B Corporation (BCorp)
A certification for companies that meet high standards of social and environmental performance, accountability, and transparency. It is voluntary and applies to companies that choose to undergo the certification process.

Biodiversity
The variety of plant and animal life in ecosystems, which is essential for environmental stability and human well-being. It is protected through various regulations and policies but is not governed by a single standalone law.

Building Research Establishment Environmental Assessment Method (BREEAM)
A system used to assess and rate the sustainability performance of buildings. It evaluates factors such as energy use, materials, and environmental impact. It is voluntary but often required by clients, investors, or public authorities in construction projects.

Business Social Compliance Initiative (BSCI)
A system that helps companies improve working conditions in global supply chains. It focuses on labor rights, fair wages, and safe workplaces. This initiative is voluntary and used by companies that want to monitor and improve supplier conditions.

Carbon Border Adjustment Mechanism (CBAM)
A system that adds a carbon cost to certain imported goods to match EU climate standards and prevent “carbon leakage.” It ensures that imported products face similar emission costs as those produced in the EU. It is currently in a transitional phase and will become fully mandatory in 2026, applying to importers of high-emission goods such as steel, cement, and aluminum.

Carbon Disclosure Project (CDP)
A global platform that allows companies to disclose environmental data such as emissions, water use, and deforestation risks. It is widely used by investors. Participation is voluntary, but many companies are expected to report due to investor or customer pressure.

Carbon Footprint
The total amount of greenhouse gas emissions caused directly or indirectly by an entity, product, or activity. It is used to understand and reduce climate impact. It is not a regulation itself but is widely used within both voluntary and mandatory reporting frameworks.

Chinese Sectoral Act (China-specific industry regulations)
Refers to regulations in China that apply to specific industries, often covering environmental standards and production requirements. These regulations are in force in China and apply to companies operating within the relevant sectors in that market.

Circular Economy
An economic model focused on minimizing waste by reusing, repairing, and recycling materials. It contrasts with the traditional linear model. It is a policy goal supported by many EU regulations but not a single mandatory law.

Climate Risk (Physical and Transition Risk)
Refers to risks from climate change, including physical impacts like extreme weather and transition risks from policy or market changes. These risks must be disclosed under frameworks such as CSRD and TCFD for companies in scope.

Corporate Sustainability Due Diligence Directive (CSDDD)
Requires companies to identify and address environmental and human rights risks in their operations and supply chains. It pushes businesses to take responsibility beyond their direct activities. This directive is not yet fully in force but is expected to in phases 2027- 2029, and it will mainly apply to large EU companies and non-EU companies with significant operations in the EU.

Corporate Sustainability Reporting Directive (CSRD)
Requires companies to disclose detailed information about their environmental and social impacts. It improves transparency and helps investors compare sustainability performance. This directive is already in force and is being phased in between 2024 and 2028, applying to large companies, listed SMEs (at a later stage), and some non-EU companies operating in the EU.

Critical Raw Materials Act (CRMA)
Aims to secure access to critical materials like lithium and rare earths that are essential for green technologies. It also strengthens supply chain resilience within the EU. This act was adopted in May 2024 and mainly applies to strategic industries and large companies involved in critical raw material supply chains.

Decarbonization
The process of reducing carbon emissions across industries and systems, often by switching to cleaner energy sources. It is driven by a mix of regulations, market demands, and company strategies rather than a single law.

Double Materiality Assessment
A process used to identify which sustainability issues are most important by considering both financial impact and impact on society and the environment. This assessment is mandatory under the CSRD and applies to companies that fall within its scope.

Emissions Trading System (ETS)
A market-based system where companies buy and sell emission allowances. It creates a financial incentive to reduce greenhouse gas emissions. This system is in force and applies mainly to energy-intensive industries, power producers, and aviation, with expansion to additional sectors over time.

Energy Efficiency
Using less energy to perform the same task, helping reduce costs and emissions. It is a key strategy in sustainability. It is often required through various regulations and standards and applies broadly across industries.

Environmental Product Declaration (EPD)
A standardized and verified document that communicates the environmental impact of a product. It is typically based on life cycle assessment data.  It is voluntary but commonly required in industries like construction and in public procurement.

Environmental, Social, and Governance (ESG)
A framework used to evaluate a company’s sustainability performance across environmental, social, and governance factors. It is widely used by investors and stakeholders. It is not a regulation itself but is embedded in many mandatory frameworks and investment decisions.

EU Deforestation Regulation (EUDR)
Prevents companies from selling products in the EU that are linked to deforestation. Businesses must prove their supply chains do not contribute to forest loss. This regulation is in force with phased implementation starting between 2024 and 2025, and it applies to companies trading specific commodities like wood, soy, cocoa, beef, and coffee.

EU Taxonomy for Sustainable Activities (EU Taxonomy)
A classification system that defines which economic activities are environmentally sustainable. It helps guide investments toward greener projects. This framework is in force and applies mainly to large companies and financial market participants required to disclose sustainability information.

European Sustainability Reporting Standards (ESRS)
These standards define what sustainability information companies must report under EU law. They ensure consistency and comparability across companies. They are in force through the CSRD and are mandatory for companies that fall within the scope of that directive.

Extended Producer Responsibility (EPR)
A principle that makes producers responsible for the full lifecycle of their products, especially when they become waste. It encourages better product design and recycling systems. It is already in force in many countries, including across the EU, and applies to companies placing products on the market.

Fair Wear Foundation – Verifies good labor conditions in garment supply chains.

Fairtrade (Fairtrade International) – Ensures producers receive fair prices, decent working conditions, and sustainability premiums.

FSC (Forest Stewardship Council) – Ensures wood and paper products come from responsibly managed forests.

General Product Safety Regulation (GPSR)
Ensures that all consumer products sold in the EU are safe to use. It strengthens rules for recalls, online sales, and product traceability. This regulation has been in force since December 2024 and applies to all businesses selling consumer products in the EU, including online marketplaces.

Global Recycled Standard (GRS)
A certification that verifies recycled content in products and ensures responsible environmental and social practices. It is voluntary and mainly used in industries such as textiles and materials.

Global Reporting Initiative (GRI)
A widely used framework (since 1997) that helps organizations report their environmental, social, and economic impacts. It is designed to improve transparency and accountability. This framework is voluntary and used by companies of all sizes across the world.

Greenhouse Gas Protocol (GHG Protocol)
The most widely used standard for measuring greenhouse gas emissions. It provides guidance for calculating Scope 1, 2, and 3 emissions. It is voluntary but widely used and often required indirectly through regulations and reporting frameworks.

Greenwashing
Occurs when a company falsely or misleadingly presents its products or practices as environmentally friendly. It can damage trust and mislead consumers. It is increasingly regulated under EU consumer protection and sustainability laws, and companies can face penalties for misleading claims.

GRS (Global Recycled Standard) – Verifies recycled content and responsible production practices.

Human Rights Due Diligence (HRDD)
A process for identifying, preventing, and addressing human rights risks in business operations and supply chains. It is becoming increasingly important in global business practices. It is becoming mandatory under regulations like the CDDD and mainly applies to large companies.

IFRS Sustainability Disclosure Standards (IFRS S1 & S2)
Provide guidance on how companies should report sustainability and climate-related financial information. They are designed to help investors understand risks and opportunities. These standards are newly introduced and become mandatory only in jurisdictions that choose to adopt them.

International Organization for Standardization (ISO)
Develops international standards to ensure quality, safety, and efficiency across industries. Many standards (such as ISO 14001) help organizations manage environmental impacts. These standards are voluntary and apply to organizations worldwide that choose to implement them.

International Sustainability Standards Board (ISSB)
A global body that develops standards for sustainability-related financial disclosures. Its goal is to create a consistent global baseline for reporting. These standards are active but only mandatory in countries that adopt them into national regulation.

ISO certifications (from the International Organization for Standardization) are internationally recognized standards that verify an organization consistently follows structured, audited management systems to ensure quality, safety, efficiency, and environmental responsibility across its operations.

Just Transition
Ensures that the shift to a low-carbon economy is fair and inclusive for workers and communities. It focuses on social impacts of climate policies. It is a guiding principle rather than a binding regulation but is increasingly reflected in policy frameworks.

Life Cycle Assessment (LCA)
A method used to evaluate the environmental impact of a product throughout its entire life cycle, from raw materials to disposal. It helps identify areas for improvement. This tool is voluntary but often required indirectly in product standards, environmental declarations, and procurement processes.

Net Zero
A state where greenhouse gas emissions are balanced by removing emissions from the atmosphere. It is a key objective for tackling climate change. It is not a regulation by itself but is often included in corporate strategies and government commitments.

OECD Due Diligence Guidance (OECD Guidelines)
Provides recommendations for responsible business conduct, including managing environmental and human rights risks. It is often used as a reference for best practices. These guidelines are voluntary but are increasingly reflected in mandatory regulations such as the CDDD.

Omnibus (EU Omnibus Simplification Package)
A set of EU proposals aimed at simplifying and aligning sustainability regulations. It seeks to reduce administrative burden while maintaining environmental goals. The main frameworks included are: CSRD, CSDDD, Taxonomy, and CBAM. The This initiative is still under development and will affect companies that are subject to multiple EU sustainability regulations.

Packaging and Packaging Waste Regulation (PPWR)
An EU law that aims to reduce packaging waste and make all packaging more recyclable or reusable. It also sets targets for reducing unnecessary packaging and improving waste management systems. This regulation is not yet fully in force but is expected to be in August 2026, and it will apply to all companies placing packaging on the EU market.

Rainforest Alliance – Promotes sustainable farming with environmental protection and improved livelihoods.

RCS (Recycled Claim Standard) – Tracks recycled materials through the supply chain.

Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH)
Controls the use of chemicals to protect human health and the environment. Companies must assess and manage risks related to substances they produce or use. This regulation is already in force and has been since 2007 applies to all companies manufacturing, importing, or using chemicals in the EU. The REACH list is continuously updated.

Renewable Energy
Energy from naturally replenished sources such as wind, solar, and hydropower. It reduces reliance on fossil fuels. It is promoted through regulations and incentives but is not a regulation itself.

Science Based Targets (SBTs)
Climate targets set by companies that align with scientific recommendations to limit global warming. They help ensure credible emission reductions. These targets are voluntary but increasingly expected by investors, customers, and regulators.

Scope 1, 2, and 3 Emissions (Scope 1–3)
A classification of greenhouse gas emissions covering direct emissions, indirect energy emissions, and emissions across the value chain. It provides a complete picture of climate impact. These categories are required under many frameworks and regulations, including CSRD, and apply broadly to companies reporting emissions.

Sedex Members Ethical Trade Audit (SMETA)
An audit methodology used to assess ethical practices in supply chains, including labor, health and safety, and business ethics. It is voluntary but often required by customers or business partners as part of supply chain management.

Supply Chain Transparency
Refers to openly sharing information about suppliers and production processes. It helps companies identify risks and build trust with stakeholders. It is increasingly required under regulations such as CSRD and EUDR and applies to many companies operating in global supply chains.

Sustainable Development Goals (SDGs)
A set of 17 global goals created by the United Nations to address challenges like poverty, inequality, and climate change. They provide a shared roadmap for sustainability. These goals are voluntary and used by governments, organizations, and companies worldwide.

Sustainable Finance Disclosure Regulation (SFDR)
Requires financial institutions to disclose how they consider sustainability risks in their investment decisions. It increases transparency for investors. This regulation is already in force and applies to asset managers, financial advisors, and other financial market participants.

Sustainable Procurement
Refers to purchasing goods and services in a way that considers environmental and social impacts. It helps reduce risks and improve supply chain responsibility. It is often required indirectly under regulations like CSRD and CDDD and applies to many organizations.

Task Force on Climate-related Financial Disclosures (TCFD)
A framework that helps companies disclose climate-related risks and opportunities. It focuses on governance, strategy, risk management, and metrics. It is generally voluntary but has been made mandatory in some countries and is integrated into other regulations like CSRD.

UN Global Compact (UNGC)
A United Nations initiative encouraging companies to follow principles on human rights, labor, environment, and anti-corruption. Companies commit publicly to improving their practices. Participation is voluntary and open to companies worldwide.

Voluntary Sustainability Reporting Standard for SMEs (VSME)
A simplified framework that helps small and medium-sized enterprises report on sustainability in a manageable way. It reduces complexity compared to larger frameworks. It is voluntary and designed for SMEs that are not directly required to comply with CSRD but still want to report sustainability information.

WFTO (World Fair Trade Organization) – Certifies entire businesses that follow fair trade principles.

Note that this document was formatted by me, Alexandra Nash, in 2026. This is not an official or legal site, so make sure that you always contact/check with the correct body to find out exactly what pertains to you.