Climate terms explained.

The 1.5-degree goal, established in the 2015 Paris Agreement, aims to limit global warming to 1.5°C above pre-industrial levels to prevent the most severe impacts of climate change. Achieving this requires rapid and deep reductions in greenhouse gas emissions, as well as reaching net-zero emissions by mid-century.

Quantitative data from activities that result in greenhouse gas emissions. This includes fuel consumption, electricity usage, kilometers driven, raw materials processed, or units of product purchased or used. Activity data is a crucial component in calculating organizational or product carbon footprints, as it's combined with emission factors to determine total emissions. Regular monitoring and verification of activity data is essential for accurate carbon accounting and emissions reporting.

A key concept in climate projects that refers to the fact that a project would not have been implemented without the additional financing that comes from the sale of carbon credits. This means that a project that is additional must lead to real and measurable emission reductions that would not have happened otherwise.

Afforestation and Reforestation are two distinct forest-based solutions to address climate change. Afforestation refers to planting new forests on land that hasn’t been forested for at least 50 years.vReforestation involves restoring forests on land that was recently forested but has since been converted to other uses. Both processes help sequester carbon dioxide from the atmosphere, support biodiversity, and provide essential ecosystem services, though they differ in their ecological impacts and carbon sequestration potential.

Anthropogenic emissions, in a climate change context, are greenhouse gas emissions caused directly by human activities and industrial processes. These include burning fossil fuels for energy, industrial production, agriculture, and deforestation. Unlike natural emissions from volcanoes or wetlands, anthropogenic emissions have increased dramatically since the Industrial Revolution and are the primary driver of modern climate change.

The atmosphere is Earth's gaseous envelope, primarily composed of nitrogen and oxygen, along with small amounts of greenhouse gases such as carbon dioxide. It protects against harmful radiation, regulates temperature, and makes life on Earth possible.

A B Corp certification shows that a company takes responsibility for its impact on people, society, and the environment – not just profit. The certification is issued by the independent nonprofit organization B Lab and is based on clear, verified standards.

The rich variety of life on Earth, encompassing the diversity of species, and ecosystems. It includes the millions of plants, animals, and microorganisms, their genetic information, and the ecosystems they form. Healthy biodiversity is essential for ecosystem services like clean air, water, food security, and climate regulation. Climate change poses a significant threat to global biodiversity through habitat loss and ecosystem disruption.

Fuel produced from organic materials, either directly from plants or indirectly from agricultural, commercial, domestic, or industrial waste.

Blue carbon is carbon captured and stored by ocean and coastal ecosystems, like mangroves, tidal flats, and seagrass meadows. These ecosystems are very efficient at storing carbon, up to 40 times faster than tropical rainforests. Protecting these ecosystems is crucial for mitigating climate change and is increasingly used in climate financing and coastal conservation projects.

The process of measuring and tracking greenhouse gas emissions.

A technology that captures carbon dioxide emissions from industrial processes, power generation, and other sources before they enter the atmosphere. The captured CO2 is compressed, transported, and stored permanently underground in geological formations like depleted oil fields or saline aquifers. CCS is considered a key technology for reducing industrial emissions and achieving net-zero targets, though challenges include high costs and verification.

A greenhouse gas produced by natural processes and human activities, particularly fossil fuel combustion. Carbon dioxide is the primary driver of global warming, as its increased concentration in the atmosphere enhances the greenhouse effect, trapping more heat and disrupting Earth's climate systems.

A metric used to compare emissions from various greenhouse gases based on their global warming potential, converted to the equivalent amount of CO2.

The total amount of carbon dioxide produced directly and indirectly by an individual, organization, event, or product.

Carbon intensity is the amount of carbon dioxide emitted per unit of something else, like GDP, energy, or products made. It helps compare the carbon efficiency of countries, companies, products, or processes. Lower carbon intensity means more efficient or cleaner production. Many climate strategies focus on reducing carbon intensity through technological innovation and process improvements.

Carbon leakage occurs when strict climate policies in one region lead to higher emissions elsewhere. This happens when companies move production to countries with weaker environmental regulations, potentially undermining global emission reduction efforts. Carbon leakage is a key issue in designing climate policies, with solutions including border carbon adjustments and international cooperation on emission standards.

Carbon neutrality has been a contested term given that some associate it with a lack of climate action. Under different certification standards, it indicates the financing of carbon removals or climate projects at levels that equal the climate emissions the entity produces.Some standards require entities to reduce their emissions by a specific percentage before being able to use the term – even if financing climate projects has already happened. However, as many were using it without reducing emissions, or a proper entity that certified the reductions, the term underwent heavy criticism.

Going beyond carbon neutral to create an environmental benefit by removing additional CO2 from the atmosphere. Calling oneself "climate positive" is complex because it means not only neutralizing emissions but also compensating for more than what is emitted, which requires extensive measures and proof of long-term, effective carbon sequestration. There are also no clear or unified standards, making it difficult to ensure the claim is credible and not misused.

Activities aimed at lowering greenhouse gas emissions.

Carbon renewal refers to an advanced recycling process where waste materials, such as plastics and other carbon-based products, are broken down into their basic molecular components. These components are then reused as raw materials for manufacturing new products, reducing reliance on virgin fossil-based resources. This process supports a circular economy by giving waste materials a new life and minimizing their environmental impact.

Natural or artificial reservoirs that absorb and store atmospheric carbon dioxide. Major natural carbon sinks include forests, oceans, and soil, which collectively absorb about half of human-caused CO2 emissions. The preservation and enhancement of carbon sinks through forest conservation, regenerative agriculture, and ocean protection are crucial strategies in combating climate change. The capacity of these sinks can be affected by climate change itself, creating potential feedback loops.

A carbon tax is a fee imposed on carbon dioxid emissions, aimed at reducing emissions. By assigning a cost to emitting carbon dioxide, the tax incentivizes businesses and individuals to adopt cleaner energy sources, improve energy efficiency, and reduce their overall carbon footprint. The revenue generated from carbon taxes is in some countries used to fund renewable energy projects, climate adaptation measures, or redistributed to taxpayers.

A circular economy is an economic system that eliminates waste and maximizes resource efficiency. It is based on three principles: designing out waste and pollution, keeping materials and products in use, and regenerating natural systems. This model replaces the traditional 'take, make,waste' approach with a circular process where resources are reused, repaired, remanufactured, and recycled, reducing both resource consumption and greenhouse gas emissions.

Climate adaptation is the process of adjusting to actual or expected climate change and its effects. In human systems, adaptation aims to reduce harm or take advantage of potential opportunities brought by climate change. In natural systems, human intervention may facilitate adaptation to expected changes. Examples of adaptation actions include building flood defenses, establishing early warning systems for extreme weather, and developing drought-resistant crops.

Climate change is an urgent and global challenge that threatens the future of our society and demands immediate action. The consequences of climate change are multifaceted and severe. Extreme weather events such as droughts, floods, and stronger hurricanes are becoming increasingly common, causing damage to infrastructure, loss of lives, and significant impacts on agriculture and water supply. This change is primarily driven by human activity, particularly the emission of greenhouse gases such as carbon dioxide (CO2) and methane (CH4). These gases contribute to the greenhouse effect by trapping heat on Earth, leading to a rise in global temperatures.

Climate financing refers to financial resources mobilized to combat climate change, both by reducing greenhouse gas emissions (mitigation) and helping communities and ecosystems adapt to its impacts (adaptation). This can include investments in renewable energy, energy efficiency, and sustainable agriculture, as well as support for building resilience to extreme weather events and rising sea levels. Climate financing comes from both public and private sources and can be channeled through international agreements or national programs. Effective climate financing is crucial to achieving global climate goals and ensuring a just transition for all communities.

The total amount of greenhouse gases produced directly and indirectly by an individual, organization, event, or product.

Climate Frameworks are standards that aim to give guidance to organizations and entities on how to take climate action. They can touch on topics like, measuring and reporting a company's climate impact, helping businesses set climate targets, and to generally track their environmental impact.

Climate justice is about recognizing that climate change disproportionately affects vulnerable populations, particularly in low- and middle-income countries and marginalized communities in higher-income countries. It addresses the ethical and political issues surrounding climate change, including the fair distribution of environmental benefits and burdens, equal participation in climate decision-making, and recognition of historical responsibilities for emissions. Climate justice emphasizes that solutions to the climate crisis must not only be environmentally effective but also socially just and fair, ensuring that all communities have the opportunity to contribute to and benefit from the transition to a sustainable future.

Achieving net-zero greenhouse gas emissions by balancing emissions with carbon removal or climate financing. Calling oneself "climate neutral" is complex because it requires carefully calculated emissions accounting, where all direct and indirect emissions must be offset through measures like carbon reduction or sequestration. There is also no unified definition or verification, making it difficult to ensure credibility and avoid misuse of the term.

Initiatives designed to reduce greenhouse gas emissions or enhance resilience to climate change impacts.

Climate reporting is the process where companies measure, analyze, and disclose their greenhouse gas emissions to understand and reduce their climate impact. It typically includes direct emissions, indirect emissions from energy use, and other emissions across the supply chain. Through climate reporting, companies can identify areas for improvement, increase transparency, and strengthen their accountability to customers, investors, and other stakeholders. In some cases, companies are legally required to conduct climate reporting, for example CSRD within the EU, starting in 2024.

Climate resilience is the ability of societies, economies, and ecosystems to manage climate risks and maintain key functions. It involves anticipating, preparing for, and adapting to climate change through actions in, for example, infrastructure, agriculture, and urban planning to reduce vulnerability.

COP stands for Conference of the Parties. It is a meeting where countries come together under the United Nations to talk about a specific topic. For climate change, COP is where countries discuss climate issues and make important decisions, like the Paris Agreement, which was made at COP21.

Corporate Social Responsibility - a self-regulating business model helping companies be environmentally and socially accountable.

Corporate Sustainability Reporting Directive - EU legislation requiring companies to report on their environmental and social impacts.

Decarbonization is the process of reducing or removing carbon dioxide emissions from human activities. It involves replacing fossil fuels with renewable energy, improving energy efficiency, and using clean technologies in power generation, transport, industry, and buildings. Decarbonization is key to reaching net-zero emissions and slowing global warming.

Direct emissions are greenhouse gas emissions from sources owned or directly controlled by the company. This includes emissions from company-owned vehicles, on-site fuel use or manufacturing processes. These emissions are the easiest to measure and manage, making them a key part of companies’ efforts to reduce emissions and comply with regulations.

A double materiality assessment means looking at sustainability issues in two ways: how they affect the company’s finances, and how the company affects people and the environment. It is most commonly used within the Corporate Sustainability Reporting Directive, but it can be used at any moment by any company. The DMA results help companies understand how their business may be impacted by a changing environment or disturbances in society and their workforce.

Greenhouse gas emissions that occur in the value chain after an organization's products or services leave its ownership or control are known as downstream emissions. These emissions arise from activities such as the use, processing, and end-of-life treatment of sold products. As part of Scope 3 emissions, downstream emissions can constitute a significant share of a company's total carbon footprint, especially for manufacturers of energy-intensive products or suppliers of fossil fuels.

EFRAG (European Financial Reporting Advisory Group) is an organization that advises the European Commission on accounting standards and has developed the European Sustainability Reporting Standards (ESRS) as well as the Voluntary standard for small and medium-sized companies (VSME).

An emission factor is a number used to calculate greenhouse gas emissions from specific activities. It shows how much greenhouse gas is released for each unit of activity, like using fuel, electricity, or producing goods. These factors are based on research and can differ depending on the region, technology, or energy source. Updated regularly by experts, emission factors are essential for measuring emissions accurately and helping organizations report and reduce their climate impact.

Emission rights are permits that allow entities, such as companies, governments, or organizations, to release a specific amount of greenhouse gases. These permits can be bought and sold, creating a system where participants can either lower their own emissions or buy rights from others who can reduce emissions more cheaply. Over time, the total number of permits usually decreases to ensure overall emissions are reduced.

Greenhouse gas emissions are the gases released into the atmosphere from various sources over a specific period. These emissions can be direct, meaning they come from sources owned or controlled by the reporting entity, or indirect, which are the result of the entity's activities but come from sources owned or controlled by someone else. Measuring and understanding emissions is crucial for addressing climate change and forms the basis for actions like carbon pricing, regulations, and corporate sustainability efforts.

Energy efficiency is about using less energy to achieve the same result. This includes technological improvements, better insulation, smart energy management, and behavioral changes. Energy efficiency reduces both costs and greenhouse gas emissions, making it key to fighting climate change. Common examples are LED lighting and energy-efficient appliances.

A third-party verified environmental declaration based on an LCA (2). It follows ISO 14025 and EN 15804, providing comparable environmental data often used in procurement, construction, and product comparisons.

ESG stands for Environmental, Social, and Governance, and it’s an abbreviation and a framework used to evaluate how companies perform beyond traditional financial goals. The environmental aspect focuses on climate impact, resource use, and pollution. The social aspect looks at working conditions, community relationships, and human rights. Governance covers leadership, shareholder rights, and business ethics. ESG has become increasingly important for investments and business strategies as stakeholders demand greater accountability and sustainability.

The European Sustainability Reporting Standards (ESRS) are the detailed reporting requirements that companies must follow under the CSRD to disclose their impact on the environment and society. Developed by EFRAG under the demand of the EU Commission, ESRS aims to create a uniform and transparent sustainability reporting framework within the EU. The Omnibus proposal limits the CSRD to the largest companies (over 1,000 employees), reducing the number of businesses required to comply with ESRS. For smaller companies, the voluntary VSME standard is introduced, offering simplified reporting requirements.

EU ETS is the world’s largest carbon market, operating since 2005. The cap-and-trade system sets a limit on emissions in power, industry, and aviation, allowing companies to trade emission allowances. It creates a carbon price, encouraging emission reductions and clean technology investments. EU ETS covers about 40% of EU emissions.

The GHG Protocol is an internationally recognized protocol developed by the World Resources Institute and World Business Council for Sustainable Development. It provides standardized frameworks and tools for measuring, reporting, and managing greenhouse gas emissions. Organizations use it to report emissions across three scopes: direct emissions from owned sources (Scope 1), indirect emissions from purchased energy (Scope 2), and all other indirect emissions in the value chain (Scope 3).

The Global Goals, or Agenda 2030, are the UN’s plan to create a sustainable future for all – both people and planet. They consist of 17 goals and 169 targets aimed at ending poverty, reducing inequalities, and protecting the environment. Achieving them requires collaboration between countries, businesses, and individuals by 2030.

The long-term increase in Earth's average temperature, observed since the pre-industrial period, primarily driven by human activities such as burning fossil fuels, which release greenhouse gases into the atmosphere.

Electricity produced from sustainable sources such as renewable energy (e.g., wind, solar) and fossil-free sources (e.g., nuclear power and hydro). Renewable energy is both sustainable and environmentally friendly, while fossil-free electricity, like nuclear, has a lower climate impact than fossil fuels but may have other environmental drawbacks. Globally, 61% of electricity in 2022 came from fossil fuels.

The greenhouse effect is a natural process where greenhouse gases in the atmosphere trap heat from the sun, keeping Earth warm. Without it, the planet would be too cold for life, but human emissions have intensified the effect, causing global warming.

Gases that trap heat in Earth's atmosphere, keeping the planet warm. Key examples include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). While some occur naturally, human activities since the Industrial Revolution have greatly increased their levels, contributing to global warming.

Greenwashing is when a false or misleading image of products, services, operations, actions or claims are presented as being more environmentally friendly than they actually are. This can involve using vague claims, hiding negative impacts, or lacking factual support. It can damage trust in an organization and lead to criticism from the public, consumers, investors, and regulators.

GRI (Global Reporting Initiative) is an international organization providing the most widely used sustainability reporting standards. GRI Standards help companies report on their impacts on climate, human rights, and social well-being, promoting transparency and accountability.

The IPCC is a UN body that reviews and summarizes scientific knowledge about climate change. Founded in 1988, it provides reports that guide global climate policies, covering the causes, impacts, and solutions to climate change. Its findings reflect the global scientific consensus.

The ISO Net Zero Guidelines is a tool that seeks to provide a common reference on what it means to achieve net-zero greenhouse gas emissions. They include strategies for measuring, reducing, and managing emissions, as well as addressing residual emissions through carbon offsetting, aiming to support a credible and transparent transition to net zero.

Kyoto Protocol is a 1997 international treaty where industrialized countries promised to reduce their greenhouse gas emissions. It introduced measures like emissions trading and clean development, and played an important role in fostering international climate cooperation.

A method used to evaluate the environmental impacts of a product or service throughout its entire life cycle. This includes every stage, from extracting raw materials, manufacturing, and transportation to use, recycling, and disposal. LCA helps identify where the biggest environmental impacts occur, guiding businesses and organizations to make more sustainable choices and reduce their overall footprint.

Methane (CH4) is a powerful greenhouse gas with a warming potential about 80 times greater than CO2 during 20 years after being released. Major sources are agriculture (mostly related to cattle), landfill waste, and fossil fuels. Even though methane breaks down faster in the atmosphere than carbon dioxide, it is important to reduce its emissions due to the large quantities of heat that it traps. Also, because when breaking down it does not disappear, it transforms into carbon dioxide resulting in more CO2 in the atmosphere which will continue to trap heat for years to come.

Actions to reduce green house emissions and prevent new ones from going into the atmosphere like enhancing carbon sinks.

Natural capital is the world's stock of natural resources, including geology, soil, air, water, and all living organisms.

NDCs (Nationally Determined Contributions) are countries' commitments to reduce their greenhouse emissions emissions, outlining how they will reduce emissions and adapt to climate change. The plans are updated every five years, aiming to be more robust each time and to reflect each country's highest possible ambition. NDCs are critical to achieving the Paris Agreement’s goal of keeping warmth below 1,5°

Net Zero means not adding any extra greenhouse gases to the atmosphere. This is done by first cutting your own emissions as much as possible (90% according to SBTi), and then balancing out the amount that remains through removal projects.

Nitrous oxide (N2O), known as laughing gas, is a powerful greenhouse gas produced by agricultural and industrial activities. It has 300 times the potential of carbon dioxide to warm the atmosphere while also staying in the atmosphere for multiple years. In addition, when in the stratosphere and exposure to the sun, it reacts to generate other gases that damage the ozone layer.

Climate financing was previously referred to as offsetting, and refers to financial resources mobilized to combat climate change, both by reducing greenhouse gas emissions (mitigation) and helping communities and ecosystems adapt to its impacts (adaptation). This can include investments in renewable energy, energy efficiency, and sustainable agriculture, as well as support for building resilience to extreme weather events and rising sea levels. Climate financing comes from both public and private sources and can be channeled through international agreements or national programs. Effective climate financing is crucial to achieving global climate goals and ensuring a just transition for all communities. The reason for the updated terminology and stepping away from the term offsetting is to avoid the misconception that one can simply buy their way out of their emissions. The emissions that have already been made remain, but through climate financing, we can actively contribute to a sustainable future by supporting climate projects that make a difference.

The Omnibus proposal can simplify sustainability reporting for SMEs. hile reducing the scope of sustainability reporting for small and medium-sized enterprises (SMEs), thresholds will be raised for companies that need to report by the more extensive ESRS-standard. With more focus on the voluntary VSME standard, the administrative burden is reduced for SMEs. The proposal is expected to be adopted in late 2025 or early 2026 after EU approval. SMEs working with large reporting-obligated companies will still need to provide sustainability data, but with simplified requirements under VSME.

An international treaty on climate change adopted in 2015, aiming to limit global temperature rise to well below 2°C above pre-industrial levels, while pursuing efforts to limit the increase to 1.5°C. The agreement includes 196 countries.

An assessment focusing only on climate impact (CO₂e) (2). Large companies often request PCF data from suppliers to meet CSRD/ESRS requirements for activity-based emissions.

Planetary boundaries are environmental limits that define the safe operating space for humanity without causing severe harm to Earth's ecosystems. Crossing these boundaries risks destabilizing the planet and endangering human life.

REDD+ is a UN framework which provids result-based financial incentives for developing countries to reduce emissions from deforestation and forest degradation, while promoting conservation and sustainable forest management. It can be challenging to ensure that the financial incentives actually lead to long-term sustainable forestry and biodiversity protection. It stands for ‘Reducing emissions from deforestation and forest degradation in developing countries’ and additional forest activities that protect the climate.

Energy from sources that are naturally replenishing, such as wind, solar, and geothermal power.

Science Based Targets initiative - is an organization that enables companies to set emissions reduction targets aligned with climate science. It is one of the most globally used guidelines that companies follow to set their climate targets.

A science-based target is an emissions reduction goal that aligns with the latest climate science and ensures a company is contributing its fair share to limiting global warming to 1.5°C, as outlined in the Paris Agreement. These targets are designed to provide a clear, measurable pathway for businesses to reduce greenhouse gas emissions in line with global climate goals.

Scopes are a way of differentiating where emissions come from and the influence that an organization or entity might have over them – largely determined by the GHG Protocol. Scope 1: Direct emissions from fuel used in vehicles and equipment owned or leased by the company., Scope 2: Indirect emissions related to bought energy (electricity, heating, cooling), Scope 3: Other indirect emissions upstream and downstream in the value chain).

Spend-based data is a method for estimating greenhouse gas emissions by analyzing financial expenditure and associating emissions to the cost. It is particularly useful when direct activity data, such as fuel consumption or material quantities, is unavailable or difficult to gather. Although less precise than activity-based calculations, spend-based methods offer a practical way to estimate Scope 3 emissions, especially for purchased goods and services. The accuracy of this approach depends on the quality of the financial data and the accuracy of the emission factors used.

Supply chain emissions refer to the greenhouse gas emissions generated during the production, transportation, and distribution of goods and services within an organization's supply chain. These emissions are a significant component of Scope 3 emissions and include activities such as raw material extraction, manufacturing, packaging, transportation and energy use carried out by suppliers.

Sustainability policy is an organization’s commitment and approach to achieving environmental, social, and economic sustainability.

Sustainability reporting is the disclosure of an organization's environmental, social, and governance performance.

UN's 17 interconnected global goals designed to achieve a better and more sustainable future for all.

The EU Taxonomy is the EU’s system for defining which business activities qualify as environmentally sustainable. Large companies covered by CSRD – as well as banks and investors – must report how much of their revenue and investments are linked to such activities. The goal is to show whether capital is actually being directed toward activities that contribute to climate and environmental goals without causing harm elsewhere, rather than sustainability being only communicated in theory.

Tipping points (climate tipping points) are critical thresholds in Earth's systems that, when crossed, lead to significant and often irreversible climate changes. Examples include melting ice sheets, deforestation, and disruptions in ocean currents. These can trigger self-reinforcing cycles and cascading effects throughout the climate system. Understanding and avoiding tipping points is crucial to preventing catastrophic climate impacts.

UNEP is the leading global environmental organization that sets the worldwide environmental agenda and helps coordinate the environmental part of sustainable development across the United Nations. It acts as a strong advocate for the planet and focuses on tackling the most urgent environmental issues right now, including the climate crisis, loss of nature, land and biodiversity, and problems with pollution and waste.

United Nations Framework Convention on Climate Change is an international environmental treaty addressing climate change, adopted in 1992. The countries which have joined this framework are the ones that meet during Climate COPs.

Indirect greenhouse gas emissions that occur in the value chain before products or services come under the reporting organization's ownership or control are known as upstream emissions. These include emissions from the production of purchased goods and services, the extraction of raw materials, the transportation of supplies, and employee business travel. Upstream emissions are part of Scope 3 emissions and often account for a significant share of an organization's total carbon footprint. Addressing these emissions requires collaboration with suppliers and a strategic approach to procurement practices.

The total greenhouse gas emissions from an organization's entire value chain, including upstream and downstream activities such as raw material sourcing, supplier operations, manufacturing, distribution, product use, and end-of-life treatment. Managing these emissions is essential for effective climate action, as they often make up the largest share of an organization's carbon footprint. Reducing them requires collaboration across the value chain and can foster innovation in product design and business models.

VSME is a simlified version of the regular ESRS produced by EFRAG (the writer of ESRS standards under CSRD). They are a voluntary standard that SMEs are recommended to follow to report on their sustainability impacts, opportunities and risks. The specifications of what to report on are shorter and more streamlined to the capacities of what a small company can gather based on its resources. As of June 2025, the existing VSME standard is created for companies with less than 250 employees. Under the changes proposed by the Omnibus proposal, the standard is expected to change and become more robust to adjust to what bigger Medium and Small companies can achieve.

A sustainable approach that aims to conserve resources by ensuring products, packaging, and materials are responsibly produced, consumed, reused, and recovered. The goal is to minimize waste sent to landfills or incinerators by designing systems that prioritize efficiency, durability, and circularity, keeping materials in use for as long as possible.