The equation δg = δh - tδs represents the Gibbs free energy change of a system, where δg is the change in free energy, δh is the change in enthalpy, t is the temperature in Kelvin, and δs is the change in entropy. This equation is crucial for understanding how spontaneous processes occur, as it relates thermodynamic properties to determine whether a reaction can proceed without external energy input. It highlights the balance between energy and disorder, showing that a decrease in free energy indicates a favorable reaction.