Hypothetical beverage company called "FreshDrink Co." Financial materiality (impact on the company): Climate change is causing water scarcity in regions where FreshDrink Co. sources its water. This scarcity could lead to increased water costs and potential supply disruptions, directly affecting the company's financial performance and long-term viability. Environmental and social materiality (impact of the company): FreshDrink Co.'s water usage in water-stressed areas may deplete local water resources, affecting the surrounding ecosystems and communities' access to clean water.

Greenwashing is the practice of making false or misleading claims about the environmental benefits or sustainability of a product, service, or company. This can include exaggerating or fabricating a product's eco-friendliness, hiding its negative environmental impacts, or making unsubstantiated claims about its sustainability.

The S&P Global CSA Score is the S&P Global ESG Score without the inclusion of any modeling approaches. The graphic below visualizes the CSA. The size of the segments reflects the financial materiality assigned at each level as well as the weight applied in the score aggregation process.

The Global Industry Classification Standard (GICS®) was developed in 1999 by S&P Dow Jones Indices and MSCI. The GICS methodology aims to enhance the investment research and asset management process for financial professionals worldwide. It is the result of numerous discussions with asset owners, portfolio managers, and investment analysts around the world. It was designed in response to the global financial community’s need for accurate, complete, and standard industry definitions.

ISO 37000:2021 Governance of organizations — Guidance provides organizations and their governing bodies the tools they need to govern well, enabling them to perform effectively while behaving ethically and responsibly.

Carbon Markets: The compliance carbon market is regulated by laws that enforce emissions reductions, such as the EU ETS and California’s cap-and-trade program. Companies buy or sell carbon credits based on their emissions. The voluntary carbon market, driven by corporate net-zero goals, operates independently but is rapidly expanding. Transactions are increasingly conducted on digital exchanges, with blockchain technology playing a growing role in trading carbon credits.

Measures for carbon intensity can vary based on the industry and the specific focus of the measurement. Here are some of the most common measures for carbon intensity.

EFRAG (European Financial Reporting Advisory Group) is an independent, non-profit organization that provides advice and support to the European Union (EU) on financial reporting and accounting matters.