Adjusting systems, businesses, or ecosystems to minimize the damage caused by the effects of climate change, such as extreme weather events or rising sea levels.

The process of planting trees on land that has not previously been forested, contributing to carbon sequestration and biodiversity enhancement.

Ensuring that a business, investment, or project conforms to the sustainability criteria laid out in frameworks like the EU Taxonomy.

Greenhouse gas emissions that would have occurred if a sustainable intervention had not been implemented. For example, switching from fossil fuels to renewable energy prevents emissions.

The most effective methods for achieving a high level of environmental protection, often used in industries with significant environmental impacts.

The variety of all life forms on Earth, from plants and animals to fungi and microorganisms. High biodiversity is crucial for ecosystem stability and resilience.

A process where negative impacts on biodiversity caused by development are compensated by the protection or restoration of biodiversity elsewhere.

The presence of individuals from different backgrounds (gender, race, age, experience) on a company’s board, promoting diverse perspectives in corporate governance.

Technology used to capture carbon dioxide emissions from industrial processes and store them underground or use them for other purposes, preventing CO₂ from entering the atmosphere.

The amount of carbon (in CO₂ emissions) emitted per unit of energy, product, or economic output.

Achieving a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks. This can be achieved by reducing emissions and offsetting the remaining emissions.

A reduction in emissions of carbon dioxide or other greenhouse gases made to compensate for emissions elsewhere.

The process of capturing and storing atmospheric carbon dioxide in plants, soil, oceans, or geologic formations to reduce greenhouse gas concentrations.

An economic system aimed at eliminating waste and continual use of resources by designing products and processes to keep materials in use for as long as possible through recycling, reusing, and refurbishing.

Efforts to reduce vulnerability to the negative impacts of climate change (e.g., floods, droughts) by making systems more resilient.

Measures and policies aimed at reducing the sources or enhancing the sinks of greenhouse gases to limit the extent of global warming.

The ability of a system, community, or organization to cope with the impacts of climate change while maintaining essential functions.

The system by which a company is directed and controlled, involving board structures, policies, and practices that ensure accountability, fairness, and transparency.

A company’s responsibility to operate in a manner that enhances society and the environment, beyond merely following legal obligations.

The process of reducing or eliminating carbon dioxide emissions in sectors like energy, transportation, and manufacturing through the adoption of renewable energy and clean technologies.

Practices or products that ensure no forest ecosystems are destroyed or degraded in their creation or sourcing.

The act of publicly sharing information about a company's environmental, social, and governance practices, often required by regulators or requested by stakeholders.

Ensuring a diverse workforce that reflects different genders, ethnicities, ages, abilities, and experiences, fostering an inclusive workplace where all employees feel valued.

A principle in the EU Taxonomy requiring that economic activities contribute positively to sustainability goals without significantly harming other environmental or social objectives.

A concept in ESG reporting that requires organizations to consider both the impact of sustainability factors on their financial performance and their impact on society and the environment.

The benefits that humans receive from natural ecosystems, including clean air and water, pollination of crops, and climate regulation.

The practice of using less energy to perform the same task, such as upgrading lighting systems or improving insulation in buildings, reducing energy consumption and emissions.

A process that evaluates the likely environmental impacts of a proposed project, taking into account interrelated socio-economic, cultural, and human-health aspects.

A set of criteria used to measure a company’s performance in sustainability-related areas: Environmental (climate, resource use), Social (labor practices, community impact), and Governance (board structure, ethics).

The incorporation of ESG factors into investment decisions or business operations, assessing the long-term risks and opportunities associated with them.

Procuring materials, goods, or services in a way that minimizes harm to people and the environment, often focusing on labor rights, sustainability, and fair trade.

A classification system established by the European Union to help investors and companies identify environmentally sustainable economic activities.

The fair treatment and meaningful involvement of all people, regardless of race, color, or income, concerning environmental laws and policies.

A trade system that ensures fair wages, safe working conditions, and sustainable practices for producers, particularly in developing countries.

The practice of selling off investments in companies involved in extracting fossil fuels like coal, oil, and gas as part of a strategy to reduce climate risk and support a low-carbon economy.

Emissions of greenhouse gases, including carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases, which trap heat in the Earth's atmosphere and contribute to climate change.

Refers to the structures, rules, and processes by which an organization is controlled and directed, often focusing on transparency, ethical behavior, and alignment with stakeholders' interests.

A bond specifically designed to fund projects with positive environmental or climate benefits, such as renewable energy projects or conservation efforts.

Financing investments that provide environmental benefits, supporting sustainable development.

A deceptive practice where a company falsely claims or exaggerates its environmental efforts to appear more sustainable than it actually is.

The process of identifying, preventing, and addressing adverse impacts on human rights that a company may cause, contribute to, or be directly linked to.

Investments made with the intention of generating a positive social or environmental impact alongside financial returns.

Ensuring all individuals feel valued, respected, and have access to the same opportunities regardless of their background or identity.

A framework ensuring that actions to address climate change consider the social and economic impacts on workers and communities, especially those in carbon-intensive sectors.

A method to assess the environmental impacts of a product, service, or process from its creation to disposal, considering all stages from raw material extraction to end-of-life management.

An economy that minimizes carbon dioxide and other GHG emissions, often through renewable energy, energy efficiency, and sustainable practices.

A process used by companies to determine which ESG factors are most relevant to their business and stakeholders, based on the risks and opportunities associated with them.

Measures taken to reduce the severity, seriousness, or harmful effects of climate change and other environmental impacts.

The world’s stocks of natural assets, including geology, soil, air, water, and all living things, which provide ecosystem services that support human life and economic activity.

Actions that protect, sustainably manage, or restore ecosystems while addressing societal challenges, such as climate change or biodiversity loss.

Achieving a balance between the amount of greenhouse gases emitted into the atmosphere and the amount removed, effectively resulting in no net increase in global GHG concentrations.

Compensating for emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases, though the EU Taxonomy focuses more on direct reduction rather than offsetting.

The excessive use of natural resources, such as overfishing or deforestation, which the Taxonomy aims to prevent through sustainable practices.

An international treaty aimed at limiting global warming to below 2°C, ideally to 1.5°C, by reducing greenhouse gas emissions.

Risks to a company or society posed by the physical impacts of climate change, such as extreme weather events, rising sea levels, and temperature changes.

Practices that reduce or eliminate the generation of pollutants, often through cleaner production technologies and efficient resource use.

Measures to reduce harmful emissions into air, water, and soil.

The process of converting waste materials into new materials and objects, a key activity promoted under the circular economy objective of the Taxonomy.

Energy sourced from natural processes that are continuously replenished, such as sunlight, wind, water (hydropower), and geothermal heat.

An investment approach that integrates ESG factors into decision-making, aiming for long-term, sustainable returns.

Categories of greenhouse gas emissions:

• Scope 1: Direct emissions from owned or controlled sources (e.g., company facilities).


• Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling.


• Scope 3: All other indirect emissions, such as those associated with the supply chain and product lifecycle.

The effect an organization’s activities have on the well-being of communities, often measured by its contributions to social causes, labor conditions, and community development.

The process of involving individuals or groups affected by an organization’s actions in decision-making.

The disclosure of ESG data by organizations, outlining their environmental, social, and governance performance.

Bonds that tie financial or structural characteristics to the issuer’s sustainability performance.

Farming practices that conserve resources, protect ecosystems, and enhance soil health.

A set of 17 global goals established by the United Nations to end poverty, protect the planet, and ensure peace and prosperity for all by 2030.

Forest management practices that maintain biodiversity, productivity, and regeneration capacity.

Managing a supply chain to optimize both environmental and social sustainability, ensuring ethical and eco-friendly practices across sourcing, production, and distribution.

Managing water and marine ecosystems responsibly to prevent depletion and degradation.

Criteria in the EU Taxonomy that define what qualifies as a sustainable economic activity, based on its contribution to environmental objectives.

Financial risks arising from the shift to a low-carbon economy, including regulatory changes, market shifts, and reputational damage.

Moving towards economic systems focused on resource efficiency and waste minimization.

Activities that contribute to environmental objectives but are not fully sustainable yet.

A business framework that includes social, environmental, and financial performance.

The ability of cities to absorb, recover, and prepare for future environmental, social, and economic shocks, such as climate change or natural disasters.

The percentage of total capacity used, particularly relevant in energy efficiency and resource management under the Taxonomy.

The full range of activities, from production to disposal, through which a product or service passes, often including sourcing, manufacturing, and distribution.

Reducing carbon emissions throughout the entire value chain of a product or service, from raw materials to end-use, a key focus for businesses aligning with the EU Taxonomy.

The processes involved in managing waste materials to reduce their environmental impact.

Measures to reduce the generation of waste at its source, which is promoted under the circular economy objective of the EU Taxonomy.

The responsible use and management of water to reduce consumption and waste, a crucial part of the Taxonomy’s objective on water protection.

The responsible management of water resources through conservation and sustainable practices.

The rehabilitation of wetland ecosystems, vital for carbon sequestration and biodiversity, and a focus of the EU Taxonomy in its ecosystem protection efforts.

Energy sources that produce no carbon dioxide emissions, such as wind, solar, and nuclear, aligning with the Taxonomy’s climate change mitigation goals.

Having no net release of GHGs into the atmosphere.