ESG glossary
Concise definitions of 18 of the most common terms you'll meet in the SBA questionnaire and VSME report.
EU Corporate Sustainability Reporting Directive (2022/2464). Replaces the older NFRD and substantially broadens the obligation to report ESG data across European companies. After the 2025 Omnibus package, however, the directly-obliged scope in Slovakia narrowed to around 20 entities (banks, insurers, listed companies).
Analysis that assesses ESG topics from two angles: 1) how the company affects environment and society (impact materiality), and 2) how ESG factors financially affect the company (financial materiality). It's the starting point for the entire CSRD report — defining which topics to report on.
Specific reporting standards prepared by EFRAG for CSRD. Divided into general (ESRS 1, 2), environmental (E1–E5), social (S1–S4) and governance (G1).
A 2025 EU package of regulatory amendments that, among other things, narrowed the scope of CSRD-obliged entities. Companies with fewer than 1000 employees are exempted from direct reporting, which in Slovakia reduced the number of obliged firms from hundreds to ~20.
EU classification system defining which economic activities are "environmentally sustainable". Banks and investors use EU Taxonomy alignment when deciding on green loans and investments.
The most widely used methodology for calculating an organisation's carbon footprint. Defines how to calculate Scope 1, 2, and 3 emissions. Developed by World Resources Institute and WBCSD.
A process where public institutions consider environmental criteria alongside price and quality when procuring. For suppliers to public clients, meeting GPP criteria is increasingly critical.
The most widely used voluntary global standard for sustainability reporting. GRI Standards have a modular structure (universal, sector, topic modules). Many Slovak companies had been using GRI reports long before CSRD.
International standard for environmental management systems. Defines requirements for company policy, objectives, processes and documentation related to environmental protection. The most common ESG certificate in Slovakia.
International standard for occupational health and safety management systems. Replaces the older OHSAS 18001. In the Slovak ESG questionnaire context it means the company has a documented system for accident and occupational disease prevention.
Standard for systematic management and improvement of energy consumption. Often combined with the mandatory energy audit per Act 321/2014 on energy efficiency.
European statistical classification of economic activities. A 5-digit code each company is assigned based on its main business activity. Some ESG requirements and climate risks depend on the NACE sector.
Association of Slovak banks that in 2024 adopted a standardised 57-question ESG questionnaire for clients applying for loans. The goal is a unified form instead of bank-specific versions.
A global initiative (CDP, UN Global Compact, WRI, WWF) that verifies whether corporate climate targets align with the Paris Agreement (1.5 °C warming limit). A company with SBTi-validated targets has a credible Net Zero plan.
Three GHG categories per the GHG Protocol. Scope 1 — direct emissions from owned sources (fuels, gas, company cars). Scope 2 — indirect from purchased energy (electricity, heat). Scope 3 — all other indirect emissions in the supply chain (purchases, transport, customer product use).
European regulation for financial institutions on disclosing ESG data about their products and portfolios. This is exactly why banks and funds need ESG data from their clients and invested companies.
A voluntary European standard by EFRAG for SMEs not directly obliged by CSRD but supplying larger companies that request ESG data from them. Has two modules: Basic (mandatory) and Comprehensive (extended). Finalised in late 2025.
A mechanism through which employees and partners can report unethical or illegal conduct in the company. In Slovakia regulated by Act 54/2019 — mandatory for companies with 50+ employees.
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