Workers’ rights

Rights to which people are entitled by virtue of being employees—regardless of origin, gender, or status. Relevant in the ESG context for fair working conditions along the supply chain.

Labor law

A branch of law that regulates relationships between employees and employers. This includes, among other things, working hours, protection against dismissal, and co-determination rights.

Impacts (ESG)

Effects that a company may have on the environment and people (including human rights) through its activities or business relationships—actual or potential, negative or positive.

Reporting obligation

A legally anchored requirement for sustainability reporting by companies, e.g., under CSRD and ESRS.

Biodiversity

The variety of life on Earth—from genes to species to ecosystems. Preserving biodiversity is central to a stable climate and functional cycles.

CSDDD

Abbreviation for Corporate Sustainability Due Diligence Directive—EU directive on due diligence in supply chains.

Corporate Sustainability Reporting Directive

EU directive for mandatory sustainability reporting by companies.

Circular Economy

English for Kreislaufwirtschaft: An economic system that keeps resources in use for as long as possible through reuse, repair, and recycling. Definition according to ESRS E5.

Code of Conduct

A code of ethics with binding rules and expectations regarding corporate behavior, including ESG topics such as human rights and social standards for employees and business partners.

Compliance Management

Systematic management, monitoring, and assurance of lawful corporate governance. The goal is to avoid legal violations and reputational risks, including in the ESG area.

Corporate Carbon Footprint (CCF)

A company’s GHG balance sheet—capturing all direct (Scope 1) and indirect emissions (Scope 2 and 3) across the value chain.

Corporate Due Diligence

Corporate due diligence to respect human rights and environmental standards throughout the supply chain in accordance with EU directives (e.g., CSDDD).

Corporate Governance

Structures and processes for directing and overseeing companies. The aim is responsible, transparent, and long-term oriented corporate management.

Corporate Sustainability Due Diligence

EU requirement for human rights and environmental due diligence along global supply chains. Based on CSDDD.

Design for Circularity

Product design aimed at durability, repairability, modularity, and recyclability—a central strategy for the circular economy.

Double materiality

An ESRS concept combining two perspectives: assessing a company’s material impacts on environment and society and the sustainability-related risks to the company.

EFRAG

European Financial Reporting Advisory Group—the advisory body to the EU Commission that developed ESRS standards for sustainability reporting.

ESG

Abbreviation for Environment, Social, Governance. Three key areas of sustainable corporate governance and the basis for many standards and directives.

ESG Compliance

Adherence to all legally and voluntarily relevant ESG standards within the company.

ESG Controlling

Monitoring and management of ESG goals and metrics within the company to effectively implement sustainability strategy.

ESRS

European Sustainability Reporting Standards. EU-wide mandatory sustainability reporting standards for companies.

EU Environmental Taxonomy

Part of the EU taxonomy: an assessment framework for the environmental sustainability of economic activities, e.g., in mobility, energy, and production.

EcoDesign

Design approach that considers environmental aspects across the entire product life cycle—with the goal of minimizing energy and material usage.

Empower Consumers Directive

EU directive to strengthen consumer rights in the context of sustainable consumption. Aim: more transparency in environmental claims.

Energy policy

A company’s policy on sustainable energy use—targeting energy efficiency, decarbonization, and use of renewable energy.

Governance

Principles and processes of responsible corporate governance, particularly regarding control, transparency, and responsible action in ESG.

Green Claims

Marketing claims about the environmental benefits of a product or company. From 2026 regulated more strictly by an EU directive to prevent greenwashing.

Greenwashing

Misleading portrayal of products or companies as environmentally friendly. Specifically addressed by the EU Green Claims directive.

ISO 14001

International standard for environmental management systems. Helps companies systematically improve their environmental performance.

Impact

The influence or effect a company has on the environment and society—can be positive or negative, direct or indirect.

Impact Management

Process for identifying, assessing, and managing a company’s effects on the environment, society, and economy.

Indicators / KPIs

Qualitative or quantitative metrics for measuring and evaluating the implementation of policies, actions, and target achievement in the ESG context. Can be voluntary or legally mandated.

Carbon footprint

Recording all relevant greenhouse gas emissions of a company or product over a defined period—foundational for climate protection strategies and CO₂ reduction targets.

Climate neutrality

A state in which a company avoids or offsets as many greenhouse gases as it emits. The term is legally regulated.

Climate policy

A company’s strategy to reduce greenhouse gas emissions, e.g., according to the Science-Based Targets Initiative (SBTi).

Climate protection

Actions to reduce global warming by cutting greenhouse gas emissions.

Circular economy policy

Part of environmental strategy—describes measures to promote resource conservation, reuse, and recycling in line with the circular economy.

Circular economy

An economic system that keeps resources in use for as long as possible through reuse, repair, and recycling. Definition according to ESRS E5.

Life cycle analysis

Systematic analysis of a product’s environmental impacts over its entire life—from raw material extraction to disposal.

Supply chain

The total set of processes and actors involved in a product’s creation—from raw materials to delivery.

Mobility transition

A comprehensive shift in the transport sector toward sustainable, environmentally friendly, and low-emission modes of travel.

Sustainability

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Encompasses environmental, social, and economic dimensions.

Net Zero

Climate target where all avoidable emissions are reduced and remaining ones are offset. Basis for many corporate strategies derived from SBTi.

Eco-design

A design approach that considers environmental aspects across the entire product life cycle—with the goal of minimizing energy and material usage.

Product Carbon Footprint (PCF)

Product Carbon Footprint: a product’s GHG balance over its entire life cycle—from manufacturing to disposal.

Planetary boundaries

A concept from environmental science that defines Earth’s ecological thresholds that should not be exceeded to ensure global stability.

Policies

A set or framework of general objectives and management principles that a company uses for decision‑making. A policy implements strategic decisions on a significant sustainability topic and is operationalized through actions and targets.

Recycling

A process for recovering materials from waste. The goal is material reuse to conserve resources and reduce environmental impact.

Refurbishment

Refurbishing a used product for further use. Defective or outdated parts are replaced and the product is restored to like‑new condition.

Remanufacturing

Industrial restoration of a product to like‑new condition. Used products are completely disassembled, inspected, repaired, and reassembled—including warranty.

Reporting Standards

Standards for structured and comparable sustainability reporting, e.g., GRI, DNK, ESRS.

Resource efficiency

The ratio of resources used to the output achieved. The aim is to achieve high quality with minimal material and energy use.

Risks (ESG)

Risks associated with environmental, social, or governance aspects that may have negative financial impacts on a company’s financial position, performance, or access to capital.

Science-Based Targets Initiative (SBTi)

An international initiative to develop science‑based climate targets compatible with the 1.5 °C goal of the Paris Agreement.

Scope 1, 2, 3

Categories of greenhouse gas emissions according to the GHG Protocol: Scope 1 (direct), Scope 2 (purchased energy), Scope 3 (upstream and downstream value chain).

Stakeholder

All groups affected by or able to influence a company’s activities—e.g., employees, customers, suppliers, or NGOs.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Encompasses environmental, social, and economic dimensions.

Sustainable Development Goals (SDGs)

The 17 global United Nations goals for sustainable development by 2030. Cover goals related to Planet (ecosystems), People, Prosperity, Peace, and Partnership.

Taxonomy (EU)

An EU classification system that assesses economic activities based on their environmental sustainability—basis for, e.g., financing and reporting.

Taxonomy alignment

The ability of economic activities to be classified as sustainable under the EU taxonomy. Based on EU Regulation 2020/852.

Greenhouse gas (GHG)

Gas that contributes to global warming by trapping heat in the atmosphere. Major GHGs include carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O). Emissions are expressed in CO₂ equivalents (CO₂e).

Corporate responsibility

A company’s commitment to assume social, environmental, and ethical responsibility beyond economic goals.

Upcycling

Upgrading waste or used materials into products of higher value. The first Supernova bike light was created by upcycling a tomato can.

Value chain

All steps in the creation of a product—from raw material extraction through production and distribution to use and disposal. A central level of analysis in the ESG context.

Materiality

A sustainability topic is considered material if it either has a significant impact on environment and society (impact materiality) or poses a material risk to the company (financial materiality)—or both.

Targets

Measurable, outcome‑oriented, time‑bound objectives linked to ESG metrics (KPIs). Can be voluntary or legally mandated.

Circularity

The degree to which products, materials, and resources are kept in circulation. The goal is to minimize waste and resource consumption.