Arabic Sustainability Dictionary

Climate target

A commitment to reduce emissions by a set amount by a target year, measured against a base year.

Climate transition plan

An aspect of a company's overall strategy that sets out its targets, actions and resources for the transition to a low-carbon economy, including how it will reduce emissions.

CN code (CN)

A code of the EU Combined Nomenclature used to classify traded goods; under CBAM it determines whether an imported good is covered.

Code of conduct

A document setting out the ethical standards and behaviour expected of employees or suppliers.

Collective bargaining coverage

The percentage of employees whose working conditions or terms of employment are set by collective bargaining agreements.

Combined heat and power (CHP)

The simultaneous generation of electricity and useful heat from a single fuel source, which raises overall efficiency.

Community investment

Voluntary contributions of money, time or in-kind support by a company to benefit the communities where it operates.

Comparability

The quality of information that enables users to identify similarities and differences between periods and between entities.

Compliance

The function and processes that ensure an organisation follows applicable laws, regulations and internal policies.

Comply or explain

A regulatory approach under which companies either follow a code or guideline or publicly explain why they do not.

Composting

The controlled aerobic decomposition of organic waste into a soil conditioner.

Conference of the Parties (COP)

The supreme decision-making body of the UNFCCC, which meets annually to review implementation of the Convention and the Paris Agreement.

Conflict of interest

A situation in which a person's private interests could improperly influence the performance of their duties to the organisation.

Consolidation approach

The method a company uses to set its organisational boundary for emissions reporting: operational control, financial control or equity share.

Construction and demolition waste (C&D waste)

Waste generated by building, renovation and demolition activities, such as concrete, bricks, metals and wood.

Consumers and end-users

Individuals who acquire or use a company's goods and services for personal use; covered by ESRS S4.

Continuous disclosure

The obligation of a listed company to disclose promptly any material information that could affect its share price.

Convention on Biological Diversity (CBD)

The 1992 international treaty for the conservation of biodiversity, the sustainable use of its components and the fair sharing of benefits from genetic resources.

Corporate governance

The system of rules, practices and processes by which a company is directed and controlled, balancing the interests of shareholders and other stakeholders.

Corporate social responsibility (CSR)

A company's voluntary commitment to operate in an economically, socially and environmentally responsible way beyond legal requirements.

Corporate Sustainability Reporting Directive (CSRD)

The EU directive (Directive (EU) 2022/2464) that requires in-scope companies to report sustainability information in line with ESRS and to obtain assurance on it.

Corrective action

An action taken to eliminate the cause of a gap, nonconformity or off-track performance and prevent it from recurring.

Covenant

A condition in a loan agreement that the borrower must meet, such as maintaining a financial ratio or an environmental standard, tested at set intervals.

Cradle to cradle (C2C)

A design approach in which materials are kept in continuous biological or technical cycles so that a product at end of life becomes input for new products.

Credit portfolio

The total set of loans and credit facilities held by a bank.

Cross-industry metrics

Disclosure metrics that apply to all entities regardless of industry, such as greenhouse gas emissions under IFRS S2.

Cross-sectoral correction factor

A uniform reduction applied to free allocation under the EU ETS when total requested free allowances exceed the available cap.

Cybersecurity

The protection of networks, systems and data from digital attacks, unauthorised access and damage.