The field of sustainability is rapidly evolving, much of it driven by new concepts, standards and regulations. Amidst this complexity, acronyms and terminology abound, making it challenging to navigate. In this post, I aim to provide a concise yet comprehensive glossary of key sustainability terms. I’ll attempt to update it regularly to ensure it stays relevant as the landscape evolves. This resource serves as a quick reference so that it doesn’t get out of hand. I’ll include links to further reading if you want deeper insights into specific topics.
Let’s get started!
Carbon equivalents (CO2e)
A metric used to compare the emissions of various greenhouse gases based on their global-warming potential (GWP). CO2e simplifies comparing and aggregating the warming impacts of different gases in a single figure. It involves converting the amounts of gases like methane and nitrous oxide into the equivalent amount of CO2 that would have the same global warming impact. Commonly expressed as million metric tonnes of CO2 equivalent (MMTCO2e), one CO2e represents the amount of heat that an equivalent amount of CO2 would trap over a century. For example, the GWP of methane is 25, and for nitrous oxide, it is 298. This means that emissions of 1 million metric tonnes of methane or nitrous oxide would have the same impact as 25 and 298 million metric tonnes of CO2, respectively.
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Carbon neutrality
The goal of achieving net zero greenhouse gas emissions. This is accomplished by ensuring that the amount of emissions released into the atmosphere is balanced by or is less than what is removed through natural absorption processes or through deliberate carbon capture initiatives. This balance helps mitigate climate change by maintaining a stable level of atmospheric carbon.
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Carbon offsets
Carbon offsetting is a method used by individuals or organizations to help achieve carbon neutrality. It involves purchasing tradable certificates or “rights” that are associated with activities that reduce CO2 emissions in the atmosphere. These activities can include things like reforestation projects, renewable energy developments, or other environmental initiatives that absorb CO2 or reduce CO2 output. By buying these certificates, a person or organization can compensate for their own CO2 emissions by ensuring an equivalent amount of CO2 is reduced elsewhere, effectively “offsetting” their emissions. This approach allows entities to contribute to the fight against climate change even if they cannot reduce their emissions directly.
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MIT Climate Portal
Circular economy
A system in which materials continuously cycle and natural systems are rejuvenated. It is a model of resource production and consumption that encompasses sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products to extend their life cycle. This approach minimizes the use of raw materials, reconfigures materials and products to consume fewer resources, and transforms “waste” into a valuable resource for creating new materials and products.
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Corporate Sustainability Due Diligence Directive (CSDDD)
A regulatory framework adopted by the European Commission. Its purpose is to foster sustainable and responsible corporate behavior, requiring large EU limited liability companies (with 500+ employees and net EUR 150 million+ turnover worldwide) to identify, prevent and account for negative human rights and environmental impacts in their operations and value chains. Directors must integrate due diligence processes into corporate strategy, considering human rights and climate change. The CSDDD aims to enhance transparency, trust and sustainability across businesses.
While both CSDDD and CSRD encourage responsible business practices and transparency, CSDDD emphasizes due diligence and the CSRD enhances sustainability reporting.
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Corporate Sustainability Reporting Directive (CSRD)
An EU directive designed to enhance the consistency and comparability of sustainability reporting. In effect as of 1 January 2024, the CSRD mandates annual disclosure of critical environmental, social and governance (ESG) information by companies operating within the EU. This directive updates and expands the existing rules on what social and environmental information companies must report. It applies to a wider range of large companies, including other listed companies, which will now be required to provide detailed reports on their sustainability practices.
While both CSRD and CSDDD encourage responsible business practices and transparency, CSRD enhances sustainability reporting and CSDDD emphasizes due diligence.
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Double Materiality Assessment (DMA)
A concept that encourages a company to evaluate materiality from two perspectives: the financial impact on the company and the broader environmental and social impacts on stakeholders. Required by the CSRD, it requires companies to report on both types of materiality and to justify their reporting decisions. By conducting a double materiality assessment, companies can integrate sustainability into their risk management strategies and better understand their sustainability-related risks and opportunities.
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ESG (Environmental, Social and Governance)
A framework that assists stakeholders in evaluating how an organization manages risks and opportunities associated with environmental, social and governance factors. Originating from investment strategies focused on sustainability and socially responsible investing, ESG adopts a broad perspective, recognizing that sustainability encompasses more than just environmental concerns. The aim is to address all non-financial risks and opportunities that impact a company’s operations.
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European Sustainability Reporting Standards (ESRS)
The rules and requirements for companies to report on sustainability-related impacts, opportunities and risks across a broad range of ESG topics, including climate change, biodiversity, circular economy, human rights, diversity and others. Companies subject to the CSRD must report according to the ESRS, which were developed by the European Financial Reporting Advisory Group (EFRAG). Adherence to the ESRS requires double materiality principles.
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Greenhouse gases (GHGs)
These gases, such as carbon dioxide (CO2), methane, nitrous oxide and fluorinated gases (including hydrofluorocarbons and perfluorocarbons), trap heat within Earth’s atmosphere. They absorb infrared radiation and re-emit it in all directions, causing some of the heat escaping Earth to return to the surface. This phenomenon, known as the “greenhouse effect,” is analogous to how glass traps heat in a greenhouse. CO2 is seen as the most significant greenhouse gas in discussions about climate change, often referred to simply as “carbon”.
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Greenhouse gas emissions
The release of certain gases into Earth’s atmosphere, contributing to the greenhouse effect. These gases have the property of absorbing infrared radiation (net heat energy) emitted from Earth’s surface and then reradiating it back toward the surface. As a result, they trap heat, leading to an increase in global temperatures. The most significant greenhouse gases include carbon dioxide, methane and water vapor. Without the natural greenhouse effect, Earth would be too cold to sustain life as we know it. Human activities, particularly fossil fuel combustion, have led to higher concentrations of these gases in the atmosphere, intensifying the greenhouse effect and contributing to climate change.
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Greenhushing
The practice of downplaying or underreporting on sustainability initiatives. This might occur when businesses choose to minimize public discussion about environmental efforts, often to avoid scrutiny or because they feel their actions may not meet the expectations of stakeholders or the public.
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Greenwashing
A deceptive marketing practice where products are portrayed as more environmentally friendly than they truly are. This tactic targets buyers who prioritize environmental responsibility, making products seem appealing by providing misleading or false information about their environmental benefits. Greenwashing can involve exaggerating a product’s sustainability or making unsupported claims about a company’s environmental practices.
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Life cycle assessment (LCA)
A systematic framework and methodology for examining and quantifying the environmental burdens associated with the life cycle of materials and services. This assessment spans from “cradle to grave”, covering the entire journey from raw material extraction, through production and use, to disposal or recycling. It identifies and evaluates the environmental impacts at each stage, providing a comprehensive overview of the item’s ecological footprint.
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Net zero
A sustainability target that extends beyond merely balancing greenhouse gas emissions. It encompasses achieving an energy equilibrium where consumption is equal to production, managing water resources to align demand with availability, and aiming for zero waste by preventing solid waste from reaching landfills. This holistic approach helps stop the increase in global warming from CO2 and other greenhouse gases, fostering a sustainable and environmentally responsible way of living across various sectors.
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Net zero emissions
When the amount of greenhouse gases emitted into the atmosphere is balanced by an equivalent amount removed. This state is achieved when the CO2 produced is offset by the same amount being extracted from the atmosphere, ensuring no net increase in emissions. To reach net zero emissions, it is essential to both reduce emissions and employ strategies to remove or offset the remaining emissions.
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Power-to-X (PtX)
A diverse range of technologies that convert electricity, particularly from renewable sources like solar and wind, into other forms of energy or products. This conversion process is primarily driven by the production of hydrogen through electrolysis, where water is split into hydrogen and oxygen using electricity. Beyond hydrogen, PtX technologies encompass the creation of synthetic fuels, chemicals and other materials for various sectors including transport and industry where direct electrification may be impractical. The “X” in Power-to-X represents the various energy forms (such as gases, liquids or heat) or products into which surplus electric power is converted, playing a critical role in the green transformation of multiple sectors.
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Science-based targets (SBTs)
Targets defined by an organization called the Science Based Targets Initiative (SBTi) to help companies establish a clear pathway for reducing greenhouse gas emissions, aligning their efforts with the latest climate science. These targets aim to limit global warming to well below 2 degrees Celsius above pre-industrial levels, thus preventing the worst impacts of climate change and supporting sustainable business growth. The SBTi encourages companies to set ambitious emissions reduction goals, contributing to a net-zero economy through science-backed methods.
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Scope 1, 2 and 3 emissions
Scopes 1, 2, and 3 are categories defined by the Greenhouse Gas Protocol to classify greenhouse gas emissions, helping organizations measure and manage their carbon footprint.
Scope 1 emissions
Direct emissions from sources owned or controlled by the company. These emissions are produced within the company’s own operations or facilities, for example burning fossil fuels like oil or gas for heating buildings, operating company-owned vehicles, and emissions from on-site industrial processes that release greenhouse gases. Scope 1 emissions are directly attributable to the company itself, making them a crucial focus for organizations looking to manage their direct impact on the climate.
Scope 2 emissions
Indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the organization. These emissions are the responsibility of the company because they stem from its energy choices and through its electricity consumption. Reducing this consumption can decrease demand for fossil fuels and other climate-polluting energy sources used in power generation.
Scope 3 emissions
All other indirect emissions that occur in a company’s value chain, encompassing a wide range of activities beyond its direct operations. These emissions are often more challenging to measure and manage due to their diverse sources. Examples include emissions from employee commuting, such as gasoline burned driving to work, and supply chain emissions, like those produced during the manufacturing of materials a company purchases (e.g., steel for car manufacturing). Scope 3 also covers emissions from the use of a company’s sold products, such as cars that emit greenhouse gases during operation. These emissions can involve various stakeholders and interconnected processes, reflecting the extensive impact of a company’s business activities.
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Sustainable Development Goals (SDGs)
Adopted by the United Nations in 2015, the SDGs represent a global commitment to end poverty, protect the environment, and ensure peace and prosperity for all by 2030. The 17 interconnected goals acknowledge that interventions in one area can influence outcomes in others, emphasizing the need for a balanced approach to social, economic and environmental sustainability. This framework encourages countries to focus efforts on those who are most disadvantaged, aiming to leave no one behind.
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Want to know more?
What other terms do you think should be included here? Drop me a line at david @ cylindr .com
[Last updated: 29 April 2024]
About the author
David Hoskin is a sustainability communications consultant with a background in marketing, brand communications and business strategy. With a passion for storytelling and a focus on sustainable practices, David helps organizations achieve their environmental, social and governance (ESG) goals. His work includes developing sustainability reports and stakeholder engagement programs for employees, customers and investors. Driven by a personal commitment to biodiversity and nature conservation, David aims to integrate sustainability into core business operations, making it a strategic asset within organizational cultures.
