3. Terminology relevant for this pathway
IMPORTANT TERM
SIMPLE DEFINITION
Sustainability
The practice of conducting business in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs, encompassing environmental, social, and economic aspects.
Purpose-Driven Business
Companies that prioritize a clear, socially or environmentally oriented mission beyond profit, integrating it into their core business strategies.
Triple Bottom Line (TBL)
A framework that evaluates a company's performance based on three pillars: social, environmental, and financial, emphasizing a balanced approach to sustainability.
Circular Economy
The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting.
Sustainable Innovation
The process of developing new products, services, or business models that have a positive impact on the environment, society, and profitability.
Environmental, Social, and Governance (ESG) Criteria
A set of standards and guidelines used by investors to assess a company's sustainability and ethical performance, influencing investment decisions.
Impact Investment
The allocation of capital to businesses or projects that are created to generate both financial returns and positive social or environmental impacts.
Sustainable Supply Chain
An approach that seeks to reduce environmental and social impacts by evaluating and improving the sustainability of every stage in the supply chain, from sourcing to distribution.
Social Entrepreneurship
Entrepreneurial ventures that focus on addressing social or environmental issues, aiming to create positive social change.
Sustainable Development Goals (SDGs)
A set of 17 global goals adopted by the United Nations to address various global challenges, including poverty, inequality, climate change, and environmental degradation.
Renewable Energy
Energy derived from sources that can be naturally replenished, such as solar, wind, and hydroelectric power, which reduces carbon emissions and environmental harm.
Sustainable Innovation
The process of developing new products, services, or business models that have a positive impact on the environment, society, and profitability.
Employee Well-being
A focus on the health, happiness, and professional development of employees, often leading to increased productivity and loyalty.
Sustainable Reporting
The practice of disclosing a company's environmental, social, and governance performance and impacts through annual sustainability reports or other forms of disclosure.
Sustainable Marketing
The promotion of products or services in a way that emphasizes their environmental or social benefits, often targeting conscious consumers.
Carbon Footprint
The total amount of greenhouse gases, primarily carbon dioxide, emitted directly or indirectly by an individual, organization, product, or event, usually measured in equivalent tons of CO2.
Renewable Energy
Energy derived from sources that can be naturally replenished, such as solar, wind, and hydroelectric power, which reduces carbon emissions and environmental harm.
Materiality assessment
A materiality assessment helps organizations identify and prioritize sustainability issues that are most significant to their stakeholders and business operations. Consultants conduct these assessments to focus sustainability efforts effectively.
Corporate Social Responsibility (CSR)
The voluntary efforts made by a business to address social and environmental issues beyond profit generation, including philanthropy, ethical practices, and community engagement.