ESG Data Center Glossary

General ESG Terminology

• ESG (Environmental, Social, & Governance): A framework used to evaluate the sustainability and ethical impact of a company. It encompasses environmental practices, social responsibility, and governance practices.
• CSRD (Corporate Sustainability Reporting Directive): The European Union’s comprehensive ESG regulation requiring disclosures across all categories of ESG practices for over 50,000 companies.
• NFRD (Non-Financial Reporting Directive): The EU’s previous ESG disclosure program, to be replaced by CSRD in 2025.
• ESRS (European Sustainability Reporting Standards): Technical rules for disclosures under the CSRD, including general, environmental, social, and governance standards.
• ISSB (International Sustainability Standards Board): The body responsible for global ESG disclosure standards published in June 2023.
• IFRS (International Financial Reporting Standards): Nonprofit organization aiming to harmonize global disclosure rules, parent of ISSB.
• SASB (Sustainability Accounting Standards Board): Develops standards for financial-related sustainability disclosures.
• TCFD (Taskforce on Climate-related Financial Disclosures): A set of 11 questions serving as a global baseline for climate disclosures.
• SFDR (Sustainable Finance Disclosure Regulation): The EU’s program creating ESG “nutritional labels” for financial products.
• SECR (Streamlined Energy and Carbon Reporting): UK’s requirement for large companies to disclose electricity usage and carbon emissions annually.
• SEC (US Securities & Exchange Commission): US regulatory body for ESG disclosures by federal contractors, public companies, and ESG funds.
• FCA (Financial Conduct Authority): UK’s financial regulatory body requiring transparency on climate aspects of portfolios.
• GHG Protocol: Defines standards for emissions measurement used by many companies and governments.
• SBT (Science-Based Targets): Initiative setting the standard for emissions-reduction targets aligned with the Paris Agreement goals.

Environmental Metrics

• Owned Generation Capacity (MW): Maximum rated output of a generator under specific conditions.
• Net Generation (MWh): Gross generation minus the electrical energy consumed at the generating station.
• Purchase Power Agreement (PPA): Long-term contract between an electricity generator and a utility.
• Purchased Power from Unknown Generation Sources (MWh): Represents short-term energy purchases.
• Scope 1 Emissions: Direct emissions from sources owned or controlled by an entity.
• Scope 2 Emissions: Indirect emissions from purchased electricity or heat consumed by an entity.
• Scope 3 Emissions: All other indirect emissions attributable to an entity's activities, including purchased goods and services, fuel and energy-related emissions, waste, business travel, and employee commuting.
• CO2 Equivalents (CO2e): GHG emissions converted to CO2-equivalents based on global warming potentials.
• Scope 2 Location-Based CO2e Emissions: Use of regional emission rates for purchased electricity.
• Scope 2 Market-Based CO2e Emissions: Account for dedicated renewable purchases and specific PPAs.
• Water Consumption: Water not returned to the original source after withdrawal, including evaporation.
• Water Withdrawals: Rate of water withdrawn but not consumed for use in thermal generation.
• Required Mitigation Habitat Acres Supporting Biodiversity: Managed land to support biodiversity as required by permits or agreements.
• Voluntary Mitigation Habitat Acres Supporting Biodiversity: Managed land to support biodiversity voluntarily.
• Required Mitigation Habitat Acres Supporting Biodiversity and Pollinators: Managed land to support pollinators as required by permits or agreements.
• Voluntary Mitigation Habitat Acres Supporting Biodiversity and Pollinators: Managed land to support pollinators voluntarily.

Social Metrics

• System Average Interruption Duration Index (SAIDI) (Minutes): Average duration of system interruptions per customer per year.
• System Average Interruption Frequency Index (SAIFI): Average number of interruptions per customer per year.
• Customer Average Interruption Duration Index (CAIDI) (Minutes): Average duration of interruptions per customer per year.
• Customer Average Interruption Frequency Index (CAIFI) (Minutes): Average number of interruptions per interrupted customer per year.
• Average System Availability Index (ASAI): Ratio of total customer hours or minutes of service availability to total customer hours or minutes demanded.
• Incremental Annual Electricity Savings from Energy Efficiency Measures (MWh): Changes in energy use caused by new participants in demand-side management (DSM) programs.
• Incremental Annual Investment in Electric Energy Efficiency Programs (Nominal Dollars): Total annual investment in electric energy efficiency programs.
• Percent of Total Electric Customers with Smart Meters: Proportion of electric smart meters installed at end-use customer locations.
• Days Away, Restricted, and Transfer (DART) Rate: Total number of DART incidents per 200,000 employee labor hours worked.
• Recordable Incident Rate: Number of recordable injuries or illnesses per 200,000 employee labor hours worked.
• Lost-Time Incident Rate: Number of lost-time cases per 200,000 employee labor hours worked.
• Severity Rate: Average severity calculated as lost workdays plus restricted activity days per 200,000 hours worked.

Governance Metrics

• Total Number of Executive/Senior Level Officials: Individuals who plan, direct, and formulate policies at the highest levels of organizations.
• Total Annual Capital Expenditures: Use of funds or assumption of liability to obtain physical assets used for productive purposes for at least one year.
• Hiring Rate: Example: Female Hiring Rate = Female New Hires ÷ Total New Hires.
• Turnover Rate: Example: Female Turnover Rate = Total Female Turnover ÷ Total Turnover.
• Retention Rate: Example: Female Retention Rate = Number of retained female employees ÷ total active female employees.
• Opportunity/Promotion Rate: Example: Female Opportunity Rate = Female opportunities/promotions ÷ total new opportunities/promotions.

This glossary provides a comprehensive understanding of the key ESG metrics specific to data centers, helping stakeholders navigate the complex landscape of sustainability and responsible business practices.

‍