate responsibility is important because it strengthens trust, enhances reputation, and ensures that business success is aligned with broader societal needs. Companies that embrace this approach are better positioned to manage risks, attract talent, and contribute to a resilient and sustainable economy.

Business transformation means the process of making significant and strategic changes to various aspects of a business to improve its overall performance, adapt to changing market conditions, and achieve long-term success. It involves rethinking and reshaping the fundamental aspects of a business, including its strategies, operations, structures, technologies, culture, and processes.

Business transformation typically occurs in response to various factors such as shifts in customer preferences, advances in technology, competitive pressures, regulatory changes, or the need to address organizational inefficiencies. The goal of business transformation is to enable the business to become more agile, innovative, efficient, and responsive to market demands.

Degrowth is an economic theory that questions the pursuit of continuous economic growth and advocates for a deliberate contraction of economic activity to achieve sustainability and well-being. It prioritizes social and environmental goals over maximizing GDP and promotes alternative models of progress and prosperity.

DEI refers to building workplaces where diverse perspectives are valued, opportunities are equitable, and all people feel included. Beyond compliance, DEI strengthens culture, innovation, and performance by ensuring that talent and leadership reflect the society companies serve. It also connects directly to Outlive’s focus on addressing unconscious bias and supporting healthier, more resilient organizations.

Double Materiality Analysis looks at sustainability from two angles: how your company impacts the environment and society (impact materiality), and how sustainability issues affect your business performance, risks, and opportunities (financial materiality). This dual perspective is at the heart of the EU’s CSRD/ESRS framework and ensures that companies are accountable not only for their footprint but also for how external ESG factors influence long-term value creation.

Ecosystems refer to interconnected communities of living organisms (such as plants, animals, and microorganisms) and their physical environment, including the non-living elements like air, water, and soil. Ecosystems can be found in diverse environments, ranging from forests and oceans to deserts and grasslands.

In an ecosystem, organisms interact with each other and with their surroundings, forming complex networks of relationships and dependencies. These interactions can involve processes such as energy flow, nutrient cycling, and ecological succession.

Ecosystems provide a wide range of services that are vital for life on Earth, including the provision of food, water, clean air, and raw materials. They also contribute to the regulation of climate, nutrient cycling, pollination, and the maintenance of biodiversity.

Ecosystems can vary in size and complexity, ranging from small, localized systems like a pond or a forest to large-scale ecosystems such as a coral reef or a tropical rainforest. 

Understanding and protecting ecosystems are important for maintaining ecological balance, conserving biodiversity, ensuring the sustainable use of natural resources, and ultimately, the survival of the human race.

Employer Branding refers to positioning a company as a responsible and attractive place to work by embedding sustainability and purpose into its identity. Today, strong ESG credentials are not only a reputational asset but a decisive factor in attracting, engaging, and retaining talent. A clear sustainability commitment signals to current and future employees that the company aligns with their values, invests in their growth, and contributes positively to society, making it a workplace people are proud to be part of.

ESG stands for Environmental, Social, and Governance. ESG refers to a set of criteria that investors and other stakeholders use to evaluate a company’s performance and practices in these three areas.

  1. Environmental (E): This aspect focuses on a company’s impact on the environment. It includes assessing the company’s efforts and performance in areas such as carbon emissions, energy efficiency, waste management, water usage, pollution prevention, and biodiversity conservation. Companies with strong environmental practices often strive to minimize their environmental footprint and adopt sustainable or even regenerative practices.
  2. Social (S): The social dimension of ESG looks at how a company manages its relationships with employees, customers, communities, and other stakeholders. It includes evaluating factors such as labor practices, diversity and inclusion, human rights, community engagement, product safety, customer satisfaction, and data privacy. Companies with strong social practices prioritize fair treatment of employees, respect for human rights, and positive contributions to society.
  3. Governance (G): Governance refers to the systems and processes that govern the way a company is operated and controlled. It involves assessing the company’s leadership, board structure, executive compensation, risk management practices, transparency, and ethical standards. Companies with strong governance practices have robust structures in place to ensure accountability, transparency, as well as ethical and long-term decision-making.

Overall, ESG considerations go beyond financial performance and focus on the broader impact of a company’s activities on the environment and society. It encourages companies to adopt sustainable and responsible business practices that create long-term value for both the company and its stakeholders.

ESG investing is the allocation of capital to companies or funds based on their environmental, social, and governance performance alongside traditional financial metrics. By integrating ESG criteria into investment decisions, investors can better manage risks, identify opportunities, and support companies that demonstrate responsible business practices. This approach is increasingly important as stakeholders expect financial returns to go hand in hand with sustainable value creation.

An ESG narrative describes a cohesive storyline that connects a company’s sustainability initiatives directly to its core purpose, values, and business performance. A strong ESG narrative goes beyond listing projects; it explains why the company acts, how it creates value, and what impact it delivers. It builds trust by showing consistency between strategy, actions, and outcomes — giving investors, employees, and customers clarity on where the company is heading and why it matters.

The European Sustainability Reporting Standards (ESRS) represent the official framework that companies must use to disclose sustainability information under the Corporate Sustainability Reporting Directive (CSRD). They are developed by the European Financial Reporting Advisory Group (EFRAG), an independent advisory body that works closely with the European Commission.

The ESRS ensure consistency and comparability across the EU, making sustainability information as reliable as financial reporting. Since January 2024, the first group of large and listed companies has been reporting under these standards, with additional companies, including non-EU firms with significant operations in Europe, coming into scope in the following years. By 2025, the framework is already shaping how thousands of businesses disclose ESG data, driving greater transparency for investors, regulators, and stakeholders.

The EU Taxonomy is a regulation that creates a common classification system for which economic activities can be considered environmentally sustainable. It is part of the EU’s Sustainable Finance Strategy and became law in 2020. The Taxonomy sets out six environmental objectives (climate change mitigation, climate change adaptation, sustainable use of water and marine resources, circular economy, pollution prevention, and biodiversity protection).

Companies subject to the Corporate Sustainability Reporting Directive (CSRD), as well as large financial institutions and investors in the EU, must report how much of their turnover, capital expenditure, and operating expenditure are aligned with the Taxonomy. For investors, it ensures comparability and helps prevent greenwashing; for companies, it provides a framework to show regulators, customers, and financiers that their activities genuinely support the transition to a low-carbon and sustainable economy.

The Global Reporting Initiative (GRI) is the world’s most widely used voluntary framework for sustainability reporting. It provides detailed standards that help companies disclose their environmental, social, and governance (ESG) impacts in a consistent, transparent, and comparable way.

GRI is designed for broad stakeholder accountability, from investors and regulators to customers, employees, and communities. Many companies combine GRI with mandatory frameworks such as CSRD or ISSB to meet regulatory requirements while also addressing wider stakeholder expectations and building credibility.

Green finance covers financial instruments such as loans, bonds, or credit lines that are specifically designed to fund projects with environmental benefits. From renewable energy and clean transport to energy-efficient buildings. It channels capital directly into the transition to a low-carbon economy, enabling businesses and governments to scale sustainable solutions while providing investors with transparent use-of-proceeds.

Green Ocean Strategies build upon the principles of Blue Ocean Strategies, but with a specific focus on sustainability and addressing major social challenges. By refining a company’s mission and vision, Green Ocean Strategies aim to enhance existing profitable performances while creating customer value that aligns with sustainability goals. These strategies enable companies to maintain long-term performance while actively addressing the pressing environmental and social issues of today.

Greenwashing refers to a deceptive or misleading marketing and communication practice when businesses portray themselves as more  sustainable than they actually are.

It involves making exaggerated or false claims about sustainability aspects of products, services, or company practices, with the intention of enhancing their public image or reputation.

Impact investing means directing capital toward projects and companies that aim to generate measurable social and environmental benefits alongside financial returns. Unlike traditional investing, it prioritizes demonstrable impact such as access to renewable energy, education, or biodiversity protection, while remaining financially viable.

The International Sustainability Standards Board (ISSB) is a global standard-setting body created by the IFRS Foundation in 2021 to develop a consistent baseline for sustainability disclosures. Its goal is to integrate environmental, social, and governance (ESG) information into mainstream financial reporting, making it comparable across countries and industries.

Unlike the Corporate Sustainability Reporting Directive (CSRD), which is an EU regulation requiring detailed, double-materiality reporting across environmental, social, and governance topics, the ISSB focuses on financial materiality, how sustainability risks and opportunities affect enterprise value from an investor perspective. In practice, CSRD/ESRS is mandatory for companies in the EU, while ISSB provides a voluntary global baseline that jurisdictions outside the EU can adopt. Many companies will need to pay attention to both: CSRD for compliance in Europe and ISSB to meet investor expectations in global capital markets.

KPIs are quantifiable metrics that track sustainability progress, such as emissions per unit produced, the share of renewable energy, or the percentage of recycled materials. They are important because they turn broad ambitions into measurable outcomes, enabling organizations to monitor performance, report transparently, and identify areas for improvement.

Marketing compliance involves various aspects, such as advertising standards and consumer protection regulations. It requires marketers to understand and comply with these rules to avoid legal risks, reputational damage, and financial penalties.

 

While marketing compliance ensures adherence to legal and ethical standards, greenwashing is an unethical marketing practice that can mislead consumers and undermine their trust. 

 

To prevent greenwashing, marketing compliance plays a crucial role. Companies should ensure that their marketing claims regarding sustainability are accurate, verifiable, and supported by credible evidence. Transparency, honesty, and accountability are essential in maintaining consumer trust and avoiding the pitfalls of greenwashing.

 

Ultimately, marketing compliance should go hand in hand with responsible marketing practices, where companies genuinely prioritize and uphold environmental and social sustainability, communicate honestly about their efforts, and back their claims with evidence and actions.

A materiality analysis is a process used by organizations to identify and prioritize the most significant economic, environmental, and social issues that are relevant to their business and stakeholders. It helps organizations understand which issues have the greatest impact on their operations and reputation and enables them to focus their resources and efforts accordingly.

It involves gathering data, conducting research, and engaging with stakeholders to identify and assess a wide range of potential issues. The goal is to identify the issues that are most relevant and important to the organization and its stakeholders, considering both the risks and opportunities they present. 

By conducting a materiality analysis, organizations can better understand their sustainability priorities, enhance decision-making processes, improve risk management, and build trust and credibility with stakeholders. It provides a foundation for developing sustainability strategies that address the issues that matter most to the organization and its stakeholders.

The Paris Agreement is an international treaty aimed at combatting climate change by limiting global warming. It sets a goal of keeping the temperature increase well below 2 degrees Celsius and encourages efforts to limit it to 1.5 degrees Celsius. The Science Based Targets Initiative (SBTi) is an effort to help companies set emissions reduction targets aligned with scientific guidelines. It provides a framework for companies to set ambitious and credible goals in line with the Paris Agreement’s objectives. Together, the Paris Agreement and SBTi promote global climate action and encourage companies to contribute to emissions reductions in a scientifically informed manner.

Psychological safety describes a workplace culture where employees feel safe to express ideas, raise concerns, or admit mistakes without fear of negative consequences. It is essential for innovation, collaboration, and resilience, as it encourages open dialogue and helps organizations adapt to change. In the sustainability context, it ensures that complex challenges can be addressed collectively and transparently.

True cost accounting (TCA) is an approach that aims to measure and account for the full social, environmental, and economic costs of products or services beyond their market price. It recognizes that conventional accounting systems often do not capture the complete costs associated with the production and consumption of goods and services, particularly the negative impacts on the environment and society.

 

TCA considers both the direct costs, such as production expenses and labor costs, and the indirect costs, such as environmental degradation, social inequality, health impacts, and resource depletion. It seeks to quantify and incorporate these externalities into the financial analysis to provide a more accurate reflection of the true costs and benefits of economic activities.

 

By accounting for the hidden costs and impacts, TCA aims to support better decision-making by businesses, policymakers, and consumers. It enables a more comprehensive assessment of the sustainability and long-term viability of different production and consumption choices. TCA can help identify more sustainable practices, promote responsible business behavior, and drive the transition towards more environmentally and socially responsible economic systems.

Implementing true cost accounting can be challenging, as it requires robust data collection, standardized methodologies, and consensus on how to assign monetary values to environmental and social impacts. However, it is an evolving field gaining attention and support from organizations, governments, and sustainability initiatives aiming to promote more transparent and holistic accounting practices.

A purpose-driven business integrates a social or environmental mission into its core strategy, ensuring that financial success is aligned with positive impact. This approach strengthens employer branding, builds customer loyalty, and drives long-term value creation. It is increasingly relevant as stakeholders expect companies to act not only responsibly but also with a clear and authentic sense of purpose.

Regenerative refers to a holistic approach that aims to restore, renew, and revitalize systems, processes, and resources, promoting their long-term health and sustainability. It goes beyond simply sustaining or preserving existing conditions and seeks to actively improve and regenerate them.

In the context of agriculture and land management, regenerative practices focus on restoring soil health, biodiversity, and ecological balance. These practices aim to enhance soil fertility, increase water retention, reduce erosion, and promote the natural cycling of nutrients. By adopting regenerative agricultural practices such as cover cropping, crop rotation, and agroforestry, farmers can enhance ecosystem services, sequester carbon, and promote resilient and sustainable food production systems.

In the context of business and economics, regenerative approaches advocate for strategies and practices that go beyond minimizing harm or reducing negative impacts. Instead, they aim to create positive, restorative, and regenerative effects on the environment, society, and the economy. This can involve implementing circular economy principles, using renewable energy sources, reducing waste and pollution, and supporting the well-being and development of communities.

Regenerative practices recognize the interconnectedness of various systems and the importance of nurturing and restoring their inherent capacities for self-renewal and growth. They align with the principles of sustainability and seek to create a positive impact by actively regenerating and improving the health and resilience of ecosystems, communities, and economies.

The reputation of a company refers to how it is perceived by stakeholders based on its actions, behavior, and performance. It is built on trust, credibility, and consistent delivery of value. A positive reputation enhances competitiveness, while a negative reputation can have detrimental effects. Managing and safeguarding reputation involves proactive efforts to build a positive longterm image, maintain open communication, address concerns, and act ethically.

Resilience refers to the ability of a system or organization to withstand and recover from disturbances, shocks, or changes while maintaining its essential functions and adapting to new conditions.

In the context of business, resilience refers to the ability of an organization to withstand and adapt to various challenges and disruptions, including economic downturns, market changes, technological advancements, supply chain disruptions, and regulatory changes. It involves having flexible and adaptive strategies, diversifying risks, building robust infrastructure and systems, and fostering a culture of innovation and continuous learning.

In the context of climate, resilience refers to the capacity of communities, ecosystems, and infrastructure to withstand the impacts of climate change, such as extreme weather events, sea-level rise, and temperature fluctuations. It involves anticipating and preparing for these impacts, implementing strategies to reduce vulnerabilities, and building adaptive capacity to recover and bounce back from disruptions.

Being resilient requires proactive planning, risk assessment, and the implementation of strategies that enhance the ability to absorb shocks, recover quickly, and adapt to new circumstances.

Scope 1, 2, and 3 emissions are categories defined by the Greenhouse Gas (GHG) Protocol to measure and report a company’s carbon footprint.

  • Scope 1 covers direct emissions from owned or controlled sources, such as company vehicles or on-site fuel use.
  • Scope 2 includes indirect emissions from purchased electricity, steam, heating, or cooling.
  • Scope 3 encompasses all other indirect emissions across the value chain, from supplier activities to product use and disposal.

 

Together, they provide a comprehensive picture of an organization’s climate impact. They are important because most emissions typically fall into Scope 3, and regulators such as CSRD, SBTi, and other frameworks require companies to measure, manage, and disclose them transparently.

Sustainability is a concept of meeting present needs without compromising the ability of future generations to meet their own needs. It involves creating and implementing practices and policies that ensure environmental, social, and economic well-being for both current and future generations. 

Stakeholders of a company are individuals or groups who have an interest in or are affected by the company’s activities. They include internal stakeholders (such as owners and employees) and external stakeholders (such as customers, suppliers, government, community, investors, and media). 

Understanding and effectively managing the needs, expectations, and interests of these stakeholders is crucial for a company’s success, reputation, and sustainability. Engaging with stakeholders and considering their perspectives can contribute to better decision-making, risk management, and the overall social and environmental responsibility of the company.

Sustainability reporting is the structured disclosure of a company’s environmental, social, and governance (ESG) performance, targets, and progress. It provides stakeholders with transparency, demonstrates accountability, and ensures alignment with regulatory requirements such as CSRD, ESRS, or the Swiss Code of Obligations, as well as global frameworks like GRI and ISSB.

At Outlive, reporting is not a box-ticking exercise but a way to create clarity and long-term value

The United Nations Development Goals, also known as the Sustainable Development Goals (SDGs), are a set of 17 global goals adopted by all United Nations member states in 2015. These goals provide a framework for addressing global challenges and achieving sustainable development by 2030. 

 

  1. No Poverty: End poverty in all its forms and ensure social protection for all.
  2. Zero Hunger: End hunger, achieve food security, and promote sustainable agriculture.
  3. Good Health and Well-being: Ensure healthy lives and promote well-being for all at all ages.
  4. Quality Education: Ensure inclusive and equitable quality education and promote lifelong learning opportunities.
  5. Gender Equality: Achieve gender equality and empower all women and girls.
  6. Clean Water and Sanitation: Ensure availability and sustainable management of water and sanitation for all.
  7. Affordable and Clean Energy: Ensure access to affordable, reliable, sustainable, and modern energy for all.
  8. Decent Work and Economic Growth: Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
  9. Industry, Innovation, and Infrastructure: Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
  10. Reduced Inequalities: Reduce inequality within and among countries.
  11. Sustainable Cities and Communities: Make cities and human settlements inclusive, safe, resilient, and sustainable.
  12. Responsible Consumption and Production: Ensure sustainable consumption and production patterns.
  13. Climate Action: Take urgent action to combat climate change and its impacts.
  14. Life Below Water: Conserve and sustainably use the oceans, seas, and marine resources.
  15. Life on Land: Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation, and halt biodiversity loss.
  16. Peace, Justice, and Strong Institutions: Promote peaceful and inclusive societies, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels.
  17. Partnerships for the Goals: Strengthen the means of implementation and revitalize the global partnership for sustainable development.

These goals cover a wide range of social, economic, and environmental issues and aim to create a more equitable, sustainable, and prosperous world for present and future generations.

The Sustainable Finance Disclosure Regulation (SFDR) is an EU law, effective since 2021, requiring asset managers, financial advisers, and other financial market participants to disclose how they integrate sustainability risks into investment decisions and advice. It categorizes financial products into three levels: Article 6 (no sustainability focus), Article 8 (promotes environmental or social characteristics), and Article 9 (has sustainability as its objective).

SFDR improves transparency by giving investors a clear view of how sustainable a fund or product really is, reducing the risk of greenwashing and enabling comparability across the EU financial market. For companies seeking investment, alignment with SFDR criteria can be a key differentiator in attracting sustainable finance.

Swiss law requiring large public-interest companies (listed firms, banks, insurers) with over 500 employees and either CHF 20 million in assets or CHF 40 million in sales to report on non-financial topics, including environment, human rights, and anti-corruption.

Swiss regulation detailing how companies must implement due diligence on conflict minerals and child labour in supply chains. It requires clear reporting on risk assessments, policies, and mitigation measures.

Sustainable finance describes the integration of environmental, social, and governance factors into financial services such as banking, insurance, and asset management. It aims to align the financial system with climate goals and resilience, directing capital toward businesses and projects that are prepared for a sustainable future.

Value chain due diligence is the process of identifying, preventing, and addressing environmental and human rights risks across supply chains. It requires companies to assess impacts, engage with suppliers, and implement corrective measures where necessary. This is critical for compliance with emerging EU and Swiss regulations and for building resilience and trust in increasingly complex global supply networks.