The glossary for all organisations

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.