Arabic Sustainability Dictionary

Marine resources

Living and non-living resources of seas and oceans, such as fish stocks, seabed minerals and marine ecosystems.

Market capitalisation

The total market value of a company's outstanding shares: the share price multiplied by the number of shares.

Market-based method

A Scope 2 accounting method that reflects emissions from the electricity a company has purchased through contractual instruments such as energy attribute certificates and power purchase agreements.

Material misstatement

An error or omission, individually or in aggregate, that could reasonably be expected to influence the decisions of intended users.

Material topic

A sustainability topic that a materiality assessment has found significant enough to be reported on.

Materiality

The principle used to decide which topics or information are significant enough to be reported because they matter to users' decisions or reflect significant impacts.

Materiality assessment

The process of identifying and prioritising the sustainability topics that are material for a company's reporting and strategy.

Materiality threshold

The quantitative level, such as 5% of total emissions, above which a misstatement is considered material in an assurance engagement.

Measurement, reporting and verification (MRV)

The process of quantifying emissions or reductions, reporting them and having them independently verified, as used in carbon markets and climate agreements.

Metric requirement

A disclosure requirement answered with a quantitative figure, such as total Scope 1 emissions or energy consumption.

Microplastics

Plastic particles smaller than 5 millimetres that persist in water, soil and organisms.

Middle East Green Initiative (MGI)

A regional initiative launched by Saudi Arabia in 2021 to reduce emissions and expand tree planting across the Middle East.

Minimum safeguards

The EU Taxonomy requirement that a company follows procedures aligned with the OECD Guidelines and the UN Guiding Principles on Business and Human Rights.

Mitigation hierarchy

A sequence of steps for managing impacts on biodiversity: avoid, minimise, restore and, as a last resort, offset.

Modern slavery

An umbrella term for situations of exploitation, including forced labour, debt bondage and human trafficking, that a person cannot refuse or leave because of threats, violence or coercion.

Modified conclusion

An assurance conclusion that is qualified, adverse or disclaimed because of a material misstatement or an inability to obtain sufficient evidence.

Montreal Protocol

The 1987 international treaty that phases out the production and consumption of ozone-depleting substances.

Municipal solid waste (MSW)

Everyday waste collected from households and similar commercial sources by or for municipalities.

Narrative requirement

A disclosure requirement answered in words rather than numbers, such as a description of governance structure, policy commitments or climate risks.

Nationally determined contribution (NDC)

A climate action plan that each party to the Paris Agreement submits and updates every five years, setting out its emission targets and adaptation measures.

Natural capital

The stock of renewable and non-renewable natural resources, such as plants, animals, air, water and soils, that yield benefits to people.

Nature positive

A global goal to halt and reverse nature loss by 2030 from a 2020 baseline, so that nature is measurably recovering by 2050.

Nature-based solutions (NbS)

Actions to protect, sustainably manage or restore ecosystems that address societal challenges, such as climate change, while benefiting biodiversity and people.

Nature-related risks

Risks to an organisation arising from its dependencies and impacts on nature, including physical, transition and systemic risks.

Negative screening

Excluding companies, sectors or countries from a portfolio based on ESG criteria, such as involvement in controversial weapons or thermal coal.

Net zero

A state in which an organisation's or country's residual greenhouse gas emissions are balanced by an equivalent amount of permanent removals, after deep emission cuts.

Network for Greening the Financial System (NGFS)

A network of central banks and supervisors that develops climate risk management practices and climate scenarios for the financial sector.

Nitrogen oxides (NOx)

Gases, mainly nitric oxide and nitrogen dioxide, formed during high-temperature combustion, which contribute to smog and acid rain.

Nomination and remuneration committee

A board committee that oversees board and executive appointments and remuneration policy.

Non-bank financial company

A financial institution that offers services such as leasing, insurance, microfinance or brokerage without holding a banking licence.