1.5°C aligned target
A science-based target (SBT) derived from a 1.5°C aligned scenario via an approved target-setting method. A 1.5°C aligned scenario is one in which global average temperature is limited to 1.5°C above pre-industrial levels with no or limited overshoot.
Source: SBTi
Abatement
Measures that companies take to prevent, reduce, or eliminate sources of GHG emissions within their value chain.
Source: SBTi
Absolute emissions
Expression of a quantity of greenhouse gas (GHG) emissions in terms of mass of GHG or tonnes of carbon dioxide equivalent (CO2e). In contrast with emissions intensity, which are emissions per a specified unit.
Source: SBTi
Action
Mitigation measures or interventions intended to avoid or reduce CO2e emissions or other negative environmental impact.
Source: Secaro
Action plan
A planned and time-bound set of measures to avoid and reduce CO2e emissions and/or other environmental impact.
Source: Secaro
Carbon credit
A carbon credit is a tradable unit that represents one metric tonne of GHG emission reductions or removals. When a carbon credit is purchased and retired for offsetting purposes, it is sometimes referred to as a carbon offset credit. Carbon credits are uniquely serialized, issued, tracked, and retired by means of an electronic registry. Carbon credits in the voluntary carbon market (VCM) are generated by the activities of projects and programs that are certified by carbon standards. Standards require that programs and projects pass an additionality test to demonstrate that the project or program activities face barriers that would prevent them from otherwise going ahead. In other words, activities and credits are additional if they would not have happened in the absence of carbon finance.
Source: SBTi
Carbon dioxide equivalent (CO2e)
Unit comparing the radiative forcing (global warming impact) of a GHG, expressed in terms of the amount of CO2 that would have an equivalent impact. Since GHGs have different global warming potentials, CO2e is a term for describing different GHGs in a common unit. It means the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another GHG.
Source: WBCSD PACT (adapted)
Carbon neutral
Carbon Neutrality means that any carbon dioxide (CO2) emissions into the atmosphere associated with a supplier entity, product or activity are balanced with the same amount of renewable energy credits (RECs) and/or carbon dioxide removals from the atmosphere over a specified period.
Source: Suppliers Partnership for the Environment
Climate change adaptation
The process of adjustment to actual and expected climate change and its impacts.
Source: EFRAG
Climate change mitigation
The process of reducing GHG emissions and holding the increase in global average temperature to 1.5°C above pre-industrial levels, in line with the Paris Agreement.
Source: EFRAG
Climate neutrality
A state in which human activities result in no net effect on the climate system, achieved by balancing residual emissions with removals and accounting for local or regional effects such as surface albedo changes.
Source: IPCC
Climate resilience
The capacity of an organization to adjust to climate changes and uncertainties. It includes the ability to manage climate-related risks and opportunities, and encompasses both strategic and operational resilience.
Source: EFRAG
Climate risk
Covers physical risks from climate change (acute or chronic) and transitional risks arising from the shift to a low-carbon, climate-resilient economy.
Source: EFRAG (adapted)
Cradle-to-gate PCF
Part of a product’s life cycle covering emissions from upstream processes and within-company activities until the product leaves the company’s gate.
Source: WBCSD PACT
Cradle-to-grave PCF
Covers all emissions across a product’s full life cycle—from raw material acquisition through use to end-of-life treatment, recycling, and disposal.
Source: WBCSD PACT
Decarbonization
The implementation of mitigation measures to reduce carbon emissions.
Source: Secaro
Decarbonization levers
Aggregated categories of mitigation actions such as energy efficiency, electrification, fuel switching, renewable energy use, product changes, and supply-chain decarbonization.
Source: EFRAG
Deforestation
Loss of natural forest due to conversion to agriculture or non-forest land use, tree plantations, or severe degradation.
Source: SBTi
Dependency
A situation where an organization relies on natural, human, or social resources for its operations.
Source: EFRAG
Dependency on nature
Environmental assets or ecosystem services on which an organization relies, such as water flow, pollination, or carbon sequestration.
Source: TNFD
Emission factor
Amount of GHGs emitted, expressed as CO2e, relative to a unit of activity (e.g., kg CO2e per kWh).
Source: WBCSD PACT
Environmental attribute certificate
A document certifying and communicating environmental or climate-related attributes linked to commodities, activities, or projects.
Source: SBTi
Forest, land and agriculture (FLAG)
The SBTi project and sector grouping for Forest, Land, and Agriculture. “FLAG-related emissions” are equivalent to AFOLU emissions.
Source: SBTi
Freshwater
Groundwater and surface water with mean annual salinity below 0.5%.
Source: EFRAG
Greenhouse gases (GHG)
Atmospheric gases that absorb and emit infrared radiation, including CO2, CH4, N2O, HFCs, PFCs, and SF6.
Source: WBCSD PACT
Insetting
Climate mitigation projects or programs within a company’s own scope 3 value chain, or partly within its supply chain boundary.
Source: SBTi
Internal carbon price
A price used by a company to assess financial implications of emissions and future abatement costs.
Source: EFRAG
Land-use change
Change in carbon stocks caused by converting one land-use category to another or within a category due to new demand.
Source: GHG Protocol
Location-based Scope 2
Method for quantifying scope 2 emissions based on average grid emission factors for defined geographic areas.
Source: SBTi
Long-term science-based target
GHG reduction targets aligned with net-zero and 1.5°C pathways, to be achieved by 2050 at the latest.
Source: SBTi
Market-based Scope 2
Method for quantifying scope 2 emissions based on emissions from purchased or contracted electricity sources.
Source: SBTi
Mitigation
Human intervention to reduce GHG emissions or enhance carbon sinks.
Source: SBTi
Near-term science-based target
GHG reduction targets aligned with 1.5°C pathways, achieved within 5–10 years of submission.
Source: SBTi
Net zero emissions
When emissions equal removals within a target boundary, consistent with 1.5°C pathways.
Source: GHG Protocol
Net-zero science-based target
A target requiring reduction of scopes 1–3 to residual levels consistent with 1.5°C and neutralization of remaining emissions.
Source: SBTi
Neutralization
Measures to counterbalance unavoidable GHG emissions through permanent CO2 removal and storage.
Source: SBTi
Physical Risks
Location-specific risks arising from compromised natural systems due to climatic, geological, or ecological changes affecting ecosystem services.
Source: EFRAG
Primary data
Data specific to a product or activity in a company’s value chain, such as meter readings, purchase records, or monitoring data.
Source: WBCSD PACT
Product Carbon Footprint (PCF)
Total GHG emissions generated across a product’s life cycle, expressed in CO2e.
Source: WBCSD PACT
Renewable Energy
Energy from non-fossil renewable sources such as wind, solar, geothermal, hydro, biomass, and biogas.
Source: EFRAG
Risk
A sustainability-related risk with negative financial effects stemming from environmental, social, or governance issues.
Source: EFRAG
Saved emissions
Emissions avoided through actions that reduce emissions.
Source: Secaro
Science-based Target
Targets consistent with limiting global warming to 1.5°C in line with the Paris Agreement.
Source: SBTi
Scope 1
Direct GHG emissions from operations owned or controlled by the company.
Source: SBTi
Scope 2
Indirect GHG emissions from purchased or acquired energy consumed by the company.
Source: SBTi
Scope 3
Other indirect emissions in the value chain, both upstream and downstream.
Source: SBTi
Secondary Data
Data from external databases or studies rather than company-specific sources, e.g., life cycle inventories or government emission factors.
Source: WBCSD PACT (adapted)
Supply Chain
All upstream activities and processes providing goods or services used in a company’s production.
Source: EFRAG
Sustainability-related impact
The effect an organization has on the environment and people, including both positive and negative outcomes.
Source: EFRAG
Sustainability-related opportunity
Potential events or conditions that could positively affect an organization’s business model or strategy.
Source: EFRAG
Sustainability-related risk
Potential events or conditions that could negatively affect an organization’s business model or strategy.
Source: EFRAG
Sustainable sourcing
Incorporation of social, ethical, and environmental criteria in supplier selection.
Source: EFRAG
TNFD (Taskforce for Nature-Related Financial Disclosure)
A market-led, science-based, government-backed initiative providing tools for nature-related financial disclosure.
Source: TNFD
Transition Risk
Risks from misalignment between an organization’s strategy and a changing regulatory or societal landscape during the low-carbon transition.
Source: EFRAG
Upstream emissions
Indirect GHG emissions occurring prior to the company’s owned or controlled processes.
Source: WBCSD PACT
Waste
Materials or emissions without economic value that are discarded or required to be discarded.
Source: WBCSD PACT
Waste sent for disposal
The amount of waste disposed of through landfill or incineration (including energy recovery).
Source: Secaro
Water consumption
Water withdrawn but not returned to the environment during the reporting period.
Source: GRI
Water discharge
Water leaving an organization’s boundaries via surface, groundwater, or third parties.
Source: GRI
Water stewardship
Use of water that is socially equitable, environmentally sustainable, and economically beneficial, achieved through inclusive, catchment-based action.
Source: Alliance for Water Stewardship
Water stress
Inability to meet human and ecological demand for water due to limited availability, quality, or access.
Source: CDP
Water withdrawal
All water drawn into a site’s boundaries from any source (e.g., municipal supply, surface or groundwater, rainwater, or deliveries).
Source: Secaro
Water-related risk
Potential for experiencing water-related challenges such as scarcity, flooding, or poor quality, based on likelihood and impact severity.
Source: CEO Water Mandate
WBCSD PACT
Partnership for Carbon Transparency—a WBCSD-led initiative enabling business collaboration on GHG transparency.
Source: WBCSD PACT
