Sustainability and ESG Projects Glossary
- Michelle M
- Aug 31
- 7 min read
Sustainability and Environmental, Social, and Governance (ESG) initiatives are transforming the way organizations run projects. No longer are projects judged only on cost, schedule, and deliverables today they are measured by their long-term impact on society, the planet, and corporate ethics.
Sustainability requires balancing economic growth with social equity and environmental protection, while ESG provides a framework to measure these efforts. This glossary of 100 terms defines the essential language of sustainability and ESG projects. Whether you are a project manager, executive, or sustainability professional, these terms will help you navigate the complex landscape of responsible business and future-focused project delivery.
1. Sustainability
Sustainability is the practice of meeting today’s needs without jeopardizing the ability of future generations to meet theirs. It emphasizes long-term balance between environmental, social, and economic priorities.
2. ESG (Environmental, Social, Governance)
ESG is a framework to evaluate how organizations perform across environmental stewardship, social responsibility, and ethical governance, shaping stakeholder trust and investment decisions.
3. Triple Bottom Line
The triple bottom line measures success across three areas: people, planet, and profit. It shifts focus from purely financial gain to sustainable impact.
4. Circular Economy
The circular economy reduces waste by reusing, recycling, and extending product lifecycles, moving away from the “take, make, dispose” model.
5. Net Zero
Net zero refers to achieving a balance between greenhouse gases emitted and removed, often targeted through energy efficiency and carbon offsetting.
6. Carbon Footprint
This measures the total emissions of greenhouse gases caused directly or indirectly by activities, usually expressed in tons of CO₂ equivalent.
7. Carbon Neutrality
Carbon neutrality means achieving net zero carbon emissions by reducing emissions and investing in offsets.
8. Renewable Energy
Energy generated from sources that naturally replenish, such as solar, wind, hydro, and geothermal, reducing reliance on fossil fuels.
9. Greenwashing
A deceptive practice where organizations exaggerate or falsify sustainability claims, misleading stakeholders about their actual impact.
10. Social Responsibility
The ethical duty of organizations to act in ways that benefit society, including fair labor, diversity, and philanthropy.
11. Governance
The system of rules, processes, and accountability that ensures an organization acts ethically, transparently, and responsibly.
12. Life Cycle Assessment (LCA)
A comprehensive method for analyzing the environmental impacts of a product across its entire life cycle, from raw materials to disposal.
13. Sustainable Development Goals (SDGs)
A set of 17 UN goals guiding global action to eradicate poverty, reduce inequality, and address climate and sustainability challenges by 2030.
14. Stakeholder Engagement
The process of involving those affected by or interested in a project to ensure diverse perspectives shape sustainable outcomes.
15. Materiality Assessment
Identifying which ESG issues matter most to stakeholders and long-term success, ensuring resources target the most significant impacts.
16. Climate Risk
The potential threats businesses face due to climate change, including operational disruptions, regulatory challenges, and reputational harm.
17. Biodiversity
The variety of species and ecosystems in nature, which sustainable projects aim to protect and restore.
18. Green Building
Construction practices that prioritize energy efficiency, resource conservation, and reduced ecological impact.
19. LEED Certification
An internationally recognized standard for environmentally responsible buildings, measuring energy efficiency, design, and impact.
20. ESG Reporting
The disclosure of a company’s ESG strategies and performance to stakeholders, investors, and regulators.
21. GRI (Global Reporting Initiative)
A framework providing standardized metrics for organizations to report sustainability performance.
22. SASB (Sustainability Accounting Standards Board)
Industry-specific standards that help organizations disclose financially material ESG data.
23. TCFD (Task Force on Climate-Related Financial Disclosures)
Recommendations to guide companies in reporting climate-related financial risks and opportunities.
24. Scope 1 Emissions
Direct emissions from company-owned sources, such as vehicles and facilities.
25. Scope 2 Emissions
Indirect emissions from purchased energy like electricity and heat.
26. Scope 3 Emissions
All other indirect emissions from the value chain, including suppliers and customers.
27. Energy Efficiency
Using less energy to achieve the same output, minimizing waste and costs.
28. Waste Management
Processes that reduce, reuse, and recycle materials, preventing harm to ecosystems.
29. Sustainable Supply Chain
A supply chain designed to reduce environmental impact and promote ethical labor practices.
30. Fair Trade
A certification ensuring producers in developing regions receive fair compensation and ethical conditions.
31. Diversity and Inclusion (D&I)
Policies that foster equity and representation across different groups in workplaces and communities.
32. Human Rights Policy
Corporate commitments to protect the rights of individuals in all operations and supply chains.
33. Ethical Sourcing
Acquiring materials in ways that respect human rights, communities, and ecosystems.
34. Water Stewardship
Managing water responsibly to preserve ecosystems and ensure equitable access.
35. Climate Adaptation
Adjusting processes, infrastructure, and policies to reduce vulnerability to climate impacts.
36. Green Bonds
Bonds that fund projects with measurable environmental benefits, such as clean energy or conservation.
37. Social Bonds
Debt instruments financing projects with social outcomes like healthcare and education.
38. Impact Investing
Investing capital to generate social and environmental impact alongside financial returns.
39. Corporate Social Responsibility (CSR)
A voluntary commitment by companies to integrate sustainability and ethics into operations.
40. Ethical Governance
Decision-making guided by transparency, fairness, and accountability.
41. Renewable Resources
Resources that naturally regenerate, such as timber, fish, and solar energy.
42. Non-Renewable Resources
Finite resources like oil, gas, and coal, which sustainability projects aim to phase out.
43. Carbon Offset
An investment in activities like reforestation or clean energy that compensates for emissions.
44. Emissions Trading
A market-based system where companies buy and sell carbon credits to meet emission caps.
45. Paris Agreement
A global treaty to limit global warming to below 2°C, requiring national commitments.
46. Just Transition
A framework ensuring workers and communities are supported in the move to a low-carbon economy.
47. Green Infrastructure
Infrastructure designed to deliver environmental benefits, like rain gardens or green roofs.
48. Eco-Efficiency
Producing more goods and services with fewer resources and less environmental harm.
49. Social Impact Assessment
Evaluating how a project affects communities, equity, and human well-being.
50. Environmental Impact Assessment (EIA)
A study to predict and mitigate a project’s environmental consequences.
51. Climate Mitigation
Strategies to reduce greenhouse gas emissions and slow global warming.
52. Decarbonization
The process of reducing carbon intensity across operations and energy systems.
53. Green Procurement
Purchasing products and services with reduced environmental impacts.
54. Eco-Labeling
Labels that certify a product meets environmental sustainability standards.
55. Corporate Citizenship
The recognition that companies must contribute positively to society.
56. Sustainable Finance
Financing strategies that integrate ESG considerations into investment decisions.
57. Social Equity
Ensuring all people have equal access to opportunities, regardless of background.
58. Transparency
Clear, honest disclosure of ESG activities to stakeholders.
59. Accountability
Holding organizations responsible for sustainability commitments.
60. Resilience
The capacity of systems to recover from environmental or social shocks.
61. Natural Capital
The world’s stock of natural resources that provide ecosystem services.
62. Green Technology
Technological innovations designed to reduce environmental harm.
63. Climate Disclosure
Reporting the risks, impacts, and strategies related to climate change.
64. Community Development
Projects that improve quality of life and opportunities for local populations.
65. Stakeholder Capitalism
An approach where companies serve not only shareholders but all stakeholders.
66. Responsible Investment
Investment strategies that integrate ESG analysis into decision-making.
67. Corporate Ethics
Principles guiding organizations to act with integrity and fairness.
68. Sustainable Urbanization
Planning cities with reduced emissions, efficient transport, and inclusive housing.
69. Eco-Innovation
Innovations that improve sustainability while driving economic growth.
70. Renewable Portfolio Standard (RPS)
A regulation requiring utilities to source a portion of power from renewables.
71. Low-Carbon Economy
An economy powered by renewable energy and efficiency rather than fossil fuels.
72. Social Governance
The oversight of ethical practices in managing people, communities, and equity.
73. Environmental Justice
Ensuring all people, especially marginalized groups, are protected from environmental harm.
74. Net Positive Impact
Going beyond neutral impact by actively improving environmental and social systems.
75. Ethical Leadership
Leaders guiding organizations with integrity, fairness, and sustainability values.
76. Green Logistics
Sustainable practices in transport, warehousing, and supply chain activities.
77. Corporate Accountability
The obligation of companies to take responsibility for their actions and outcomes.
78. Sustainable Consumption
Using goods and services in ways that reduce waste and environmental harm.
79. Ethical Investment
Investing in companies and projects that align with ethical and ESG values.
80. Green Certification
Recognition that a product, service, or project meets sustainability criteria.
81. Circular Supply Chain
A supply chain designed for product reuse, recycling, and extended lifespans.
82. Environmental Management System (EMS)
A structured approach for organizations to monitor and improve environmental performance.
83. CSR Reporting
Reports highlighting a company’s initiatives in social responsibility.
84. Natural Resource Management
The sustainable management of natural assets like forests, water, and minerals.
85. Social Enterprise
Organizations created to address social or environmental issues while remaining financially viable.
86. Climate Neutral
Operating without contributing to climate change through balanced emissions.
87. Fossil Fuel Divestment
Withdrawing investments from fossil fuel industries to promote cleaner energy.
88. Green Supply Chain Management
Integrating sustainability into procurement, logistics, and product lifecycle decisions.
89. Biodiversity Net Gain
Leaving biodiversity in a better state after development projects.
90. Corporate Governance
Structures and processes ensuring fairness, accountability, and transparency in companies.
91. Philanthropy
Voluntary donations and contributions made to support social causes.
92. Renewable Transition
The global shift from fossil fuels to renewable energy systems.
93. Ethical Compliance
Adhering to legal and ethical standards in ESG operations.
94. Impact Measurement
Assessing and quantifying the social and environmental outcomes of projects.
95. Global Compact
A UN initiative encouraging companies to adopt sustainable and socially responsible policies.
96. Environmental Stewardship
Caring for and responsibly managing natural environments.
97. Community Engagement
Collaborating with local populations to align projects with their needs and goals.
98. Responsible Innovation
Developing new technologies with sustainability and ethics in mind.
99. Social License to Operate
The acceptance of a company’s project by communities and stakeholders.
100. Green Economy
An economy focused on sustainability, equity, and low environmental impact.
Sustainability and ESG Projects Glossary
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