Compliance Glossary
Plain-language definitions for EU sustainability compliance terminology.
Digital Product Passport (DPP)
A structured digital record containing verified sustainability data for a physical product, mandated under ESPR from 2026. Accessed via QR code or data carrier.
Life Cycle Assessment (LCA)
A methodology to quantify the environmental impacts of a product across its full lifecycle — from raw material extraction to end-of-life. Governed by ISO 14040/44.
Environmental Product Declaration (EPD)
A standardised, independently verified document disclosing the environmental performance of a product based on LCA results. Required for construction products and increasingly for others.
ESPR
Ecodesign for Sustainable Products Regulation (EU 2024/1781). Replaces the Ecodesign Directive and introduces DPP mandates for most product categories by 2029.
CBAM
Carbon Border Adjustment Mechanism. Requires EU importers of carbon-intensive goods (steel, cement, aluminium, fertilisers) to pay for embedded carbon from 2026.
EUDR
EU Deforestation Regulation. Bans EU market access for products linked to deforestation. Requires geolocation data and due diligence statements for covered commodities.
CSRD
Corporate Sustainability Reporting Directive. Requires large EU companies to publish ESRS-aligned sustainability reports, including Scope 3 emissions and supply chain disclosures.
BRSR
Business Responsibility and Sustainability Reporting. India's SEBI-mandated ESG disclosure framework for listed companies, covering 9 NVG principles.
Scope 3 Emissions
Indirect GHG emissions in a company's value chain — upstream (Category 1–8) and downstream (Category 9–15) — as defined by the GHG Protocol Corporate Standard.
Product Carbon Footprint (PCF)
The total greenhouse gas emissions attributable to a product across its lifecycle, expressed in CO2 equivalent. Governed by ISO 14067 and the GHG Protocol Product Standard.
Embedded Carbon
The CO2 equivalent emitted during the production of a good — the key metric for CBAM declarations. Includes both direct process emissions and indirect electricity emissions.
Due Diligence Statement (DDS)
A formal declaration submitted to the EU Information System under EUDR, confirming that covered products are deforestation-free and legally produced.
ESRS
European Sustainability Reporting Standards. The technical standards companies must follow when preparing CSRD disclosures, covering climate, pollution, water, biodiversity, workforce, governance, and supply chain.
Substance of Very High Concern (SVHC)
A chemical substance included on the REACH Candidate List due to its hazardous properties. Must be disclosed in DPPs when present above 0.1% by weight.