Glossary

Scope 3 emissions refer to the indirect greenhouse gas (GHG) emissions that occur throughout a company's value chain, beyond its direct operations and purchased energy. These emissions frequently account for more than 70% of an organization’s total carbon footprint, making them the most significant — yet most difficult — emissions to measure and manage.

Sustainability is the principle of meeting present needs without compromising the ability of future generations to meet theirs, balancing environmental, social, and economic priorities.

ESG (Environmental, Social, and Governance) is the framework that measures and discloses how companies manage risks and opportunities in these areas.

The two concepts overlap but are not interchangeable: sustainability is the vision, while ESG provides the structure, metrics, and accountability to turn that vision into measurable business outcomes.

Sustainability risk management is the process of identifying, assessing, and mitigating environmental, social, and governance (ESG) risks that could impact a company’s operations, reputation, and long-term value. It focuses on integrating sustainability into enterprise risk management and supply chain oversight.

Supply Chain Risk Management (SCRM) refers to the process of identifying, assessing, mitigating, and monitoring risks that could disrupt the flow of goods, services, information, or finances across an organization’s supply chain. It involves developing proactive strategies and controls to minimize potential impacts from safety incidents, ESG (Environmental, Social & Governance) non-compliance, weather and climate events, cyber threats, geopolitical instability, cross-border complications, logistical or supplier failures.

Sustainable sourcing (also called sustainable procurement or responsible sourcing) is the integration of environmental, social, and ethical criteria into purchasing decisions. It requires procurement teams to balance cost, quality, and delivery with supplier practices around labor rights, environmental stewardship, and governance integrity.

GRI, CDP, and SBTi are globally recognized ESG and climate disclosure frameworks. They help organizations measure, report, and improve sustainability performance — particularly emissions, climate risk, and value chain impacts — while giving procurement teams a structured way to evaluate supplier transparency and maturity.

ESG and sustainability compliance refer to an organization’s ability to meet all legal, regulatory, and industry requirements related to environmental, social, and governance (ESG) practices and sustainable operations. It ensures that both the company and its suppliers follow applicable laws, standards, and disclosure rules on topics such as greenhouse gas emissions, labor rights, diversity, and anti-corruption.

ESG regulations and standards are the laws, rules, and voluntary frameworks that govern how organizations disclose sustainability information, conduct environmental & human‑rights due diligence, and embed responsible procurement. They determine what data companies must collect and report, how they manage supply‑chain risks, and the consequences of falling short.

Learn what Corporate Social Responsibility (CSR) means, its history, core components, and how CSR functions in today’s sustainability and supply chain landscape.