Understanding ESG terminology is a must whether you’re in finance, sustainability, or corporate governance. These sustainability abbreviations aren’t just jargon – they do represent frameworks and directives.
Understanding ESG terminology is essential for anyone involved in sustainability, compliance, finance, or corporate strategy. This lexicon introduces 13 key ESG abbreviations that define how businesses report, disclose, and act on environmental, social, and governance issues.
Each abbreviations is explained with a short definition and practical context, helping you integrate these terms into daily operations, reports, and decision-making. From EU regulations like CSRD and SFDR to global standards such as GRI and TCFD, this guide offers clarity in a space often filled with jargon.
Whether you’re drafting ESG reports, assessing supply chain risks, or aligning your business with global goals, these terms form the foundation. Knowing what each abbreviation stands for – and why it matters – saves time, avoids confusion, and supports accurate communication with stakeholders.
Use this lexicon as a quick-reference tool to stay sharp, informed, and compliant in an evolving ESG landscape that increasingly demands transparency and action.
- 1 13 Key Sustainability Abbreviations
- 1.1 ESG – Environmental, Social, and Governance
- 1.2 CSRD – Corporate Sustainability Reporting Directive
- 1.3 GRI – Global Reporting Initiative
- 1.4 SASB – Sustainability Accounting Standards Board
- 1.5 ISSB – International Sustainability Standards Board
- 1.6 TCFD – Task Force on Climate-related Financial Disclosures
- 1.7 TNFD – Taskforce on Nature-related Financial Disclosures
- 1.8 SFDR – Sustainable Finance Disclosure Regulation
- 1.9 UNGC – United Nations Global Compact
- 1.10 SDGs – Sustainable Development Goals
- 1.11 CSDDD – Corporate Sustainability Due Diligence Directive
- 1.12 CDP – Carbon Disclosure Project
- 1.13 CSR – Corporate Social Responsibility
- 2 FAQ: Understanding ESG / Sustainability Abbreviations
- 2.0.1 1. What does ESG stand for in sustainability reporting?
- 2.0.2 2. Why are ESG abbreviations important for businesses?
- 2.0.3 3. What is the difference between CSRD and GRI?
- 2.0.4 4. Which ESG standards are mandatory?
- 2.0.5 5. How do these sustainability abbreviations affect ESG reporting in 2025 and beyond?
- 2.0.6 6. Are all these sustainability abbreviations used worldwide?
- 2.0.7 7. What’s the best way to keep up with new ESG frameworks?
13 Key Sustainability Abbreviations
ESG – Environmental, Social, and Governance
What it is: A framework for evaluating non-financial risks and opportunities related to environmental protection, social responsibility, and corporate governance.
Why it matters: ESG performance now influences investor decisions, customer loyalty, and compliance standards.
CSRD – Corporate Sustainability Reporting Directive
What it is: A European Union regulation that mandates detailed ESG reporting for large companies and listed SMEs.
Why it matters: From 2024, thousands of businesses must disclose ESG data using standardized formats.
GRI – Global Reporting Initiative
What it is: A set of voluntary reporting standards for ESG topics, tailored by industry.
Why it matters: The GRI framework is widely used to enhance transparency and stakeholder trust.
SASB – Sustainability Accounting Standards Board
What it is: Global ESG disclosure standards aligned with financial reporting (under IFRS).
Why it matters: Helps companies communicate material sustainability information to investors.
ISSB – International Sustainability Standards Board
What it is: A global body creating unified ESG reporting standards.
Why it matters: Its framework emphasizes climate risk, aligning disclosures with financial realities.
What it is: A reporting framework focused on climate-related financial risks.
Why it matters: Endorsed by over 3,000 organizations, it’s a critical tool for climate risk transparency.
What it is: A disclosure framework focused on nature and biodiversity risks.
Why it matters: It supports businesses in evaluating and managing natural capital dependencies.
SFDR – Sustainable Finance Disclosure Regulation
What it is: An EU regulation requiring ESG transparency from financial market participants.
Why it matters: It classifies investment products based on sustainability to prevent greenwashing.
UNGC – United Nations Global Compact
What it is: A voluntary initiative for businesses to adopt universal ESG principles.
Why it matters: Over 20,000 companies use it to align strategies with global development goals.
SDGs – Sustainable Development Goals
What it is: A set of 17 goals by the United Nations to promote global sustainability by 2030.
Why it matters: ESG strategies are often mapped to the 17 SDGs to show broader social impact.
CSDDD – Corporate Sustainability Due Diligence Directive
What it is: An upcoming EU law requiring large companies to identify and mitigate ESG risks across supply chains.
Why it matters: Forces a shift from reactive to proactive sustainability governance.
CDP – Carbon Disclosure Project
What it is: A global non-profit that runs a platform for climate-related disclosures.
Why it matters: Over 18,000 companies report to CDP to benchmark and improve climate performance.
CSR – Corporate Social Responsibility
What it is: A company’s self-regulated efforts to be socially and environmentally accountable.
Why it matters: CSR forms the ethical backbone of many ESG strategies.
FAQ: Understanding ESG / Sustainability Abbreviations
1. What does ESG stand for in sustainability reporting?
ESG stands for Environmental, Social, and Governance. It refers to three central factors used to measure the sustainability and ethical impact of an investment or company.
2. Why are ESG abbreviations important for businesses?
They help companies comply with regulations, communicate transparently with stakeholders, and align with global sustainability goals. Mastering them supports reporting, audits, and long-term strategy.
3. What is the difference between CSRD and GRI?
CSRD is an EU regulation mandating ESG reporting, while GRI provides voluntary global standards for sustainability reporting. CSRD may require companies to reference GRI as part of their compliance.
4. Which ESG standards are mandatory?
In the EU, CSRD and SFDR are mandatory for certain companies. Other frameworks like TCFD or CDP are voluntary but widely adopted.
5. How do these sustainability abbreviations affect ESG reporting in 2025 and beyond?
With increasing global regulations, understanding these terms is crucial. They influence how data is collected, disclosed, and evaluated by investors and regulators.
6. Are all these sustainability abbreviations used worldwide?
No. Some, like CSRD and SFDR, are specific to the European Union. Others, like GRI, SASB, and TCFD, are used globally.
7. What’s the best way to keep up with new ESG frameworks?
Follow updates from the European Commission, the IFRS Foundation, and sustainability platforms like CDP. Subscribing to industry newsletters helps stay ahead of regulatory changes.
