Sustainability Reporting and ESG Considerations

Flashcards focused on key vocabulary terms and definitions related to sustainability reporting and ESG performance.

Sustainability Reporting

Firm disclosures about their environmental, social, and corporate governance performance and goals.

Disclosure Requirements

Mandatory regulations requiring firms to share sustainability and climate-related information with investors.

ESG Factors

Environmental, Social, and Governance criteria used to measure the sustainability and societal impact of investments.

Contingent Liabilities

Potential liabilities that may occur depending on the outcome of a future event, such as lawsuits or regulatory investigations.

Deepwater Horizon

An offshore drilling rig that experienced a catastrophic blowout in 2010, resulting in one of the largest environmental disasters in history.

Corporate Sustainability Reporting Directive (CSRD)

A European Commission directive requiring broad sets of firms to disclose their sustainability information.

Greenhouse Gas Emissions (GHG)

Pollutants emitted from industries that contribute to global warming and climate change.

Rating Methodologies

The various methods used by ESG rating firms to evaluate and score companies based on their sustainability performance.

Investor Concerns

The growing demand from investors for consistent, comparable, and reliable information about climate-related risks.

Sustainability Accounting Standards Board (SASB)

An organization that develops sustainability standards focused on issues material to investors.