Learn the lingo

Sustainability reporting is full of abbreviations. Here is what they actually mean — in plain language.

VSME Standard

Voluntary Sustainability Reporting Standard for SMEs

A voluntary EU sustainability reporting standard for non-listed micro, small and medium-sized companies. It helps SMEs provide proportionate sustainability information to customers, banks and investors. efrag.org ↗

SME

Micro, Small and Medium-sized Enterprises

A micro, small or medium-sized company. Under EU accounting rules, size is assessed using employees, turnover and balance sheet total. Look at our pricing page to determine your company size. ec.europa.eu ↗

ESG

Environmental, Social and Governance

Environmental, social and governance factors used to describe how a company manages its impact on the environment, people and business conduct. investopedia.com ↗

EFRAG

European Reporting Advisory Group

The European advisory body that develops sustainability reporting standards and guidance. EFRAG published the VSME Standard to support proportionate sustainability reporting for SMEs. efrag.org ↗

CSRD

Corporate Sustainability Reporting Directive

The EU directive requiring many large and listed companies to report sustainability information. Because these companies need value chain data, SMEs may receive more sustainability data requests from customers and business partners. finance.ec.europa.eu ↗

SFDR

Sustainable Finance Disclosure Regulation

EU rules that require banks, asset managers and other financial firms to disclose how they handle sustainability risks. Their portfolio companies (often SMEs) are increasingly asked for matching data. finance.ec.europa.eu ↗

GHG Protocol

Greenhouse Gas Accounting Standard

A widely used global standard for measuring and reporting greenhouse gas emissions. It defines Scope 1 emissions from owned or controlled sources, Scope 2 emissions from purchased energy, and Scope 3 emissions from the wider value chain. ghgprotocol.org ↗

NACE

EU Economic Activity Classification

The EU classification system for economic activities. A company's NACE code helps identify what type of business it conducts and can be used to tailor sustainability questions to its activities. eurostat ↗