Environmental Social Governance
ESG
A framework evaluating a company's performance on environmental, social, and governance criteria.
EU buyers increasingly require Indian exporters to demonstrate ESG performance. CSRD will formalise this.
Scope 1 Emissions
Direct greenhouse gas emissions from sources owned or controlled by an organisation.
Indian manufacturers must measure Scope 1 emissions for EU buyer sustainability questionnaires.
Scope 2 Emissions
Indirect emissions from the generation of purchased electricity, heat, or steam.
Scope 2 emissions depend on India's electricity grid mix — a challenge given India's coal-heavy power sector.
Scope 3 Emissions
All indirect emissions in a company's value chain — both upstream and downstream.
CSRD requires EU companies to report Scope 3 including from Indian suppliers. Key pressure point for Indian exporters.
SBTi
SBTi
Science Based Targets initiative — enables businesses to set emission reduction targets aligned with climate science.
EU buyer sustainability requirements increasingly reference SBTi alignment. Indian exporters should consider SBTi targets.
GOTS Certification
GOTS
Global Organic Textile Standard — leading processing standard for organic fibres including ecological and social criteria.
EU textile buyers require GOTS for organic cotton textiles. Indian textile mills must obtain GOTS for EU organic market.
OEKO-TEX Standard 100
OEKO-TEX
Testing and certification system for textile raw materials and end products for harmful substances.
EU textile buyers require OEKO-TEX 100 certification. Indian textile manufacturers must test to OEKO-TEX limits.
Fair Trade Certification
Certification ensuring products were made under fair conditions including minimum prices and safe working conditions.
EU consumers prefer Fair Trade-certified goods. Indian agro-food and handicraft exporters benefit from Fairtrade mark.
Circular Economy
An economic model eliminating waste by keeping materials in use through reuse, repair, and recycling.
EU Circular Economy Action Plan drives ESPR, packaging regulation, and product design rules affecting Indian exporters.
Net Zero
A state in which greenhouse gas emissions are balanced by removals — achieving carbon neutrality.
EU aims for Net Zero by 2050. India aims for Net Zero by 2070. India clean energy exports are key corridor.
Paris Agreement
International treaty committing countries to limit global warming to well below 2°C above pre-industrial levels.
EU's Paris Agreement commitments drive CBAM, EU Taxonomy, and green finance flows relevant to India clean energy.
CSDDD
CSDDD
Corporate Sustainability Due Diligence Directive — EU law requiring large companies to conduct human rights and environmental due diligence throughout their value chains.
CSDDD will require EU companies to audit Indian suppliers. Indian exporters must prepare supply chain due diligence documentation.
Life Cycle Assessment
LCA
A technique to assess environmental impacts of a product from raw material extraction through production, use, and disposal.
EU ESPR and Digital Product Passport will mandate LCA data for many product categories exported from India to EU.