ESG & acronyms - from A to Z
Swiss
LCA - LIFE CYCLE ANALYSIS (English: Life Cycle Analysis LCA)
A little-known approach until the 1990s, life cycle analysis (LCA), called Life Cycle Analysis (LCA) in English, has established itself as the reference method for assessing the environmental impacts of a product. throughout its lifetime, which is why it is often referred to as a cradle-to-grave analysis
LCA is based on a multi-criteria functional approach to the product in 4 steps: Extraction of the raw materials needed to manufacture the product,
its manufacture, its distribution, its use, the end of life of the product (waste, recycling, etc.).
We can speak of a strategic decision-making tool because this type of analysis makes it possible to compare two types of solutions with each other, in order to choose the least expensive from an environmental point of view.
In terms of regulations:
- la definition of LCA objectives and scope,
- the inventory phase of the life cycle,
- the life cycle impact assessment phase,
- the interpretation phase of the life cycle,
- communication and critical review of LCA,
- the limitations of ACV,
- the relationship between the phases of the LCA and the conditions of use of the choices of values and optional elements.
Finally, the advantage of life cycle analysis is that it takes into consideration both “Inputs” aspects such as raw material consumption and “Outputs” such as gaseous effluents.
Basel III refers to the reform of the Basel I and Basel II agreements, initiated by the Basel Committee. This reform, formalized on December 16, 2010, notably proposes initiatives aimed at strengthening the international financial and banking system following the 2007 subprime crisis. Basel III recommends, among other things, measures aimed at consolidating the level and quality of banks as well as the management of bank liquidity risk and potential counterparty risk requirements.
Data Life Cycle (English: Data Life Cycle Management or Life Cycle Data Management) – DLM or LCDM
Data life cycle management (DLM) is a policy-based approach to managing the flow of data in an information system throughout its life cycle: from creation and initial storage until they become obsolete and are deleted. DLM products automate the relevant processes, typically organizing data into multiple tiers according to specific policies and automating the migration of data from one tier to another based on those criteria. Typically, newer data and data that needs to be accessed more frequently is stored on faster but more expensive storage media, while less critical data is stored on less expensive but slower media.
ESG(Environmental Social & Governance)
This international acronym is used by the financial community to designate the Environmental, Social and Governance (ESG) criteria which generally constitute the three pillars of extra-financial analysis. They are taken into account in socially responsible management. Thanks to ESG criteria, we can assess the exercise of corporate responsibility towards the environment and their stakeholders (employees, partners, subcontractors and customers).
The environmental criterion takes into account: waste management, reduction of greenhouse gas emissions and prevention of environmental risks.
The social criterion takes into account: accident prevention, staff training, respect for employee rights, the supply chain and social dialogue.
The governance criterion verifies: the independence of the board of directors, the management structure and the presence of an audit committee.
It is necessary in a strategy of sustainable development and responsible investment to link the financial performance of a company to its environmental and social impact.
KBOB
Founded in 1968 as a coordinating body for the Confederation's construction services, the KBOB initially dealt with questions relating to tenders, compensation for the increase in the cost of services and the fees of architects and engineers.
On January 1, 1999, the KBOB was reorganized and today defends the interests of its members - the building owners - and building owners vis-à-vis the construction industry. At the same time, it serves as a point of contact for the construction industry. Together with its members, the KBOB wants to ensure that the required means are used economically throughout the life of the buildings, while taking into account the cultural and ecological aspects of the construction.
L3PL
Entering into force on 1 January 2018, the Vaud law on the preservation and promotion of the rental stock (LPPPL or L3PL) was put in place to guarantee a rental stock sufficient to meet the needs of the population. Clearly, in the districts where there is a shortage of housing, that is to say, today, in almost all of the canton of Vaud, the municipalities have a right of pre-emption on real estate projects. With the constraint, if this right is used, to build a certain number of public utility dwellings.
P
The PAC (heat pump)
The PAC system-module (PACSM) is a Swiss standard for the planning and installation of heat pump systems. Installations using this type of module have a higher level of energy efficiency due to the increase in quality and at the same time reduce electricity consumption.
Around 3% of the country's buildings are heated by "district heating" (CAD) which distributes its energy using a "heat network". Such a network can be supplied by a household waste incineration plant, a large wood boiler, a central heating plant.heat-force coupling (CCF) powered by natural gas/biogas or wood, an industrial site which has heat discharges to be recovered.
Territorial energy planningrial
Territorial energy planning haswas introduced in the revision of the Vaud energy law (LVLEne) entered into force on July 1, 2014 and partially revised on September 1, 2021. It consists of translating the energy objectives that communities have set into land use plans.
Energy planning aims, at the scale of a district, toa municipality, an urban area or a region, to create conditions conducive to an efficient and rational use of energy as well as to promote the use and better integration of local renewable energies. Municipalities must carry out energy planning as part of the establishment:
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intercommunal master plans in compact urban areas (art. 16th LVLEne);
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allocation plans relating to a territory located, even partially, within a compact conurbation perimeter, a cantonal center or a regional center (art. 16f al. 1 LVLEne)
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allocation plans including a new gross floor area of more than 10,000 m2, outside the aforementioned perimeters (art. 16f al. 2 LVLEne).
CSR (Corporate Social Responsibility) CSR (Corporate Social Responsibility)
Corporate Social Responsibility, also called Corporate Social Responsibility, is defined by the European Commission such as: “the voluntary integration by companies of social and environmental concerns into their business activities and their relationships with stakeholders”.
CSR is in essence a voluntary approach. Nevertheless, it still consists of two dimensions: a mandatory dimension which forces companies to translate the standards imposed by law, such as the prohibition of child labor, and a proactive dimension which is a matter of the company's own will. , such as the establishment of a carbon footprint.
Stranded Asset
ResponsaThe Anglo-Saxon term "stranded asset", most often translated as "stranded asset" but also "unrecoverable asset" or "stranded asset", refers to investments and assets that lose value over time. evolution of the financial market. This devaluation of assets is mainly linked to major and sudden changes in legislation, environmental constraints or technological innovations that gradually make assets obsolete before they are fully written off. As opposed to future-proofed assets: Future-proofing (also futureproofing) is the process of anticipating the future and developing methods of minimizing the effects of shocks and stresses of future events.
Europe
Paris Agreements 2015
The indices are aligned with a 1.5°C temperature increase scenario and incorporate the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) as well as the minimum requirements for the benchmark aligned with the EU in Paris.Agreement ratified by Switzerland in October 2017.
Carbon Footprint and GHG Protocol(Green House Gas Protocol) To measure a company's greenhouse gas emissions, there are different methodologies (Bilan Carbone and GHG Protocol in particular), which have in common to categorize emissions into 3 perimeters, called "scopes". The famous scopes 1, 2 and 3 of a carbon footprint.
CDP(formerlyCarbon Disclosure Project) is an international non-profit organization, which operates as an online platform to make environmental data from companies and cities public.
L
ISR LABEL
Real estate funds are now eligible for the ISR label. Since October 23, 2020, real estate funds can claim ISR labeling, which should encourage professionals in the sector towards more virtuous practices, while allowing savers to invest in responsible funds.
Since almost two years, real estate funds can claim SRI labeling. Thus, real estate investment companies (SCPI), real estate collective investment organizations (OPCI) and real estate Alternative Investment Funds (FIA) are now eligible for the precious sesame.
The promise of the label is as follows: to allow “savers wishing to invest in vehicles that are virtuous on environmental, societal and governance issues to move towards funds corresponding to their values.” To achieve this, the label imposes on each fund, via its specifications, a grid of ESG criteria including eight mandatory impact indicators. Among the latter, four are imposed (energy performance, supply chain management, greenhouse gas emissions as well as mobility or health and comfort of occupants) and four others are optional (water management, contribution local development, resilience, biodiversity, etc.).
PRIThe PRI define responsible investment as a strategy and practice for considering environmental, social and governance (ESG) issues in investment decisions and engagement. official and are often used interchangeably.
SCOPE 1,2 and 3 a carbon footprint to measure a company's greenhouse gas emissions Carbon footprint and GHG Protocol
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Scope 1 = direct greenhouse gas emissions
These are greenhouse gas emissions that take place directly at the company level. Some examples:
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emissions related to gas heating in an office or factory
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emissions related to the combustion of fuel from service vehicles owned by the company
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refrigerant gas leaks from air conditioning, a fridge or a cold room
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Scope 2 = indirect emissions related to energy
These are mainly emissions related to electricity, which does not emit directly in the workplace but at the time of its production (the combustion of a gas plant for example).
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Scope 3 = other indirect emissions
It's all the other shows. Scope 3 is very broad by definition and generally represents the vast majority of emissions related to a company's activity. Not taking Scope 3 into account means having a very incomplete view of your company's carbon footprint.
Some examples of “scope 3” emissions:
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purchases of goods and raw materials
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purchases of services (administrative, digital, etc.)
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commuting
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the use of the products or services sold
European taxonomy
It provides a clear reference as to which activities should be considered green and under what conditions.
The proposal for a European taxonomy of sustainable activities is a device that aims to be central to the action plan for sustainable finance. Its primary objective is to create a community and then international language to categorize economic activities according to their environmental externalities. Published on June 18, 2019 and devoted to nearly 70 sectors of activity, its technical report, produced by a group of experts on sustainable finance, distinguishes three categories of sustainable activities:
· Low-carbon activities, which are part of the objective of carbon neutrality by 2050
· Potentially compatible activities but on condition of being less CO2 emitting
· Activities that contribute to achieving the other two categories of activities
The European taxonomy aims in particular to guard against activities that rely on greenwashing and the actors whose recognition of a “green” activity stems more from effective lobbying than from real preservation of the environment. As a result, the proposal has met with numerous opposition from industrial and financial groups who consider the system to be impossible to implement, or as too rigid and binary in its approach.
Indicateurs finance durable et RSE Europe
C
CSRD double matérialité : une conjonction de la matérialité financière et de la matérialité d’impact
La CSRD (Corporate Sustainability Reporting Directive), adoptée en novembre 2022 par l’Union européenne, va progressivement imposer à plus de 50 000 entreprises la publication d’un reporting de durabilité. Introduite dans l’acte délégué de la CSRD (adopté le 31 juillet 2023), l’analyse de double matérialité est au cœur de ce nouvel exercice de reporting ESG.
La double matérialité correspond à la conjonction entre deux types de matérialité :La matérialité financière (dite aussi matérialité simple) : qui correspond à l’impact de l’environnement économique, social et naturel sur les performances de l’entreprise. La matérialité d’impact : qui correspond à l’impact des activités de l’entreprise sur son environnement économique, social et naturel.
Un indicateur (ex : la pollution) est dit « matériel » lorsque les activités de l’entreprise l’impactent et/ou lorsque cet indicateur a un impact sur les performances de cette même entreprise.
E
EFRAG (European Financial Reporting Advisory Group)
Le Groupe consultatif européen sur l'information financière (European Financial Reporting Advisory Group ou « EFRAG ») est une association à but non lucratif. Créé en 2001 avec le soutien de la commission Européenne à laquelle il fournit des conseils techniques dans le domaine de la durabilité, l'EFRAG poursuit aujourd’hui deux missions principales :
Une mission financière consistant à influencer le développement des normes IFRS à l’échelle européenne, et évaluer leur efficacité dans le cadre du marché de capitaux Une mission de reporting en matière de développement durable
En effet depuis 2023, la commission européenne a confié à l'EFRAG le soin d'élaborer des normes d'information extra financière, les European Sustainability Reporting Standards (ESRS). Ces dernières pourraient s'appliquer en Europe à partir des exercices 2024 pour les grandes sociétés, et 2026 en ce qui concerne les PME
ESRS (European Sustainability Reporting Standards) de l’EFRAG commission européenne
De nouveaux critères de reporting européens élaborés par l’EFRAG
Pour compléter la nouvelle directive CSRD, l’EFRAG (l’European Financial Reporting Advisory Group) a été nommé conseiller technique auprès de la Commission européenne pour élaborer des normes précises de reporting : les ESRS (European Sustainability Reporting Standards). L'EFRAG travaille en étroite collaboration avec la Commission européenne pour développer des modèles de reporting ESG harmonisés à l’échelle de l’Union européenne.
Concrètement, les ESRS sont les normes européennes en matière de reporting, c'est-à-dire les critères environnementaux, sociaux et de gouvernance (ESG) de reporting européens. Cette série de nouvelles normes vise à améliorer le reporting de durabilité des entreprises à l’échelle européenne en favorisant une meilleure transparence, harmonisation et standardisation des déclarations non financières des entreprises. Cela permettra ainsi de pouvoir comparer plus facilement les rapports extra-financiers de diverses entreprises européennes.
Toutes les entreprises entrant dans le champ d’application de la CSRD doivent donc répondre aux normes européennes de reporting sur le développement durable en accord avec les ESRS adoptés par la Commission européenne en juillet 2023 et transposés en droit français par l'ordonnance publiée au Journal officiel le 7 décembre 2023.
Les ESRS sont basés sur les 3 piliers RSE : Environnemental, Social et de Gouvernance.
N
NFRD - (Non Financial Reporting Directive)
La NFRD, ou Non Financial Reporting Directive, est une directive européenne. Elle impose à plus de 11 000 entreprises de réaliser leur reporting extra-financier : suivre et publier leurs performances ESG (environnement, social, gouvernance).
La CSRD (Corporate Sustainability Reporting Directive), adoptée en novembre 2022 par l’Union européenne, va progressivement imposer à plus de 50 000 entreprises la publication d’un reporting de durabilité. Introduite dans l’acte délégué de la CSRD (adopté le 31 juillet 2023), l’analyse de double matérialité est au cœur de ce nouvel exercice de reporting ESG.
La double matérialité correspond à la conjonction entre deux types de matérialité :La matérialité financière (dite aussi matérialité simple) : qui correspond à l’impact de l’environnement économique, social et naturel sur les performances de l’entreprise. La matérialité d’impact : qui correspond à l’impact des activités de l’entreprise sur son environnement économique, social et naturel.
Un indicateur (ex : la pollution) est dit « matériel » lorsque les activités de l’entreprise l’impactent et/ou lorsque cet indicateur a un impact sur les performances de cette même entreprise.
