The glossary for all organisations

A science-based target to limit global temperature rise to 1.5°C above pre-industrial levels, based on climate science recommendations.

Quantitative measures of an activity such as electricity used or distance travelled, used to calculate greenhouse gas emissions.

Adjustments made to social, economic, or ecological systems to cope with climate change effects, such as rising sea levels and extreme weather.

The process of assigning responsibility for GHG emissions from a specific source, such as a business unit, based on its contributions.

A level of confidence that a greenhouse gas inventory is accurate, transparent, consistent, relevant, complete and free from material misstatements.

Transparent, well-documented historical records that explain how a greenhouse gas inventory was compiled, ensuring credibility and traceability for audits.

Emissions that were reduced due to a specific action, such as using renewable energy instead of fossil fuels.

B Corp Certification indicates a company meets high standards of social and environmental performance, accountability, and transparency.

The greenhouse gas emissions of an organisation or entity in a specified base year, used as a reference point for future emissions reduction efforts.

The process of updating base year emissions to account for structural changes, such as mergers or changes in accounting methods, to maintain data consistency over time.

A global non-profit organisation that helps companies and cities measure, manage, and disclose their environmental impacts, particularly focusing on greenhouse gas emissions, climate change, natural resources, water and forests.

A market-based system where companies can trade emission allowances under a set emissions cap to control pollution levels.

Guidelines for measuring and reporting greenhouse gas emissions, such as the GHG Protocol and ISO 14064, to ensure consistency and transparency.

The EU’s tool for putting a fair price on the carbon emitted during the production of carbon-intensive goods entering the EU, encouraging cleaner industrial production globally.

A technology used to capture carbon dioxide emissions from fossil fuel burning during electricity generation or industrial processes, preventing it from entering the atmosphere.

Tradable certificates or permits that represent the right to emit one tonne of CO2 or the equivalent amount of another greenhouse gas.

A standard unit used to measure carbon footprints, representing the impact of the 7 greenhouse gases in terms of the equivalent amount of CO2.

The total amount of greenhouse gases emitted directly or indirectly by an individual, organisation, event, or product, typically measured in CO2e.

The total greenhouse gas emissions generated during a product’s lifecycle, from raw material extraction to disposal, giving insights into its environmental impact.

The amount of greenhouse gas emissions produced per unit of output, often expressed as CO2e per unit of GDP, energy, or product.

The situation where businesses transfer production to countries with looser emission constraints, leading to an overall increase in global emissions.

Achieving a balance between emitting carbon and removing it from the atmosphere, often through emissions reductions, removals and carbon offsetting.

The state of having a net-zero carbon footprint by balancing emitted carbon with an equivalent amount removed through reducing emissions, carbon offsetting or similar measures.

A method of compensating for your carbon emissions by investing in projects that reduce, avoid or remove an equivalent amount of carbon dioxide elsewhere, such as renewable energy or reforestation.

A mechanism that captures the external costs of greenhouse gas emissions to encourage polluters to reduce the amount of greenhouse gases they emit. It can be implemented through carbon taxes or cap-and-trade systems.

A model of production and consumption that focuses on reusing, recycling, and regenerating resources to minimise waste and reduce environmental impact.

A long-term change in global or regional climate patterns, largely caused by the increase in greenhouse gas emissions from human activities like burning fossil fuels, leading to rising temperatures and environmental shifts.

Actions and policies aimed at reducing greenhouse gas emissions to limit the global temperature rise and mitigate the impact of climate change.

The process of identifying and evaluating potential risks posed by climate change to an organisation's operations, assets, or business strategy.

Positive effects that arise from addressing climate change, such as adopting renewable energy, improving energy efficiency, or investing in green technologies.

Risks that arise due to the physical impacts of climate change, such as extreme weather events or long-term changes in temperature and precipitation patterns.

The potential negative impacts that climate change can have on a business, including physical risks and transition risks related to moving to a low-carbon economy.

Risks that arise as businesses transition to a lower-carbon economy, such as regulatory changes, market shifts, reputational risks and changing consumer preferences.

A business model that ensures companies act responsibly toward society and the environment by considering their social, environmental, and economic impacts.

An EU directive that mandates companies to identify and address human rights and environmental impacts in their operations and supply chains.

An EU regulation requiring companies to disclose sustainability-related information, including environmental, social, and governance (ESG) metrics.

A partial life cycle assessment that covers the emissions and environmental impacts from the extraction of raw materials to when the product leaves the manufacturing facility.

A life cycle assessment that tracks the environmental impacts of a product from raw material extraction to its disposal or recycling at the end of its life.

The process of reducing carbon emissions, usually through transitioning to renewable energy sources and increasing energy efficiency in industries and sectors that rely on fossil fuels.

Greenhouse gas emissions that come from sources directly owned or controlled by a company, such as emissions from fuel combustion or company-owned vehicles.

Greenhouse gas emissions generated after a product leaves a company’s control, including emissions from transportation, distribution, and end-use by consumers.

The process of assigning emissions based on the market value of a product or service, which is often used in life cycle assessments to divide emissions between different products or services.

A coefficient that estimates the greenhouse gas emissions associated with an activity, such as energy consumption or industrial production, per unit of activity.

A legally binding agreement or target set by governments or organisations to reduce greenhouse gas emissions by a specified amount over a set period of time.

A software platform or tool that automates the calculation, reporting, and tracking of greenhouse gas emissions across various scopes and sectors.

The amount of greenhouse gas emissions per unit of output, such as emissions per tonne of product, per megawatt-hour of electricity, or per million dollars of revenue.

The final phase of a product’s life cycle, when it is discarded, recycled, or otherwise disposed of, which can have significant environmental impacts.

The practice of using less energy to achieve the same output or service, often achieved through technology improvements or operational changes.

A consolidation approach is where a company’s greenhouse gas emissions are proportionally attributed based on its share of ownership or equity in an operation.

A consolidation approach where a company reports 100% of the greenhouse gas emissions from operations under its financial control, regardless of ownership share.

A measure of the function of a product or service, used as a reference unit in life cycle assessments to standardise the environmental impacts across products.

Any process, activity, or system that removes and stores more greenhouse gases from the atmosphere than it emits, such as forests or oceans.

The GRI provides a set of standards for sustainability reporting, helping organisations communicate their environmental, social, and governance performance.

A UK regulation that ensures companies make accurate and substantiated environmental claims in their marketing, preventing greenwashing and misleading claims.

Gases such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3) that contribute to global warming by trapping heat in the Earth’s atmosphere.

A comprehensive international standard that provides guidelines for companies and organisations to measure, manage, and report their greenhouse gas emissions.

Gases like carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3) that trap heat in the atmosphere, causing global warming and climate change.

The act of making false or misleading environmental claims about a product or service to appear more eco-friendly than it is.

The International Financial Reporting Standard (IFRS) S1 sets out how companies should report sustainability-related financial information, focusing on transparency and accountability.

The IFRS S2 standard provides guidelines for companies to disclose information on climate-related risks and opportunities, helping stakeholders understand the impact of climate change on businesses.

ISO 14064 is an international standard for quantifying, reporting, and verifying greenhouse gas (GHG) emissions at the organisational level, helping businesses improve their GHG management.

The International Sustainability Standards Board (ISSB) is an independent standard-setting body, which develops global standards for sustainability reporting, ensuring businesses disclose their environmental and social impacts effectively.

Emissions that are a consequence of a company’s operations but occur from sources owned or controlled by another company, such as electricity purchased from a utility provider.

The IPCC is the leading international body for assessing climate change science, providing policymakers with scientific assessments on climate risks and strategies for adaptation and mitigation.

A tool that companies use to assign a monetary value to their greenhouse has emissions, often expressed as a price per metric ton of carbon dioxide equivalent (CO2e), which companies can utilise to inform investment and operational decisions.

The entire process of a product’s life, from raw material extraction, production, and use to its eventual disposal or recycling.

A method used to assess the environmental impacts associated with all stages of a product’s life cycle, from raw material extraction to disposal.

Each phase of a product’s life, including material acquisition, production, distribution, use, and end-of-life, which contributes to its overall environmental impact.

A method to calculate Scope 2 GHG emissions based on the average emissions factors of the energy grid in a specific geographic location.

A method to calculate Scope 2 GHG emissions based on emissions from the electricity your company has contractually purchased, including renewable energy certificates.

The stage in a product’s life cycle that covers the extraction and processing of raw materials, which contributes to the product’s overall environmental impact.

Actions and strategies aimed at reducing or preventing the emission of greenhouse gases to limit the effects of climate change.

Science-based greenhouse gas reduction targets that align with limiting global warming to 1.5°C and are expected to be achieved within 5 to 10 years.

A state where the amount of greenhouse gases emitted into the atmosphere is fully balanced by the amount removed, resulting in no net increase in atmospheric carbon levels.

Achieving a balance between the greenhouse gases emitted and those removed from the atmosphere, resulting in no net climate impact.

The boundaries set by a company to determine which of its operations' emissions are included in its carbon reporting, including direct and indirect emissions.

A consolidation approach for greenhouse gas emissions where a company includes all emissions from operations it has operational control over, regardless of ownership.

The boundaries a company sets to define which parts of its operations are included in its carbon emissions reporting, based on the consolidation approach taken - operational control, financial control or equity share.

A legally binding international treaty adopted in 2015, with the goal of limiting global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels.

The process of assigning emissions based on the physical relationships between inputs and outputs, and the quantity of emissions.

Quantified data collected directly from specific processes or activities within a company’s value chain, used to assess greenhouse gas emissions more accurately.

The total greenhouse gas emissions generated throughout a product’s lifecycle, from raw material extraction to disposal, measured in carbon dioxide equivalents (CO2e).

The life cycle stage in a product’s life cycle where it is distributed and stored before reaching the end consumer, which contributes to its overall carbon footprint.

The life cycle stage in a product's lifecycle that starts when production begins and ends when the final product is completed and ready to be distributed.

Energy sourced from natural resources that are replenished constantly, like sunlight, wind, water, geothermal heat, and biofuels, contributing to a reduction in greenhouse gas emissions.

Certificates that verify that one megawatt-hour (MWh) of electricity has been generated from renewable sources. RECs allow companies to claim the use of green energy, even if the actual electricity consumed isn’t renewable.

A global collaboration between CDP, United Nations Global Compact, World Resource Institute and World Wide Fund for Nature, helping companies set emission reduction targets aligned with limiting global warming to well below 2°C as outlined in the Paris Agreement.

Corporate targets to reduce greenhouse gas emissions in line with climate science, helping limit global temperature rise to 1.5°C as set by the Paris Agreement.

Direct greenhouse gas emissions from sources owned or controlled by the company, such as company vehicles or on-site fuel combustion.

Indirect greenhouse gas emissions from the consumption of purchased electricity, steam, heat, or cooling. These emissions occur outside the company’s direct operations but are a result of its energy use.

All other indirect greenhouse gas emissions that occur in a company’s value chain, including both upstream and downstream activities, such as transportation and the use of sold products.

Data collected from external sources or third-party databases that are used to estimate emissions when primary data from a company’s direct activities is unavailable.

The process of disclosing a company’s environmental, social, and governance (ESG) performance to stakeholders, demonstrating its sustainability efforts and impact.

Financial reports that provide information on the sustainability-related risks and opportunities that may affect a company’s performance, including governance, strategy, and risk management.

The SDGs, established by the United Nations in 2015, are a set of 17 global goals aimed at ending poverty, protecting the planet, and ensuring peace and prosperity for all by 2030.

Indirect greenhouse gas emissions from the production and transportation of goods and services that a company purchases, occurring before they reach the company’s operations.

The life cycle stage in a product’s lifecycle when the end consumer uses it, contributing to its overall environmental impact until it is discarded or enters a waste management process.

The process of evaluating whether the methods and assumptions used in an emissions statement are reasonable and scientifically sound to ensure credible results.

The full range of upstream and downstream activities required to bring a product or service from conception through to delivery, including raw material extraction, production, distribution, and final sale.

Greenhouse gas emissions produced throughout a company’s entire value chain, including both upstream emissions from suppliers and downstream emissions from product use and disposal.