Guidelines for sustainability and responsibility reporting are full of acronyms, and someone unfamiliar with the subject can easily get tangled up in them. In this article, we’ll explain the most common acronyms in sustainability reporting.

ESG

Environmental, Social, Governance. An acronym that describes the three main areas of sustainability reporting: Environment, Social Responsibility, and Governance. Commonly used as a general term for sustainability reporting.

ESRS

European Sustainability Reporting Standards. EU sustainability reporting standards that companies must follow when reporting on their sustainability activities. ESR standards guide the sustainability reporting.

CSRD

Corporate Sustainability Reporting Directive. An EU directive that requires large, publicly listed, companies to report on their sustainability in a standardized way (in accordance with the ESRS). CSRD creates a framework for ESG data reporting and transparent benchmarking.

EFRAG

European Financial Reporting Advisory Group. A European expert body that develops technical guidance and drafts on sustainability reporting for SMEs for the European Commission.

GHG Protocol

GHG refers to greenhouse gases such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O), which contribute to global warming. The GHG Protocol is the internationally recognized standard for measuring and reporting corporate greenhouse gas emissions. It divides emissions into three categories:

• Scope 1: Direct emissions from a company’s own operations (e.g., fuel combustion).
• Scope 2: Indirect emissions from purchased energy, such as electricity and heating.
• Scope 3: Other indirect emissions from across the value chain, such as transportation, business travel, and suppliers.

VSME

Voluntary Sustainability Reporting Standard for Small and Medium-Sized Enterprises. A voluntary sustainability reporting standard for SMEs, developed by EFRAG to simplify reporting for smaller non-listed companies. VSME is compatible with the CSRD and ESRS, making it particularly suitable for companies whose customers or other stakeholders require sustainability data from members of their value chain.

Aila’s reporting tool is based on the VSME standard.

It includes both the Basic and the Comprehensive module. With it, filling out a sustainability report in line with the standard is easy. Check it out and start using it today!