Glossary:
29. Sustainability Strategy: How to develop a tailor-made strategy based on materiality
| Term | Definition |
|---|---|
Business model | Activity systems that create, deliver, capture and potentially destroy value. |
Consistency | The use of nature-compatible technologies and structures. |
Decoupling | The break of the link between 'environmental bads' and 'economic goods.' |
Efficiency | The use of less resources per service unit. |
Financial Materiality | A sustainability matter is material from a financial perspective if it triggers or may trigger material financial effects on the company. |
Impact Materiality | A sustainability matter is material from an impact perspective when it pertains to the company's material actual or potential, positive or negative impacts on people or the environment over the short-, medium- and long-term time horizons. |
Material Sustainability Matter | A sustainability matter is material if it meets the definition of impact materiality or financial materiality or both. |
Stakeholder | Those who can affect or be affected by the company. |
Sufficiency | The reduction of harmful consumption. |
Sustainability Matter | Sustainability matters encompass the consideration of various aspects, including environmental impact, social responsibility, human rights, and good governance practices. |
Sustainability-related impacts | The effect the company has or could have on the environment and people, including effects on their human rights, as a result of the company's activities or business relationships. The impacts can be actual or potential, negative or positive, short-term, medium or long-term, intended or unintended, and reversible or irreversible. Impacts indicate the company's contribution, negative or positive, to sustainable development. |
Sustainability-related opportunities | Uncertain environmental, social or governance events or conditions that, if they occur, could cause a potential material positive effect on the company's business model, or strategy on its capability to achieve its goals and targets and to create value, and therefore may influence its decisions and those of its business relationship partners with regard to sustainability matters. Like any other opportunity, sustainability-related opportunities are measured as a combination of an impact’s magnitude and the probability of occurrence. |
Sustainability-related risks | Uncertain environmental, social or governance events or conditions that, if they occur, could cause a potential material negative effect on the companies business model or strategy and on its capability to achieve its goals and targets and to create value, and therefore may influence its decisions and those of its business relationships with regard to sustainability matters. Like any other risks, sustainability-related risks are the combination of an impact’s magnitude and the probability of occurrence. |
Sustainability Reporting | The transparent disclosure of sustainability-related matters, similar to financial reporting |
Triple Bottom Line | A business concept that considers a company's social and environmental impact, along with its financial performance. |
