ESG Glossary 2026: 50 Terms Every Executive Must Know
Last updated: 10 Jun 2026
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ESG Glossary 2026: 50 Terms Every Executive Must Know
ESG Glossary is the foundation tool every executive needs in 2026. Words like ESG, Net Zero, CBAM, and HRDD appear in board meetings so often that many executives admit they're confused. This ESG Glossary lists 50 essential terms, ranked by priority, not alphabetically.
ESG Glossary Tier 1: Must Know Now (10 terms)
These ESG Glossary terms appear in nearly every sustainability meeting. Not knowing them means falling behind.
1. ESG: Environmental, Social, Governance. The framework investors worldwide use to evaluate organizational sustainability impact across three dimensions.
2. Net Zero: Goal of net-zero greenhouse gas emissions. Reduce as much as possible, offset the rest. Thailand targets Net Zero by 2050.
3. Carbon Footprint: Volume of GHG emissions from activities, products, or organizations. Measured in tCO2e (tonnes CO2 equivalent).
4. Scope 1, 2, 3: GHG emission categories. Scope 1 (direct from organization), Scope 2 (from energy use), Scope 3 (Supply Chain emissions).
5. CBAM: Carbon Border Adjustment Mechanism. EU's carbon border tax, fully effective 2026.
6. SBTi: Science-Based Targets initiative. Framework for science-based carbon reduction aligned with Paris Agreement.
7. Materiality: ESG issues that are 'material' to the organization and stakeholders. Foundation of ESG reporting and strategy.
8. Double Materiality: Considering Financial Materiality (ESG impact on company) and Impact Materiality (company impact on world) together.
9. GRI: Global Reporting Initiative. The world's most widely used sustainability reporting standard.
10. FTSE Russell ESG Score: ESG scoring system that SET is adopting to replace SET ESG Ratings.
ESG Glossary Tier 2: Learn Within 3 Months (15 terms)
11. IFRS S1: ISSB sustainability reporting standard covering general ESG topics.
12. IFRS S2: ISSB standard specific to Climate-related Disclosures.
13. ISSB: International Sustainability Standards Board, creator of IFRS S1 and S2.
14. TCFD: Task Force on Climate-related Financial Disclosures framework.
15. HRDD: Human Rights Due Diligence per UN Guiding Principles.
16. CSDDD: EU's new Corporate Sustainability Due Diligence Directive on HRDD.
17. CSRD: EU's Corporate Sustainability Reporting Directive.
18. DJSI: Dow Jones Sustainability Indices, global sustainability benchmark.
19. EcoVadis: Global Supply Chain sustainability assessment system. Levels: Bronze, Silver, Gold, Platinum.
20. MSCI ESG Rating: MSCI's ESG ranking from AAA to CCC.
21. CDP: Carbon Disclosure Project platform for Climate data disclosure.
22. ISO 14064: Standard for measuring and reporting organizational GHG emissions.
23. ISO 14067: Standard for product Carbon Footprint.
24. T-VER: Thailand Voluntary Emission Reduction Program. Thailand's domestic carbon credit scheme.
25. GHG Inventory: Organizational greenhouse gas accounting.
ESG Glossary Tier 3: For ESG Leaders (15 terms)
26. BIA: Business Impact Analysis in BCM process.
27. BCM: Business Continuity Management system.
28. ERM: Enterprise Risk Management.
29. ISO 22301: International BCM standard.
30. COSO ERM 2017: Widely-used ERM framework.
31. Stakeholder Engagement: Engagement with stakeholders.
32. Greenwashing: Exaggerated or false ESG claims without supporting evidence.
33. Just Transition: Fair transition to low-carbon economy.
34. Climate Risk: Includes Physical Risk and Transition Risk.
35. Carbon Pricing: Includes Carbon Tax and Emission Trading Scheme.
36. Sustainable Finance: Green Bonds, Sustainability-linked Loans, etc.
37. Net Positive: Creating more positive than negative impact (beyond Net Zero).
38. Circular Economy: Resource-efficient economic model minimizing waste.
39. SDGs: UN's 17 Sustainable Development Goals.
40. Carbon Removal Credits (CDR): Credits from removing carbon from atmosphere.
ESG Glossary Tier 4: Specialist Terms (10 terms)
41. Embedded Emissions: GHG emissions embedded in products. Critical for CBAM.
42. PCAF: Partnership for Carbon Accounting Financials.
43. Scope 4: Avoided Emissions, emissions avoided through products/services.
44. Insetting: Reducing carbon within Supply Chain vs buying external credits.
45. Transition Plan: Detailed, measurable plan for Net Zero transition.
46. Internal Carbon Pricing: Internal carbon pricing for investment decisions.
47. TNFD: Taskforce on Nature-related Financial Disclosures.
48. Biodiversity Net Gain: Target of net biodiversity increase from activities.
49. Climate Adaptation: Adapting to climate change impacts.
50. Materiality Threshold: Threshold for determining material topics.
Using This ESG Glossary
Save this ESG Glossary as a reference for meetings and ESG report reading.
Practice Tier 1 terms in daily conversation first. Move to Tier 2 when you understand the bigger picture. Learn Tier 3 and 4 when leading or presenting.
Understanding the ESG Glossary isn't the end. It's the start of better decisions.
Need More Depth? Consult ESG PRO Experts
The ESG PRO team offers cheat sheets, templates, and training workshops to help your team master the ESG Glossary fast and apply it in practice. Free consultation, no cost.
Call 092-834-0989 or email contact@esgprothai.com
ESG Glossary is the foundation tool every executive needs in 2026. Words like ESG, Net Zero, CBAM, and HRDD appear in board meetings so often that many executives admit they're confused. This ESG Glossary lists 50 essential terms, ranked by priority, not alphabetically.
ESG Glossary Tier 1: Must Know Now (10 terms)
These ESG Glossary terms appear in nearly every sustainability meeting. Not knowing them means falling behind.
1. ESG: Environmental, Social, Governance. The framework investors worldwide use to evaluate organizational sustainability impact across three dimensions.
2. Net Zero: Goal of net-zero greenhouse gas emissions. Reduce as much as possible, offset the rest. Thailand targets Net Zero by 2050.
3. Carbon Footprint: Volume of GHG emissions from activities, products, or organizations. Measured in tCO2e (tonnes CO2 equivalent).
4. Scope 1, 2, 3: GHG emission categories. Scope 1 (direct from organization), Scope 2 (from energy use), Scope 3 (Supply Chain emissions).
5. CBAM: Carbon Border Adjustment Mechanism. EU's carbon border tax, fully effective 2026.
6. SBTi: Science-Based Targets initiative. Framework for science-based carbon reduction aligned with Paris Agreement.
7. Materiality: ESG issues that are 'material' to the organization and stakeholders. Foundation of ESG reporting and strategy.
8. Double Materiality: Considering Financial Materiality (ESG impact on company) and Impact Materiality (company impact on world) together.
9. GRI: Global Reporting Initiative. The world's most widely used sustainability reporting standard.
10. FTSE Russell ESG Score: ESG scoring system that SET is adopting to replace SET ESG Ratings.
ESG Glossary Tier 2: Learn Within 3 Months (15 terms)
11. IFRS S1: ISSB sustainability reporting standard covering general ESG topics.
12. IFRS S2: ISSB standard specific to Climate-related Disclosures.
13. ISSB: International Sustainability Standards Board, creator of IFRS S1 and S2.
14. TCFD: Task Force on Climate-related Financial Disclosures framework.
15. HRDD: Human Rights Due Diligence per UN Guiding Principles.
16. CSDDD: EU's new Corporate Sustainability Due Diligence Directive on HRDD.
17. CSRD: EU's Corporate Sustainability Reporting Directive.
18. DJSI: Dow Jones Sustainability Indices, global sustainability benchmark.
19. EcoVadis: Global Supply Chain sustainability assessment system. Levels: Bronze, Silver, Gold, Platinum.
20. MSCI ESG Rating: MSCI's ESG ranking from AAA to CCC.
21. CDP: Carbon Disclosure Project platform for Climate data disclosure.
22. ISO 14064: Standard for measuring and reporting organizational GHG emissions.
23. ISO 14067: Standard for product Carbon Footprint.
24. T-VER: Thailand Voluntary Emission Reduction Program. Thailand's domestic carbon credit scheme.
25. GHG Inventory: Organizational greenhouse gas accounting.
ESG Glossary Tier 3: For ESG Leaders (15 terms)
26. BIA: Business Impact Analysis in BCM process.
27. BCM: Business Continuity Management system.
28. ERM: Enterprise Risk Management.
29. ISO 22301: International BCM standard.
30. COSO ERM 2017: Widely-used ERM framework.
31. Stakeholder Engagement: Engagement with stakeholders.
32. Greenwashing: Exaggerated or false ESG claims without supporting evidence.
33. Just Transition: Fair transition to low-carbon economy.
34. Climate Risk: Includes Physical Risk and Transition Risk.
35. Carbon Pricing: Includes Carbon Tax and Emission Trading Scheme.
36. Sustainable Finance: Green Bonds, Sustainability-linked Loans, etc.
37. Net Positive: Creating more positive than negative impact (beyond Net Zero).
38. Circular Economy: Resource-efficient economic model minimizing waste.
39. SDGs: UN's 17 Sustainable Development Goals.
40. Carbon Removal Credits (CDR): Credits from removing carbon from atmosphere.
ESG Glossary Tier 4: Specialist Terms (10 terms)
41. Embedded Emissions: GHG emissions embedded in products. Critical for CBAM.
42. PCAF: Partnership for Carbon Accounting Financials.
43. Scope 4: Avoided Emissions, emissions avoided through products/services.
44. Insetting: Reducing carbon within Supply Chain vs buying external credits.
45. Transition Plan: Detailed, measurable plan for Net Zero transition.
46. Internal Carbon Pricing: Internal carbon pricing for investment decisions.
47. TNFD: Taskforce on Nature-related Financial Disclosures.
48. Biodiversity Net Gain: Target of net biodiversity increase from activities.
49. Climate Adaptation: Adapting to climate change impacts.
50. Materiality Threshold: Threshold for determining material topics.
Using This ESG Glossary
Save this ESG Glossary as a reference for meetings and ESG report reading.
Practice Tier 1 terms in daily conversation first. Move to Tier 2 when you understand the bigger picture. Learn Tier 3 and 4 when leading or presenting.
Understanding the ESG Glossary isn't the end. It's the start of better decisions.
Need More Depth? Consult ESG PRO Experts
The ESG PRO team offers cheat sheets, templates, and training workshops to help your team master the ESG Glossary fast and apply it in practice. Free consultation, no cost.
Call 092-834-0989 or email contact@esgprothai.com
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