Arabic Sustainability Dictionary

Employee turnover rate

The number of employees who leave an organisation during a period divided by the average or period-end number of employees.

Energy audit

A systematic inspection and analysis of energy use in a building or process to identify opportunities to save energy.

Energy efficiency

Using less energy to deliver the same output or service.

Energy intensity

Energy consumed per unit of output or economic activity, such as gigajoules per tonne of product or per million of revenue.

Energy management system (EnMS)

A structured framework of policies, processes and targets for continually improving energy performance, commonly certified to ISO 50001.

Energy service company (ESCO)

A company that designs and implements energy-saving projects, often financed and repaid from the resulting energy savings.

Energy storage

Systems, such as batteries or pumped hydro, that store energy for later use and help balance variable renewable generation.

Energy transition

The structural shift of energy systems from fossil fuels towards low-carbon and renewable sources.

Enterprise risk management (ERM)

An integrated, organisation-wide approach to identifying, assessing, managing and monitoring risks, including ESG risks.

Enterprise value including cash (EVIC)

The sum of a listed company's market capitalisation of ordinary and preferred shares and the book value of its total debt and minority interests, without deducting cash; PCAF uses it as the denominator of the attribution factor for listed companies.

Environmental and social risk management (ESRM)

A bank's framework for identifying, assessing, categorising and monitoring the environmental and social risks of its clients and transactions.

Environmental impact assessment (EIA)

A formal process for identifying, predicting and evaluating the environmental effects of a proposed project before a decision is made.

Environmental management system (EMS)

A set of policies, processes and practices that enables an organisation to manage its environmental impacts and improve performance.

Environmental objectives

The six objectives of the EU Taxonomy: climate change mitigation, climate change adaptation, water and marine resources, circular economy, pollution prevention and biodiversity and ecosystems.

Environmental pillar

The part of ESG that covers a company's interaction with the natural environment, including emissions, energy, water, waste, pollution and biodiversity.

Environmental product declaration (EPD)

A verified document, based on a life cycle assessment, that reports the environmental impacts of a product in a standardised way.

Equator Principles (EP)

A risk management framework adopted by financial institutions for determining, assessing and managing environmental and social risk in project finance.

Equity share

A consolidation approach under which a company reports emissions from each operation in proportion to its ownership share in it.

Equity story

The concise narrative a company presents to investors explaining why it is an attractive investment, increasingly including its sustainability strategy.

ESG (ESG)

Shorthand for the environmental, social and governance factors used to assess a company's sustainability performance and related risks and opportunities.

ESG data provider

A company that collects, analyses and sells ESG data, scores and research to investors.

ESG integration

The explicit and systematic inclusion of ESG factors in investment analysis and decisions.

ESG maturity

The degree to which an organisation has developed its sustainability governance, data, processes and performance, from initial to advanced.

ESG rating

An assessment by a third-party provider of a company's exposure to and management of ESG risks or its sustainability performance.

ESG-linked remuneration

Executive incentive schemes in which part of the variable pay depends on achieving sustainability targets.

EU Taxonomy

An EU classification system (Regulation (EU) 2020/852) that defines which economic activities count as environmentally sustainable.

European Sustainability Reporting Standards (ESRS)

The reporting standards adopted under the CSRD, comprising cross-cutting standards and topical standards on environmental (E1–E5), social (S1–S4) and governance (G1) matters.

Evidence

Documents or records, such as bills, meter readings and certificates, that support a reported figure.

Executive remuneration

The total pay and benefits awarded to senior executives, including salary, bonuses and long-term incentives.

Extended producer responsibility (EPR)

A policy approach that makes producers responsible, financially or physically, for the treatment or disposal of their products after use.