Arabic Sustainability Dictionary

Stranded assets

Assets that suffer unanticipated or premature write-downs or devaluation, for example fossil fuel reserves affected by climate policy or market shifts.

Substantial contribution

The EU Taxonomy condition that an activity significantly advances at least one environmental objective by meeting its technical screening criteria.

Suitable criteria

The benchmarks, such as GRI, ESRS or the GHG Protocol, against which subject matter information is measured or evaluated in an assurance engagement.

Sulphur oxides (SOx)

Gases, mainly sulphur dioxide, released by burning sulphur-containing fuels, which cause acid rain and respiratory harm.

Supplier code coverage

The share of active suppliers that have signed or committed to the company's supplier code of conduct.

Supplier-specific emission factor

An emission factor derived from data provided by a particular supplier for its product or service, which generally takes priority over generic or average factors.

Supply chain

The upstream part of the value chain: the network of suppliers that provide the goods and services a company uses.

Sustainability

Meeting present needs without compromising the ability of future generations to meet theirs, balancing environmental, social and economic considerations.

Sustainability bond

A bond whose proceeds finance a combination of green and social projects.

Sustainability committee

A committee of the board or management responsible for overseeing the company's sustainability strategy, risks and performance.

Sustainability governance

The structures, roles and processes through which a company's board and management oversee and are accountable for sustainability matters.

Sustainability index

A stock market index whose constituents are selected according to ESG criteria.

Sustainability performance target (SPT)

A measurable improvement in a key performance indicator, set within a given timeline, to which the terms of a sustainability-linked instrument are tied.

Sustainability policy

A formal statement of an organisation's commitments and principles on sustainability, approved by its leadership.

Sustainability report

A periodic report in which an organisation discloses its sustainability impacts, risks, opportunities, targets and performance.

Sustainability reporting

The practice of disclosing a company's sustainability impacts, risks, opportunities and performance to external stakeholders.

Sustainability strategy

An organisation's plan for managing its material sustainability impacts, risks and opportunities and integrating them into its business model.

Sustainability-linked bond (SLB)

A general-purpose bond whose financial or structural characteristics, such as the coupon, change depending on whether the issuer achieves predefined sustainability targets.

Sustainability-linked debt

Debt instruments whose financial terms, such as the coupon or margin, change depending on whether the issuer meets predefined sustainability performance targets.

Sustainability-linked loan (SLL)

A loan whose margin or other terms vary according to the borrower's performance against predetermined sustainability performance targets.

Sustainability-related financial information

Information about sustainability-related risks and opportunities that could reasonably be expected to affect an entity's cash flows, access to finance or cost of capital.

Sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland Report, 1987).

Sustainable Development Goals (SDGs)

The 17 goals adopted by UN member states in 2015 as part of the 2030 Agenda, covering poverty, health, education, climate, equality and other areas.

Sustainable finance

Financial services and products that take environmental, social and governance considerations into account in lending and investment decisions.

Sustainable Finance Disclosure Regulation (SFDR)

EU Regulation 2019/2088, which requires financial market participants to disclose how they integrate sustainability risks and adverse impacts and to classify relevant products.

Sustainable procurement

Purchasing goods and services in a way that takes into account environmental, social and economic impacts across their life cycle.