Sustainability Glossary

Absolute Emissions / Gross Emissions

Both terms describe the total greenhouse gases emitted before any offsetting or removals are applied. “Gross” and “absolute” are often used interchangeably. For example, a company may report gross emissions of 1,000 tonnes CO₂e, then show net emissions of 900 tonnes after purchasing removals or offsets. Climate strategies emphasise cutting gross emissions first – only then should offsets be used to neutralise residuals.

Adaptation (Climate Adaptation)

The process of adjusting to actual or expected climate change and its effects. Adaptation seeks to moderate harm or exploit beneficial opportunities. For example, building sea walls to cope with rising sea levels or adopting drought-resistant crops are adaptation measures. The goal is to increase resilience to climate impacts already in motion.

Additionality

A crucial test for any carbon offset project. In simple terms, it means the emissions reductions would not have happened anyway without the project’s existence. A high-quality carbon offset has to prove it is “additional” to business-as-usual. For example, a wind farm that was only built because it received funding from selling carbon credits provides additional savings; one that would have been built regardless does not.

B Corp

A certification for businesses that meet high standards of social and environmental performance, accountability, and transparency. B Corp status is granted by the non-profit B Lab to companies that undergo a rigorous assessment across areas like governance, worker treatment, community impact, and environmental practices. Most companies look for external professional support to guide them with their B Corp certification. Certified B Corporations legally commit to balancing profit with purpose, considering the interests of all stakeholders, not just shareholders.

Battery Storage (Battery Energy Storage Systems)

Technologies that store electrical energy for later use via chemical batteries. Battery storage systems enable energy from renewables (like solar or wind) to be saved and released on demand. By balancing supply and demand on the grid, battery storage supports integration of intermittent renewables and improves energy resilience.

Beyond Value Chain Mitigation

This is a commitment to take climate action outside your company’s own operations and supply chain. The idea is simple: after you’ve set science-based targets and are working hard to cut your own emissions, you also fund projects that speed up the wider transition to net zero. This could mean investing in high-quality carbon removals or projects that prevent emissions elsewhere. BVCM is seen as a way to take responsibility for the emissions you can’t yet eliminate on your journey to net zero, but it should never replace deep cuts within your own value chain.

Biodiversity

The variety of life in all forms – including the diversity of species, genetic variation within species, and the range of ecosystems. High biodiversity underpins ecosystem services that businesses and society rely on (such as pollination, water purification, and climate regulation). Biodiversity loss, driven by habitat destruction, climate change, pollution, etc., is a major sustainability concern.

Biofuels

Fuels produced directly or indirectly from organic material (biomass), including plant materials and animal waste. Common biofuels are ethanol (from corn or sugarcane) and biodiesel (from vegetable oils or animal fats), as well as biogas. Because the carbon in biofuels was recently absorbed from the atmosphere by plants, biofuels can have a smaller net carbon footprint than fossil fuels (though this varies with production practices).

Carbon Accounting

The process of measuring and quantifying an organisation’s greenhouse gas emissions (often expressed in CO₂-equivalents) from its activities. Carbon accounting (also known as carbon footprinting) follows standards like the GHG Protocol to categorise emissions into scopes and provides the data for setting targets and tracking progress in emissions reduction. Essentially, it is “carbon bookkeeping” – tracking emissions sources and amounts.

Carbon Budget

Think of this as the world’s remaining carbon “allowance”. It’s the total cumulative amount of CO₂ we can still emit into the atmosphere while keeping global warming to a specific target, like the Paris Agreement’s goal of 1.5°C. Scientists at the IPCC estimate this budget is shrinking fast. Exceeding it means we are locked into breaching critical temperature thresholds.

Carbon Capture and Storage (CCS)

A technology and process for reducing emissions by capturing CO₂ from large point sources (like power plant flue gas or industrial processes) or directly from the air, and then transporting and storing it in geological formations (such as depleted oil reservoirs or deep saline aquifers) so it does not enter the atmosphere. For example, a coal power plant equipped with CCS can trap a significant portion of its CO₂ emissions and inject them underground, thus lowering its effective emissions.

Carbon Credit

A tradable unit that typically represents one tonne of CO₂ (or equivalent GHG) removed or reduced from the atmosphere. Carbon credits are earned by projects that reduce emissions beyond a baseline (additional projects) – for example, a forestry project that sequesters carbon or a clean cookstove project that cuts CO₂ emissions. Companies can buy these credits to meet voluntary or compliance targets. In cap-and-trade systems, credits (or allowances) might be issued under an emissions cap. In voluntary markets, credits often come certified by standards (like Gold Standard or VCS) to ensure the underlying reductions are real and additional.

Carbon Emissions

A broad term often used to mean the release of carbon dioxide (CO₂) into the atmosphere from human activities. It is sometimes used interchangeably with “greenhouse gas emissions,” though technically CO₂ is just one GHG (albeit the largest contributor to human-driven climate change). Common sources of carbon emissions are burning fossil fuels (coal, oil, gas) for electricity, heat, and transport, as well as deforestation and cement production.

Carbon Footprint

The total greenhouse gas emissions caused directly and indirectly by an individual, organisation, event, or product, typically expressed in tonnes of CO₂-equivalent. A carbon footprint encompasses all relevant emissions over a defined lifecycle or period. For example, a product’s carbon footprint would include emissions from raw material extraction, manufacturing, transport, use, and disposal. Measuring carbon footprints helps identify major emission sources and opportunities to reduce them.

Carbon Footprint Calculators

Digital tools that estimate or track the carbon footprint of an entity. A carbon footprint calculator is often an online tool where users input data (like energy use, travel, etc.) to get an approximate emissions total. It’s important to remember that these online carbon footprinting calculators aren’t a good fit for everyone. Carbon management software refers to more complex enterprise systems that collect data across a company’s operations and supply chain, calculate emissions (Scope 1, 2, 3), and help manage reduction efforts. These software platforms enable companies to monitor their emissions in real time and model the impact of different reduction strategies.

Carbon Intensity

A metric that measures how carbon-efficient your business is. It’s the amount of GHG emissions produced per unit of a specific activity — for example, tonnes of CO₂ per product made, or kg of CO₂ per pound of revenue. While reducing your carbon intensity is good (it means you’re more efficient), it’s important to remember that if your business grows significantly, your absolute emissions could still go up.

Carbon Insetting

A climate strategy in which a company invests in emissions reduction or removal projects within its own value chain (as opposed to offsetting, which often involves projects unrelated to the company’s core operations). Insetting might involve working with suppliers or communities directly connected to the business. For example, a coffee company could support reforestation or clean energy in the farming communities that grow its beans – reducing supply chain emissions and benefiting those communities. Carbon insetting projects yield carbon benefits that the company can count toward its climate goals, while also strengthening the value chain.

Carbon Negative (Climate Positive)

A state where an organisation or activity goes beyond net zero emissions to actually remove more carbon from the atmosphere than it emits. In practice, a carbon-negative (or climate-positive) company first reduces its direct and indirect emissions as much as possible, then offsets or removes more CO₂ than the remaining emissions. The result is an overall negative carbon footprint – effectively making a positive contribution to climate by reducing atmospheric CO₂.

Carbon Neutral

A state of balancing carbon emissions with carbon removal or offsets so the net addition of CO₂ to the atmosphere is zero. For an organisation or product to be carbon neutral, it should reduce its own emissions as much as possible, then compensate for the remainder by purchasing high-quality offsets or removals. Carbon neutral claims are usually made at product or organisational level and often follow standards such as PAS 2060. They differ from net zero targets, which usually require much deeper cuts across all scopes before any residual emissions can be neutralised.

Carbon Offsetting

The practice of investing in an environmental project elsewhere to compensate for emissions you produce. Each “offset” or carbon credit you buy represents one tonne of CO₂ removed or avoided by that project, which could be anything from a tree-planting initiative to a renewable energy farm. It’s a way to balance your carbon footprint. However, carbon offsetting is a controversial topic; it doesn’t reduce your own emissions, so it should only be considered a last resort after you’ve done everything possible to cut emissions within your own operations.

Carbon Reduction

Actions that result in lowering greenhouse gas emissions output. Carbon reduction can be achieved through energy efficiency improvements, shifting to renewable energy, changing processes, etc. For example, replacing a diesel truck fleet with electric vehicles reduces emissions. Many companies have carbon reduction targets (absolute or intensity-based) to cut their footprint over time. “Carbon reduction projects” often refer to initiatives that directly prevent or remove emissions (e.g. installing a wind farm prevents emissions from a coal plant, or planting trees removes CO₂ from the air).

Carbon Shadow

Your carbon shadow looks beyond a tidy footprint. It captures emissions you influence through decisions about money, voice and time, as well as what you buy or burn. Think where you bank, how you vote, which policies you back at work, and the suppliers you reward. The term gained attention as an antidote to narrow accounting. It reminds leaders that influence travels far beyond scopes on a spreadsheet. Use it to shape culture and incentives, not to dodge hard numbers. A firm with a modest footprint can still cast a long shadow through lobbying, financing and product design. Bring this lens into board conversations, but keep measuring and cutting emissions with recognised methods at the same time.

Carbon Removal

Technologies or practices that physically take carbon dioxide out of the atmosphere and lock it away. Examples include natural methods like planting trees or restoring wetlands, as well as engineered solutions like direct air capture machines or bioenergy with carbon capture and storage (BECCS). Carbon removal is seen as a complement to emission reduction – helping to counteract hard-to-eliminate emissions and reach climate goals by actively drawing down CO₂ levels.

Carbon Tax

A fee imposed on the carbon content of fossil fuels, effectively charging emitters a price for each tonne of CO₂ released. For example, a carbon tax might add a surcharge on each tonne of coal, cubic metre of gas, or litre of petrol, based on its carbon emissions. The purpose is to internalise the social cost of carbon emissions – making emitting activities more expensive to drive businesses and consumers toward cleaner alternatives. Unlike cap-and-trade (where the market sets the price of carbon allowances under a cap), a carbon tax sets a fixed price per tonne and lets the market adjust emission levels in response to that price.

CBAM (EU Carbon Border Adjustment Mechanism)

An EU measure that puts a carbon price on certain imported goods so they face the same carbon cost as EU-made products. It began with reporting only from October 2023 to December 2025. From January 2026, importers must buy CBAM certificates that reflect the embedded emissions in goods such as iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. If you export these into the EU, expect your buyer to ask for robust emissions data to complete their filings.

CDP (Carbon Disclosure Project)

CDP runs the world’s main environmental disclosure system for companies, cities and regions. Each year you receive standard questionnaires covering climate, water and forests. You respond through CDP’s portal, then CDP scores you from A to D minus and publishes results many investors and large customers use. The process pushes you to quantify risks, set targets, and disclose governance and transition plans in a consistent way. In 2024 CDP shifted to a single corporate questionnaire across themes, with 2025 bringing only light changes, so you can build stable internal processes. If you have suppliers, expect CDP requests to cascade down the chain. If you want to move your score, focus on data quality, board oversight, credible targets and evidence of delivery, not glossy promises.

CSDDD (Corporate Sustainability Due Diligence Directive)

CSDDD creates a legal duty for very large companies to run ongoing human rights and environmental due diligence across their own operations, subsidiaries and chains of activities. The law entered into force on 25 July 2024. Member States must transpose it, then rules apply in waves by company size and turnover, beginning with the very largest and expanding over time. Current texts point to thresholds of 1,000 employees and €450 million turnover for core scope, while the first application wave focuses on even larger groups, then steps down. The Commission has proposed minor timetable adjustments, but the direction is settled. If you are an SME supplying larger customers, expect code of conduct clauses, data requests and remedy pathways rather than direct legal duties. Build practical risk mapping and grievance routes now. You will need evidence, not policy wallpaper.

Circular Economy

An economic model aimed at eliminating waste and the continual use of resources through principles of reuse, sharing, repair, refurbishment, remanufacturing, and recycling. Unlike the traditional linear economy (take–make–dispose), a circular economy keeps products and materials in circulation for as long as possible. For businesses, this could mean designing products for longevity and recyclability, recovering materials at end of life, and using recycled inputs. The goal is to reduce the need for new raw materials and minimise waste and environmental impact.

Closed-Loop Recycling

A recycling process in which a material is recycled into the same product (or a product of similar type and quality) in a continuous loop. For example, used aluminium cans can be recycled into new aluminium cans repeatedly without material degradation. In a closed-loop system, the material effectively circulates indefinitely, reducing the need for virgin material extraction. (By contrast, open-loop recycling turns materials into different types or lower-quality products, which may eventually end up as waste.)

Climate Change

Broadly, long-term changes in temperature and weather patterns. In common usage today, “climate change” refers to the rapid global warming and associated disruptions to climate patterns driven by human activities, especially the burning of fossil fuels and deforestation. Key indicators of climate change include rising global temperatures, melting ice caps and glaciers, sea level rise, and increased frequency of extreme weather events (storms, droughts, heatwaves, wildfires). Tackling climate change involves both mitigation (reducing greenhouse gas emissions) and adaptation.

Climate Justice

A term and movement recognising that climate change has unequal impacts on different communities and that solutions must address these inequities. Climate justice frames climate change as an ethical and political issue, not just environmental or physical. It means putting equity and human rights at the core of climate action. For example, climate justice advocates point out that low-income populations and developing nations (who have contributed least to greenhouse gas emissions) often face the greatest climate vulnerabilities. Ensuring a just distribution of burdens and benefits – and giving marginalised communities a voice in climate decisions – is central to climate justice.

Climate Risk

The potential negative consequences of climate change on an organisation or system. Climate risks are often divided into two categories: physical risks and transition risks. Physical risks arise from climate-related hazards (like storms, floods, wildfires, heatwaves, sea-level rise) that can damage assets, disrupt supply chains, or affect operations. Transition risks stem from the shift toward a low-carbon economy – for example, policy changes (carbon pricing, regulations), technological changes, market preferences, and reputational factors that could affect a business reliant on high-carbon processes. Companies are increasingly assessing climate risk in their strategic planning (as guided by frameworks like TCFD).

Corporate Social Responsibility (CSR)

A long-standing concept where businesses voluntarily take action to be more accountable for their impact on society and the environment. CSR goes beyond legal compliance and can include anything from community philanthropy and ethical labour practices to reducing pollution. While still widely used, the principles of CSR have evolved into the more data-driven and comprehensive framework of ESG (Environmental, Social, and Governance).

Decarbonisation

The process of reducing and ultimately eliminating carbon dioxide emissions from economic activities. Decarbonisation involves transitioning away from fossil fuels toward low-carbon energy sources (like renewables), improving energy efficiency, electrifying processes (since electricity can be generated by renewables), and other innovations to cut CO₂ output. It is central to meeting climate targets; for example, the power sector decarbonising means shifting from coal/oil/gas power plants to wind, solar, hydro, nuclear, etc.

Double Materiality

A key principle in modern sustainability reporting, especially under EU rules like CSRD. Think of it as a two-way assessment. It requires a company to report on:

• Financial Materiality: How sustainability issues (like climate change or water scarcity) could create financial risks or opportunities for the company (outside-in view).

• Impact Materiality: How the company’s own activities impact people and the planet (inside-out view).

This ensures a complete picture, looking at both the risks to the business and the business’s impact on the world.

Doughnut Economics

A framework that defines a safe and just operating space for humanity. The “doughnut” has a social foundation below which people fall short of basic needs, and an ecological ceiling beyond which we overshoot planetary limits. Businesses can use it to balance growth with environmental and social responsibility.

Downstream Emissions

Greenhouse gas emissions that occur as a result of a company’s products or services after they leave the company’s direct control. These are the “downstream” Scope 3 emissions in a value chain – for example, emissions from customers using a product (like the fuel burned when driving a car the company sold, or electricity consumed by an appliance during its use) and from the product’s end-of-life disposal or recycling. Managing downstream emissions often involves making products more energy-efficient, offering recycling/take-back programmes, or otherwise influencing how customers use and dispose of the product to reduce its overall footprint.

Ecovadis

A global sustainability ratings platform that assesses companies on environmental, labour, ethics, and procurement practices. Many buyers use Ecovadis scores to screen and monitor suppliers. A strong score helps demonstrate ESG performance and win tenders.

Electric Vehicles (EVs)

Vehicles that are powered by electricity instead of petrol or diesel. EVs use one or more electric motors and battery packs (which are charged from an external power source) to drive the vehicle. They produce zero tailpipe emissions (no direct CO₂ or pollutants while driving). Examples include battery electric cars like the Tesla Model 3 or Nissan Leaf. EVs are a key technology for decarbonising the transport sector, especially when the electricity they use comes from renewable sources.

Electrification

The process of switching systems or devices from a non-electric energy source (often fossil fuels) to electricity. Examples include electrifying transportation (from combustion-engine cars to electric cars) or electrifying heating (from oil/gas boilers to electric heat pumps). Electrification is a major strategy for decarbonisation because it enables the use of clean electricity (from renewables) in place of direct fossil fuel burning. It often improves energy efficiency as well (e.g. electric motors are more efficient than internal combustion engines).

Emissions Factors

Emissions factors convert activity data into greenhouse gas numbers. Litres of diesel become kilograms of CO₂e. Kilowatt hours of grid electricity become location-based and market-based emissions. In the UK most organisations use the government conversion factors, updated annually, with detailed methodology notes on fuels, electricity, refrigerants, waste and travel. The Greenhouse Gas Protocol provides methods and tools, and points to sector- and geography-specific sources where needed. Treat factors like any other reference data. Version control them, document choices, and keep them in step with your reporting year and geography. Explain major changes when factors move between years. If you cannot measure directly, say so, but avoid black-box calculators.

Energy Efficiency

Using less energy to provide the same service or output. An energy-efficient building, for instance, achieves the same level of heating, cooling, and lighting while consuming less power (through better insulation, LEDs, efficient HVAC, etc.). Energy efficiency improvements mean reducing energy waste – for example, an LED bulb can produce the same amount of light as an old incandescent bulb while using a fraction of the electricity. For businesses, boosting energy efficiency cuts costs and emissions simultaneously.

Energy Savings Opportunity Scheme (ESOS)

A UK regulation that requires large businesses to carry out detailed energy audits every four years. Companies above certain employee or turnover thresholds must measure their total energy consumption across buildings, industrial processes, and transport, and identify cost-effective energy saving measures. The idea behind ESOS is to spur energy efficiency improvements – by highlighting opportunities to cut energy waste, businesses can save on costs and reduce carbon emissions. While there is no mandatory implementation of the audit findings, the scheme raises awareness at the board level and often leads to voluntary energy-saving investments.

Environmental Product Declaration (EPD)

An EPD is a third-party verified report that sets out a product’s environmental profile across its life cycle using an LCA. It is a Type III environmental declaration under ISO 14025. In construction, core rules sit in EN 15804, then product-specific rules add detail for categories like concrete, timber and building hardware. EPDs allow like-for-like comparisons and are increasingly asked for in tenders, ratings and low-carbon design tools. They do not say a product is “green”. They provide consistent data so buyers can choose lower impact options. If you are a manufacturer, build solid inventory data and select the right programme operator. If you are a buyer, check the declared unit, system boundaries, and whether modules A to C and benefits beyond the system are included. Small details change results.

Environmental, Social, and Governance (ESG)

A trio of factors used to evaluate a company’s sustainability and ethical impact. Environmental criteria consider how a company performs as a steward of nature (carbon footprint, pollution, resource use). Social criteria examine how it manages relationships with employees, suppliers, customers, and communities (labour practices, product safety, diversity and inclusion). Governance deals with leadership, audits, internal controls, and shareholder rights. ESG has become a framework for investors to assess companies’ long-term risks and opportunities beyond financial metrics, and many companies now publish ESG reports or have ESG departments.

CSRD (Corporate Sustainability Reporting Directive)

CSRD rewrites sustainability reporting for Europe. If you are in scope, you must report using detailed ESRS standards, apply double materiality, cover strategy, risks, metrics and targets, and obtain assurance on parts of the report. The first wave applies for financial year 2024 with reports published in 2025, and more companies phase in after that. ESRS are prescriptive, but there are transitional reliefs to help first-year reporters. The Commission has also moved to ease early burdens without changing the core direction. If you sell to EU-listed groups, prepare for data requests even if you are not directly in scope. Treat this like financial reporting. Start with a tight materiality process, map data owners, then close gaps methodically. Assurance will test your controls, not your slide deck.

EU Taxonomy

The EU Taxonomy is a classification system defining which economic activities are considered environmentally sustainable (green) for investment purposes. It sets technical criteria for activities to qualify as making substantial contributions to climate change mitigation, adaptation, and other environmental objectives, while not doing significant harm to any objective. The taxonomy guides investors and companies in identifying “sustainable” activities – for example, certain renewable energy projects or building renovations may be taxonomy-aligned, whereas activities like new coal power would not. It’s essentially a science-based dictionary of green activities to prevent greenwashing in financial markets.

Emissions Trading (Carbon Market / Cap-and-Trade)

A market-based mechanism for reducing greenhouse gas emissions by putting a cap on total emissions and allowing companies to buy and sell emission allowances. In an Emission Trading System (ETS), the government sets an emissions cap (which typically lowers over time) and issues allowances (permits) equal to the cap. Companies that reduce emissions below their allotment can sell excess allowances, while those exceeding must buy allowances to cover the difference. This creates a carbon price and financial incentive to cut emissions. The EU ETS is the largest example, covering power plants and industries in Europe. Emissions trading is often referred to as cap-and-trade.

EU ETS (EU Emissions Trading System)

The world’s largest carbon market, covering power stations, industry, and aviation within Europe. EU ETS sets a cap on total emissions and issues tradable allowances. Companies that cut emissions can sell allowances, while those exceeding their limits must buy them. The cap shrinks over time to drive decarbonisation.

EUDR (EU Deforestation Regulation)

EU rules that ban products linked to deforestation or forest degradation after 31 December 2020. They cover cattle, cocoa, coffee, oil palm, rubber, soya and wood, plus many derived items. Operators must conduct due diligence, trace supply to the plot with geolocation, and file a digital statement before placing goods on the EU market or exporting. Application starts on 30 December 2025 for medium and large operators and traders, and on 30 June 2026 for micro and small businesses.

Extended Producer Responsibility (EPR)

A policy principle that holds producers responsible for the end-of-life management of their products and packaging. Under EPR schemes, producers must take back, recycle, or dispose of products (like electronics, batteries, packaging) once consumers are done with them. This shifts the financial and logistical burden of waste management from governments/consumers to producers, incentivising companies to design more recyclable and less wasteful products. Examples: electronics manufacturers funding e-waste recycling programmes, or deposits on beverage containers to ensure their return.

Fossil Fuels

Energy sources like coal, oil, and natural gas that come from the fossilised remains of ancient plants and animals. Fossil fuels are hydrocarbon-rich and have been the dominant energy source for modern economies, but burning them releases CO₂ and other pollutants. Fossil fuels are non-renewable (they take millions of years to form). Phasing down fossil fuel use (or capturing their emissions) is central to combating climate change, since they are responsible for the majority of human-induced CO₂ emissions.

GHG Protocol

The Greenhouse Gas Protocol is the world’s most widely used framework for measuring and managing greenhouse gas emissions from private and public sector operations and value chains. It provides standards for classifying emissions into Scope 1, 2, and 3, and gives guidance on accounting for emissions reductions (projects) as well. The GHG Protocol underpins many corporate carbon accounting and reporting efforts (including ISO 14064 and programmes like CDP).

Green Buildings

Buildings designed or renovated to minimise environmental impact and enhance occupant well-being. Green buildings typically use less energy and water, incorporate sustainable and non-toxic materials, and provide healthy indoor environments. Examples of green building features include high insulation, solar panels, efficient HVAC systems, natural lighting and ventilation, rainwater harvesting, and green roofs. Certification systems like LEED or BREEAM set standards and verify green building performance. In short, a green building is one that is environmentally responsible and resource-efficient throughout its life cycle.

Green Claims Code

Guidance introduced by the UK’s Competition and Markets Authority (CMA) to prevent greenwashing in marketing. The Green Claims Code sets out principles that environmental claims must be truthful, clear, and backed by evidence. In practice, if a business advertises a product or service as “eco-friendly” or “sustainable,” it must ensure the claim is accurate and specific (for instance, avoiding vague terms or misleading comparisons). Companies following the code will substantiate claims (with data or certification), make sure claims apply to the whole product (or clearly state if only part of it is sustainable), and not hide important information. The code helps consumers trust green claims and pushes firms to be transparent about their environmental impact.

Green Hydrogen

Hydrogen fuel produced in a low-carbon way, typically by using renewable electricity to split water via electrolysis. When the electricity input is from wind, solar, or hydro, the resulting hydrogen is often called green hydrogen because the process emits virtually no CO₂. Green hydrogen can be used as a clean energy carrier – burned for heat or run through a fuel cell to produce electricity – with water as the only direct by-product. (This contrasts with “grey” hydrogen made from natural gas, which does release CO₂, or “blue” hydrogen where CO₂ is captured.)

Greenhouse Gases (GHGs)

Gases that trap heat in Earth’s atmosphere, contributing to the greenhouse effect. Key GHGs include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases like HFCs. Human activities since the Industrial Revolution have sharply increased GHG concentrations, leading to global warming. In corporate sustainability, GHG accounting covers all these gases (converted to CO₂-equivalents based on their global warming potential). Water vapour is also a greenhouse gas but is not directly emitted in significant amounts by human activity (it’s part of feedback effects).

Greenwashing

The practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or company to present an environmentally responsible public image. In other words, greenwashing is when companies spend more time and money on marketing themselves as “green” rather than actually minimising their environmental impact. Examples: a fashion brand advertising a “sustainable” collection that in reality is a tiny portion of its business, or a company using vague terms like “eco-friendly” without proof. Greenwashing can erode trust and is increasingly a reputational and regulatory risk (e.g. authorities can pursue false environmental advertising claims).

GRI (Global Reporting Initiative)

GRI Standards are the most used framework for reporting real-world impacts on people, planet and the economy. The 2021 Universal Standards reset the foundation and came into effect for reporting from January 2023. They require clear statements on material topics, due diligence and human rights, and link to sector standards that add context. Many organisations blend GRI with investor-focused rules to address both stakeholder and financial audiences. If you use GRI well, you avoid cherry-picking. Map impacts, set boundaries, then disclose consistent metrics and narrative on what changed and why. Treat the standards as a discipline. They will force you to prioritise, explain trade-offs, and show evidence, not aspiration.

Heat Pumps

Highly efficient electric devices for heating (and cooling) that transfer heat from one place to another. Common types are air-source heat pumps (which extract heat from outside air) and ground-source (geothermal) heat pumps (which draw heat from the ground). In winter, a heat pump works like an air conditioner in reverse – it uses a refrigerant cycle to move heat from the cold outdoors into a warm house. In summer the process can reverse to provide cooling. Heat pumps can deliver the same heating/cooling with far less energy than direct electric heating or fossil boilers, making them critical for building decarbonisation.

HVO (Hydrotreated Vegetable Oil)

A type of renewable diesel fuel made by hydrogenating vegetable oils or animal fats. HVO is often called “renewable diesel” – it’s a drop-in replacement for conventional diesel fuel but can reduce lifecycle greenhouse gas emissions by 50–90% compared to fossil diesel (depending on feedstock and process) because it’s made from bio-based feedstocks (e.g. waste cooking oil). The hydrotreating process removes oxygen from the oils, creating hydrocarbons very similar to petroleum diesel, which means HVO can be used in diesel engines without modification.

Hydrogen

The simplest and most abundant element, often discussed as a clean energy carrier. In sustainable business context, hydrogen usually refers to hydrogen gas (H₂) used as a fuel. When used in a fuel cell or combusted, hydrogen combines with oxygen to produce water, releasing energy with zero CO₂ at point of use. However, producing hydrogen requires energy. “Green hydrogen” uses renewable electricity for electrolysis (splitting water), making it very low-carbon. Hydrogen can also be produced from natural gas with CO₂ capture (“blue hydrogen”) or without capture (“grey hydrogen”). Hydrogen has applications in hard-to-decarbonise sectors: it can fuel fuel-cell vehicles, serve as feedstock for steel or fertiliser with lower emissions, or store renewable energy.

Impact Investing

An investment approach where investors intentionally seek to generate positive, measurable social or environmental impacts alongside a financial return. For example, an impact fund might invest in renewable energy companies, affordable housing, or social enterprises. Impact investing often focuses on areas aligned with the UN Sustainable Development Goals. It differs from traditional investing by putting impact objectives at the core of investment selection and by measuring the outcomes (e.g. tonnes of CO₂ avoided, number of lives improved) in addition to financial performance.

IPCC (Intergovernmental Panel on Climate Change)

The United Nations body of scientists that evaluates and synthesises the latest climate change research. The IPCC releases comprehensive assessment reports every 5–7 years (e.g. AR6 in 2021–2022) that cover the physical science of climate change, impacts and adaptation, and mitigation options. IPCC reports are considered the gold standard of climate science consensus. They inform international climate policy (like the Paris Agreement) by quantifying climate risks and pathways to limit warming.

ISSB (International Sustainability Standards Board)

The ISSB sets global baseline standards for investor-grade sustainability disclosures under the IFRS Foundation. Its first two standards, IFRS S1 and IFRS S2, are effective for periods beginning 1 January 2024, subject to local adoption. S1 covers general sustainability risks and opportunities, and S2 covers climate. Both build on TCFD with clear requirements for governance, strategy, risk management, metrics and targets. Jurisdictions are now moving to adopt or align. The ISSB is focused on implementation support and on enhancing SASB industry materials that companies must consider when applying S1. If you already report to TCFD, close the gaps to S1 and S2, then use the SASB topics to sharpen industry specificity. Investors will compare you to peers, so be concrete.

ISO 14001

An international standard for Environmental Management Systems (EMS). ISO 14001 outlines requirements for organisations to establish, implement, maintain, and continually improve an EMS. Companies certified to ISO 14001 have a structured approach to managing environmental aspects, ensuring legal compliance, setting environmental objectives, and seeking continual improvement in performance (e.g. reducing waste, preventing pollution). It’s often used to signal to stakeholders that a company has strong environmental management practices in place.

ISO 50001

An international standard for energy management systems. It helps organisations establish frameworks to improve energy efficiency, reduce costs, and lower emissions. Certification shows a systematic approach to managing energy and is often requested in tenders.

Lifecycle Assessment (LCA)

A systematic analysis of the environmental impacts of a product or service throughout its entire life cycle – from raw material extraction to production, distribution, use, and end-of-life disposal. Often called a “cradle-to-grave” analysis (or cradle-to-gate if it stops at factory exit). LCA looks at various impact categories (carbon footprint, water footprint, toxicity, etc.) across all stages. Businesses use LCA to identify stages with the largest impacts and to inform eco-design (making products more sustainable by considering their full lifecycle).

Low-Carbon Economy

An economy that has a minimal output of greenhouse gas emissions. In a low-carbon economy, energy is generated from low/no-carbon sources (renewables, nuclear, etc.), efficiency is high, and processes across sectors (power, transport, industry) are either electrified or use alternative fuels so that the overall carbon intensity is very low. The Paris Agreement calls for achieving a net-zero global economy in the second half of the century – effectively creating a low-/zero-carbon economy to stabilise the climate.

Materiality

A principle for figuring out which sustainability topics are most important for your business to manage and report on. A topic is “material” if it meets one or both of these criteria:

• It could significantly impact your company’s financial performance, risks, or opportunities.

• It is of high importance to your key stakeholders (like customers, employees, or the local community).

For example, water scarcity would be a material issue for a beverage company. The process of identifying these key topics is called a materiality assessment, and it is the foundation of any good sustainability strategy or report.

Mitigation (Climate Mitigation)

Actions to reduce the pace and magnitude of climate change by limiting greenhouse gas emissions or enhancing carbon sinks. Mitigation examples include shifting to renewable energy, improving energy efficiency, developing low-carbon technologies, and protecting or expanding forests to absorb CO₂. Essentially, mitigation = reducing the cause of climate change. It complements adaptation, which deals with coping with effects. Achieving deep mitigation (like reaching net-zero emissions globally around 2050 for 1.5°C) is necessary to avoid the worst impacts of climate change.

Net Zero

A state in which the total greenhouse gases emitted by an entity (country, company, etc.) are balanced by an equivalent amount of greenhouse gases removed from the atmosphere, resulting in a net of zero. Achieving net zero typically involves deep emissions cuts and then neutralising any hard-to-eliminate residual emissions with removals (like carbon capture or tree planting). The term “net zero” is often attached to a target year, e.g. “net zero by 2050,” in line with global climate goals. Net zero carbon (or net zero CO₂) refers specifically to carbon dioxide, whereas net zero GHG covers all greenhouse gases in CO₂-equivalent.

NHS Evergreen

A self-assessment tool required for suppliers to the NHS. It’s designed to show how your business aligns with the NHS’s net zero and sustainability goals, building on the requirements of PPN 006 (formerly known as 06/21). Suppliers are ranked across different maturity levels. To work with the NHS, you’ll need to meet the minimum level of NHS Evergreen, but it’s wise to plan for higher levels of compliance to ensure your business remains a valued partner in the future.

Operational Emissions (Scope 1 and 2)

The direct greenhouse gas emissions from a company’s own operations plus the indirect emissions from the energy it purchases. Scope 1 emissions are those from sources owned or controlled by the company – for example, on-site fuel combustion (boilers, furnaces), company-owned vehicles, or fugitive emissions from industrial processes. Scope 2 emissions are indirect emissions from the generation of purchased electricity (or heat/steam) that the company uses. Together, Scope 1 and 2 are often termed “operational emissions” since they are closely tied to the firm’s operations and energy use. Reducing these might involve equipment efficiency, fuel switching, or buying renewable power.

Paris Agreement

The landmark 2015 international climate accord adopted by 196 parties under the UNFCCC. The Paris Agreement aims to limit global warming to well below 2 °C above pre-industrial levels, and pursue efforts to limit it to 1.5 °C. Unlike Kyoto, it involves nationally determined contributions (NDCs) from all countries, which are plans outlining each country’s emission reduction goals, updated every five years. The Agreement also covers adaptation, climate finance, and a framework for transparency. A core Paris mechanism is the “global stocktake” to monitor progress toward its long-term goals (which include peaking emissions as soon as possible and achieving net zero in the second half of the century).

Physical Risk (Physical Climate Risk)

The risk of harm to assets, operations, or supply chains from the physical impacts of climate change. This includes acute risks from event-driven extremes (like hurricanes, floods, wildfires, heatwaves) and chronic risks from long-term shifts (such as rising average temperatures, sea-level rise, or desertification). Physical risks can manifest as property damage, higher insurance costs, supply interruptions, reduced employee productivity (e.g., during extreme heat), etc. For example, a coastal factory faces physical risk from more intense storms and sea level rise that could inundate the facility.

PPN 006 (Procurement Policy Note 006)

Formerly known as PPN 06/21, PPN 006 is a UK government directive issued that requires suppliers bidding on major central government contracts to commit to reaching Net Zero by 2050 and to publish a detailed Carbon Reduction Plan. Specifically, for any UK government procurement worth over £5 million per year, bidders must have a Carbon Reduction Plan disclosing their current greenhouse gas emissions (Scope 1, 2, some Scope 3) and the environmental management measures in place. PPN 06/21 is essentially using the government’s purchasing power to drive climate action in the private sector supply chain.

Procurement Policy (Sustainable Procurement)

Guidelines that govern how an organisation acquires goods and services, incorporating sustainability criteria. A sustainable procurement policy will typically require buyers to consider environmental impact (e.g. choosing products that are energy efficient, recycled, or low-waste) and social impact (fair labour practices in the supply chain) in addition to price and quality. For example, a company might have a policy to purchase paper that is FSC-certified, or to favour suppliers with strong ESG performance. The goal is to leverage purchasing decisions to promote sustainability throughout the supply chain.

Renewable Energy

Energy derived from naturally replenishing resources that are not depleted when used. Major categories include solar, wind, hydro (water), geothermal, and biomass energy. Unlike fossil fuels, most renewable energy sources produce little or no greenhouse gases during operation. Businesses buy renewable energy (through power purchase agreements or on-site installations) to reduce their carbon footprint. The growth of renewable energy is core to fighting climate change and often provides co-benefits like improved air quality and energy security.

Residual Emissions

The emissions that remain even after all feasible reduction measures have been implemented. In a net-zero strategy, residual emissions are the last bit that a company or country cannot eliminate and thus will typically need to be neutralised through carbon removal or offsets. For example, an airline in 2050 might still have residual emissions from aircraft that technology hasn’t fully decarbonised yet; those would be counterbalanced by removals (like direct air capture of CO₂). The aim is to minimise these residual emissions as much as possible through innovation and efficiency.

Resilience

The capacity of a system (a community, business, ecosystem, etc.) to withstand, adapt to, and recover from shocks and stresses while maintaining its essential functions. In a business context, resilience often refers to climate resilience – e.g. the ability to keep operations running or to recover quickly in the face of extreme weather, supply disruptions, or other climate impacts. Building resilience might involve physical fortifications (raising building elevations, diversifying supply chains) and organisational preparedness (disaster planning, insurance). It’s about bouncing back and potentially transforming to be better prepared for future disturbances.

SBTi (Science Based Targets initiative)

A partnership between organisations (including the UN Global Compact, WWF, and others) that helps companies set greenhouse gas emission reduction targets in line with climate science and the goals of the Paris Agreement. Under SBTi, companies submit emissions targets that align with limiting warming to well-below 2 °C or 1.5 °C, and the initiative validates them as “science-based”. For example, SBTi might approve a company’s target to cut absolute emissions 50% by 2030 as consistent with a 1.5 °C pathway. SBTi provides sector-specific guidance and is becoming a norm for credible corporate climate action.

Scope 1 Emissions

Direct greenhouse gas emissions from sources that are owned or controlled by the reporting company. This includes on-site fuel combustion (like in boilers or furnaces), emissions from company-owned vehicles or machinery, and fugitive emissions (like leaks from refrigeration or industrial processes). Scope 1 is essentially “fuel burned on-site or by company assets” plus process emissions.

Scope 2 Emissions

Indirect greenhouse gas emissions from the generation of purchased or acquired electricity, steam, heat, or cooling consumed by the reporting company. These emissions occur at the power plant (or other energy generator) but are attributed to the company that uses the energy. For instance, if a factory buys electricity from the grid, the power plant’s emissions for that electricity are the factory’s Scope 2. Companies can reduce Scope 2 by energy efficiency or by purchasing renewable energy.

Scope 3 Emissions

All other indirect emissions that occur in a company’s value chain, both upstream and downstream. Scope 3 often makes up the bulk of a business’s footprint and includes upstream sources like raw material extraction, supplier manufacturing, and business travel, as well as downstream sources like product use and end-of-life disposal. There are 15 categories defined by the GHG Protocol (e.g. purchased goods and services, capital goods, fuel- and energy-related activities, transportation and distribution, waste generated, customer use of products, etc.). Managing Scope 3 is challenging as these emissions are outside the company’s direct control, but many firms engage suppliers and design products to lower Scope 3.

Scope 4 (Avoided Emissions)

A non-standard term for the emissions reductions that happen outside your company’s value chain as a result of your product being used. For example, if you sell high-efficiency insulation, the “avoided emissions” are the energy savings your customers achieve in their homes. These are not counted in your official carbon footprint (Scope 1, 2, or 3), but can be reported separately to show the positive climate impact of your products compared to a business-as-usual baseline. Note that this is an emerging concept and is rarely a mandatory part of carbon reporting.

SECR (Streamlined Energy and Carbon Reporting)

A UK regulatory framework (in force since 2019) requiring large companies and LLPs to report annually on their energy use, greenhouse gas emissions, and related metrics in their directors’ reports. SECR applies to UK incorporated companies meeting certain size thresholds and mandates disclosure of Scope 1 and 2 emissions (and Scope 3 if material), an intensity ratio (e.g. emissions per turnover), and descriptions of energy efficiency actions taken. The aim is to encourage energy efficiency and transparency by simplifying and broadening mandatory carbon reporting (it replaced the CRC Energy Efficiency Scheme and aligned with annual financial reports).

Stakeholder Engagement

The process by which an organisation involves all parties who have an interest in or are affected by its decisions and activities. This can include employees, customers, suppliers, community members, NGOs, investors, and others. Effective stakeholder engagement means communicating transparently, seeking feedback, and collaborating where possible. For instance, a company planning a new factory might hold public meetings with the local community (stakeholders) to hear concerns and adjust plans accordingly. In sustainability, stakeholder engagement is crucial for identifying material issues, building consensus, and fostering goodwill.

SASB (Sustainability Accounting Standards Board)

SASB Standards are industry-specific disclosure topics and metrics now maintained by the ISSB. They help you decide which sustainability issues are financially material in your industry, and what to measure. The ISSB encourages continued use, and is updating the standards to improve international applicability and alignment with IFRS S2. Under IFRS S1, companies must refer to SASB to identify relevant risks, opportunities and metrics beyond climate. That makes SASB a practical bridge between strategy and numbers. Use the standards to pressure test your topic list, set KPIs and design controls. If a metric is hard to collect, that is often a sign to improve systems, not to drop the topic.

SFDR (Sustainable Finance Disclosure Regulation)

SFDR governs how EU financial firms disclose sustainability at both product and entity level. It requires firms to explain how they integrate sustainability risks and the adverse impacts their investments have on people and the environment. It also sets detailed templates for product disclosures and periodic reports. Market shorthand talks about Articles 6, 8 and 9, but the regime is under review, with work under way on product categorisation and improvements to principal adverse impact disclosures. If you sell into EU finance, expect structured questionnaires and taxonomy data asks. If you are a financial firm, treat data lineage and governance as core. Your worst risk is a claim that looks good but is not backed by positions or process.

Supply Chain Carbon Accounting

Measuring and managing greenhouse gas emissions that occur across a company’s supply chain. This essentially refers to accounting for Scope 3 emissions in the value chain – especially upstream emissions from suppliers (like emissions from producing purchased goods, transportation of raw materials, etc.). Companies conduct supply chain carbon accounting to identify which suppliers or purchased materials have the largest footprints and to work with them on reductions. For example, a retailer might calculate the carbon footprint of its sold products by adding up the footprints of raw materials, manufacturing, and logistics from all its suppliers. This often requires collecting data from suppliers or using industry emission factors.

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their own needs. This classic definition (from the Brundtland Commission) captures the balance of economic development, environmental protection, and social well-being. In business, “sustainability” often refers to the pursuit of environmental health, social equity, and economic viability in the company’s operations and supply chain. A sustainable business considers its long-term impact on the planet and people, not just short-term profits.

Sustainability Reporting

The practice of publicly disclosing information about an organisation’s ESG performance and impacts. Sustainability reports (also known as CSR reports or ESG reports) typically cover topics like greenhouse gas emissions, energy and water usage, waste and pollution, workforce diversity, labour practices, community engagement, and governance structure. The goal is transparency about how the company is managing sustainability issues and its progress towards goals. Frameworks for sustainability reporting include GRI, Integrated Reporting, SASB (for financial materiality), and now emerging standards like those from ISSB. Increasingly, these reports are not just nice-to-have; stakeholders (investors, customers, regulators) expect rigorous sustainability disclosure.

Synthetic Fuels (E-fuels)

Liquid or gaseous fuels produced from non-fossil sources through chemical processes, often using captured CO₂ and hydrogen from water. For example, combining green hydrogen (H₂ from electrolysis using renewable power) with captured CO₂ can yield synthetic methanol, petrol, diesel, or jet fuel via processes like Fischer-Tropsch synthesis. These electrofuels can be used in existing engines and infrastructure, potentially with far lower net emissions than petroleum fuels (because the CO₂ emitted on combustion was earlier taken from the atmosphere). However, making e-fuels is energy-intensive and currently expensive. Synthetic fuels are seen as a decarbonisation option for sectors hard to electrify (like aviation and heavy transport), provided the inputs (electricity and CO₂) are from sustainable sources.

Task Force on Climate-related Financial Disclosures (TCFD)

An influential framework developed by a G20 Financial Stability Board task force that provides guidance for companies on disclosing climate-related financial risks and opportunities. TCFD recommendations cover four pillars: Governance (board and management oversight of climate issues), Strategy (actual and potential impacts of climate risks/opportunities on the business, under different scenarios), Risk Management (processes for identifying and managing climate risks), and Metrics & Targets (how the company measures and targets climate-related performance). Many jurisdictions and stock exchanges are moving toward mandating TCFD-aligned disclosure. The idea is to inform investors and lenders of how climate change might affect a company’s future financial performance.

Transition Plan (Climate Transition Plan)

A detailed strategy that an organisation sets out to move from its current state to a low-carbon or net-zero emissions state by a specified date. A climate transition plan includes interim targets, timelines, and concrete actions across the business (like phasing out coal use, adopting EV fleets, investing in renewables, etc.) to achieve decarbonisation goals. It often also addresses the business model evolution – for example, how a utility will shift from fossil-based power to renewables, or how an oil company might diversify into clean energy. Investors increasingly ask companies for credible transition plans to ensure long-term strategies are Paris-aligned. Essentially, it’s the “how we’ll get there” roadmap for climate targets.

Transitional Climate Risks

Business risks from the global shift to a low-carbon economy. These include new regulations (like carbon pricing), rapid technology changes, changing consumer demand, and reputational pressures. High-carbon firms may face rising costs or stranded assets, while low-carbon competitors gain advantage.

TNFD (Taskforce on Nature-related Financial Disclosures)

A global initiative (launched in 2021) aiming to develop a framework for organisations to report and act on nature-related risks and opportunities, analogous to what TCFD does for climate. TNFD focuses on issues like biodiversity loss, natural resource depletion, and ecosystem services. It is creating guidance for companies and financial institutions to assess their dependencies and impacts on nature (for instance, a food company’s reliance on pollinators or a bank’s exposure to deforestation through lending). The ultimate goal is to direct financial flows in a way that protects and restores nature by improving transparency and risk management related to natural capital.

UK Emissions Trading Scheme (UK ETS)

A cap-and-trade programme for carbon emissions in the United Kingdom, launched in 2021 to replace the UK’s participation in the EU ETS after Brexit. The government sets an overall cap on greenhouse gas emissions for certain sectors (like electricity generation, heavy industry, and aviation), and companies in those sectors must hold allowances for each tonne of CO₂ they emit. Firms can buy and sell (trade) these carbon allowances in the market. Each year, the cap is designed to shrink, meaning fewer total allowances and therefore a tighter limit on emissions over time. By putting a price on carbon and a firm limit on emissions, the UK ETS incentivises businesses to cut their greenhouse gas emissions in the most cost-effective way (for instance, by investing in efficiency or low-carbon technology and selling surplus allowances if they emit less).

UN Sustainable Development Goals (SDGs)

A set of 17 interlinked global goals adopted by all UN member states in 2015 as part of the 2030 Agenda for Sustainable Development. The SDGs address broad societal challenges such as poverty (Goal 1), zero hunger (2), good health (3), quality education (4), gender equality (5), clean water (6), clean energy (7), decent work (8), industry and innovation (9), reduced inequalities (10), sustainable cities (11), responsible consumption and production (12), climate action (13), ocean protection (14), land/ecosystems protection (15), peace and justice (16), and partnerships (17). Businesses often align their sustainability strategies or CSR initiatives with relevant SDGs (for example, a water technology company might focus on SDG 6, or a healthcare firm on SDG 3).

Upstream Emissions

Greenhouse gas emissions that occur in the supply chain before a company’s own operations. “Upstream” covers all activities that provide inputs to the company – such as extraction and production of raw materials, manufacturing of components by suppliers, transportation of those materials to the company, and so on. For instance, for an auto manufacturer, upstream emissions include the steel, aluminium, and electronics produced by suppliers (and the mining of ore, etc. behind those). Managing upstream emissions might involve engaging suppliers to use renewable energy or low-carbon materials. In GHG Protocol terms, most upstream emissions are various categories of Scope 3 (Category 1: Purchased goods and services; Category 3: Fuel and energy-related emissions; Category 4/5: transportation and distribution of inputs; etc.).

Value Chain

The full network of activities, organisations, resources, and processes involved in creating and delivering a product or service from start to finish. This includes the entire supply chain (upstream value chain: suppliers of materials, components, logistics) and the downstream chain (distributors, retailers, customers, and end-of-life disposal or recycling). In sustainability, value chain emissions = all Scope 1, 2, and 3 emissions associated with a product or company. Managing value chain sustainability means not just improving one’s own operations but also collaborating with suppliers and customers.

Waste Hierarchy

A ranking of waste management strategies according to their environmental preferability. The typical hierarchy (from most to least preferred) is:

• Reduce the amount of waste generated in the first place
• Reuse items when possible instead of discarding them
• Recycle materials into new products
• Recover value (for example, energy recovery by incineration with energy capture, or composting organic waste to return nutrients to soil)
• Disposal as the last resort (landfilling or incineration without energy recovery).

The hierarchy guides both policy and corporate practices to minimise waste and promote a circular economy.

Zero Carbon

Colloquially, this means no net release of carbon emissions at all. In the strictest sense, a zero carbon product or service is one that produces no CO₂ emissions from the outset, rather than emitting and then offsetting. For example, a wind turbine generating electricity can be considered zero-carbon in operation (there’s no CO₂ when the wind turbine produces power). Some certifications use “zero carbon” to indicate that a building or organisation operates without any fossil fuel use on-site (all energy from renewables, etc.). The term is often used interchangeably with net zero carbon, but technically zero carbon implies absolute zero emissions, which is challenging – so most targets are net zero which allows for some offsetting.

Zero Waste

A goal or philosophy of eliminating waste so that no materials are sent to landfill or incineration – instead, all products and materials are reused, recycled, or composted in a circular way. In a zero waste system, what used to be “waste” becomes inputs for other processes (one entity’s waste is another’s raw material). For a company, pursuing zero waste might involve redesigning products for recyclability, setting up take-back programmes, and ensuring that any remaining trash is very minimal. Achieving truly zero waste is difficult, but many organisations set targets like “90% diversion from landfill” as milestones toward zero waste. The broader benefit is reduced pollution and resource conservation.

This glossary should give you a solid grounding in the terms and concepts you’ll come across in business sustainability. It’s a fast-moving field, with new rules, standards, and ideas emerging every year.

If you’d like tailored guidance for your organisation – whether that’s producing a Carbon Reduction Plan, improving ESG reporting, or building a long-term net zero strategy – we can help.