Glossary of Terms for Sustainability and Net Carbon Zero

1.5 degrees C

The global climate target to limit the increase in global temperatures to no more than 1.5°C above pre-industrial levels, as outlined in the Paris Agreement.

2 degrees C

The climate target aiming to limit the increase in global temperatures to no more than 2°C above pre-industrial levels, as set in the Paris Agreement.

Additionality

A measure of whether an environmental benefit, such as emissions reduction or resource efficiency, would not have happened without a specific action, project, or policy.

Carbon Accounting

The measurement and tracking of greenhouse gas (GHG) emissions from an organisation, product, or service, used to monitor environmental impact and drive reductions.

Carbon Border Adjustment Mechanism (CBAM)

An EU policy that places a carbon price on imported goods to prevent carbon leakage and encourage cleaner production worldwide.

Carbon Intensity

The amount of greenhouse gases (GHGs) emitted per unit of energy or output, typically measured in CO₂ per kilowatt-hour, kilogram of product, number of units, or yearly turnover.

Carbon Neutral

A balance between the CO₂ emitted and removed from the atmosphere, achieved through direct reductions and offsetting strategies.

Carbon Offset

A verified reduction in GHG emissions, such as reforestation or renewable energy projects, used to compensate for emissions elsewhere.

Carbon Credits

Tradable certificates representing the reduction or removal of one tonne of CO₂ or its equivalent, often used to offset emissions.

Circular Economy

A sustainable model that minimises waste by keeping resources in use through reuse, recycling, and responsible product design.

CDP Reporting (formerly Carbon Disclosure Project)

A global environmental disclosure system where companies and cities report on climate risks, emissions, and sustainability efforts covering areas like deforestation, water use, plastic waste, and biodiversity impacts

Corporate Sustainability Reporting Directive (CSRD)

An EU regulation that strengthens corporate sustainability reporting requirements, increasing transparency on environmental and social impact.

CSR (Corporate Social Responsibility)

A business approach that integrates social, environmental, and ethical considerations into operations and decision-making.

Decarbonisation

The process of reducing or eliminating carbon and other greenhouse gas emissions from industrial activities, typically by transitioning to cleaner technologies, renewable energy, and more sustainable practices.

Direct Emissions

Greenhouse gas emissions that come directly from owned or controlled sources, such as company vehicles or manufacturing processes.

Double Counting

When the same emissions reduction or offset is counted more than once, leading to inflated environmental claims.

Downstream Emissions

Scope 3 emissions that occur after a product leaves a company’s control, including emissions from use and disposal.

Emission Factor

A value used to estimate GHG emissions based on specific activities, such as fuel consumption or electricity use.

Environmental Impact

The effects a company’s operations, products, or services have on the environment, from energy use to resource consumption and emissions.

Environmental, Social, and Governance (ESG)

A framework used to assess a company’s sustainability, ethical impact, and governance practices.

Energy Efficiency

Using less energy to perform the same function, reducing both costs and emissions.

GHG Protocol

The Greenhouse Gas Protocol is a widely used standard for measuring and reporting greenhouse gas emissions, categorising them into Scope 1, 2, and 3.

Greenhouse Gases (GHGs)

Gases that trap heat in the Earth’s atmosphere, contributing to global warming. Key examples include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases.

Impact Category

An environmental issue assessed in sustainability evaluations, such as climate change, water use, or pollution.

Indirect Emissions

GHG emissions that occur as a result of a company’s activities but from sources it does not own or directly control, such as electricity use or supply chain emission.

ISO (International Organisation for Standardisation)

An international body that develops voluntary standards for quality, safety, and environmental management like ISO 14001.

Kyoto Protocol

An international treaty that commits industrialised countries to reducing greenhouse gas emissions, based on the premise that (a) human-made greenhouse gas emissions are causing global warming, and (b) these emissions should be reduced to levels that would prevent dangerous human interference with the climate system.

Life Cycle Assessment (LCA)

A method for evaluating the environmental impact of a product or process from raw material extraction through to manufacturing, use, and disposal or recycling.

Net Zero

A state where a company or country removes as much GHG from the atmosphere as it emits, typically through a mix of reductions and offsets.

Organisational Carbon Footprint (OCF)

The total greenhouse gas emissions of a company, including both direct (Scope 1) and indirect (Scope 2 and 3) emissions.

Paris Agreement

A global treaty adopted in 2015 that commits countries to limit global warming well below 2°C and pursue efforts to stay within 1.5°C.

Renewable Energy (RE)

Energy from natural, replenishable sources like solar, wind, hydro, and geothermal power.

Scope 1

Direct emissions from owned or controlled sources, such as fuel combustion in company vehicles or facilities.

Scope 2 Emissions

Indirect emissions from purchased electricity, heating, and cooling.

Scope 3 Emissions

All indirect emissions in a company’s value chain, such as those from suppliers, business travel, and product use.

Sustainable Development Goals (SDGs)

A set of 17 global goals established by the UN to address environmental, social, and economic challenges, including climate action.

Sustainability Framework

A structured approach that helps businesses assess and manage their sustainability efforts across key environmental and social areas.

Sustainability Reporting

The process of disclosing an organisation’s environmental and social impact, often aligned with standards like GRI, CDP, or CSRD.

Science Based Targets initiative (SBTi)

A global initiative that helps businesses set emissions reduction targets aligned with climate science and the 1.5°C goal.

Supply Chain Sustainability

The integration of environmentally and socially responsible practices into a company’s supply chain to reduce overall impact.

Supply Chain

The entire process of producing and delivering a product, from raw materials to the final customer.

Water Use

The total volume of water consumed across a product’s life cycle, including both direct (e.g., for cooling or processing) and indirect (e.g., water embedded in raw materials) consumption.