Ch. 2 Flashcards
Define sustainability.
humanity meeting its current needs without overburdening the natural environment or future generations
Define environmental sustainability.
Environmental sustainability means maintaining ecological integrity, preserving biodiversity, and maintaining the balance of natural systems (such as the global cli-mate), and it means that natural resources are consumed by humans at a rate less than that at which they can be replenished.
Define social sustainability
Social sustainability means that a minimum standard of basic necessities and human rights is afforded to all people, who have sufficient resources to keep them-selves, their families, and their communities healthy and secure.
Define economic sustainability.
Economic sustainability means having economic systems that are accessible to everyone and that help to spread and generate prosperity globally.
When was the first major United Nations meeting on environmental issues?
1972
Who first defined “sustainable development”?
the Brundtland Commission in 1987
What is corporate social responsibility?
corporate social responsibility (CSR), is when companies undertake social or environmental activities for the wider benefit of society
What does ESG stand for?
“E” referring to environment, “S” to social, and “G” to governance
Where did the term ESG originate?
In the financial section, and the term ESG was coined in a 2005 report by the UN Global Compact
Describe the E in ESG
a company’s relationship to climate change or to nature: Typical metrics include a company’s carbon dioxide emissions, water usage, or its impact on deforestation.
Describe the S in ESG
how a company treats its employees and manages relationships with suppliers and communities
Describe the G in ESG
a company’s leadership, including board composition, executive compensation, risk management, and other internal procedures
What is one important way that ESG scores can be used?
One important purpose is their use in screening companies for inclusion in ESG investment funds.
Name an important set of international sustainability goals
United Nations’ Sustainable Development Goals (SDGs), which are part of the 2030 Agenda
What are ecosystem services?
the benefits (directly quantifiable resources like timber production or less tangible services like spiritual values) ecosystems provide to humans
What are supporting ecosystem services?
fundamental conditions that enable the existence of all other services (e.g. species habitat and genetic diversity)
What are provisioning ecosystem services?
services that generate resources, such as freshwater and food, for society that can often be traded in markets.
What are regulating ecosystem services?
These services involve the regulation of valuable natural processes such as carbon sequestration and pollination.
What are cultural ecosystem services?
the non-material benefits and enjoyment humans derive from ecosystems
What is a natural capital?
a slightly wider view of resources than ecosystem services, incorporating the value of all the world’s natural assets, including geology and minerals
What is decoupling?
Decoupling is when organisations claim to fulfill stakeholders’ expectations for action on sustainability, without actually making any changes in what they do in practice.
What is attention deflection?
Attention deflection is when organisations hide unsustainable practices from stakeholder attention, prepare selective and inaccurate disclosures, make incomplete comparisons with other products and services, and use vague and irrelevant statements.
What is greenwishing? (not greenwashing)
well-intended efforts to tackle sustainability challenges, which may not make enough of a difference or encourage superficial changes when more structural ones are required
What are the 4 phases of life cycle assessments (LCA)?
- Goal and scope definition
- Inventory analysis
- Impact assessment
- Interpretation
Which group does research on corporate social responsibility and shares best practices on sustainability among its members?
The World Business Council for Sustainable Development (WBCSD). The Principles for Responsible Investment (PRI) group has played a similar role to the WBCSD for investors.
What is the Global Reporting Initiative (GRI) framework?
a framework through which companies can report on all sustainability related impacts, regardless of whether these are financially material to investors or not
Which frameworks allow companies to specifically report on those sustainability issues which are financially material to investors?
Sustainability Accounting Standards Board (SASB) and the newly formed International Sustainability Standards Board (ISSB)
