Glossary

The language of carbon, in plain English.

30+ terms, one paragraph each, written by carbon experts. Aligned with the GHG Protocol.

C

12 terms
Carbon Disclosure Project (CDP)
An international organization that encourages companies to disclose their carbon emissions and climate change strategies, and provides a platform for benchmarking and reporting.
Carbon Footprint
The total amount of carbon emissions a company produces, including direct and indirect emissions.
Carbon Intensity
The amount of carbon emissions per unit of economic activity, e.g. per dollar of GDP or per unit of product produced.
Carbon Leakage
When carbon reduction policies in one region lead to higher emissions in another, because companies relocate to avoid regulation.
Carbon Market
A market-based mechanism for trading carbon credits or offsets, often used to meet reduction targets or finance reduction projects.
Carbon Offset
Compensating for emissions produced by an activity by supporting carbon-reduction projects elsewhere. We prefer the term "carbon contribution".
Carbon Pricing
A policy tool that puts a price on emissions — through a tax or cap-and-trade — to incentivise reductions.
Circular Economy
An economic model that minimises waste and maximises the use of resources by designing products for reuse, repair and recycling.
Climate Change
Long-term shifts in weather patterns caused by human activities such as burning fossil fuels and deforestation, leading to global warming.
Climate Finance
Financial investments or mechanisms designed to support climate mitigation or adaptation, such as climate bonds or green loans.
Climate Risk Assessment
A process of evaluating the physical and financial risks climate change poses to a company's operations, assets and supply chain.
CSRD
The Corporate Sustainability Reporting Directive — an EU directive expanding non-financial reporting requirements with a double materiality lens.

E

3 terms
Emission Factors
Standardized coefficients that quantify GHG emissions from a particular activity or source, expressed as emissions per unit of activity or energy consumed.
Energy Efficiency
Reducing the amount of energy needed to perform a task or achieve a goal, through more efficient technologies and practices.
ESG Criteria
Environmental, Social and Governance — non-financial factors used to evaluate the sustainability and ethical impact of investments or companies.

G

2 terms
GHG Protocol
A widely-used international standard for GHG accounting and reporting, developed by WRI and WBCSD. The basis of most carbon reports.
Greenhouse Gases (GHG)
Gases that trap heat in the atmosphere — CO₂, methane, nitrous oxide, and fluorinated gases. They drive climate change.

I

1 terms
IPCC
The Intergovernmental Panel on Climate Change. Its assessment reports synthesise the scientific consensus on climate.

K

1 terms
Kyoto Protocol
An international treaty adopted in 1997 setting legally binding GHG reduction targets for developed countries.

L

2 terms
Life Cycle Assessment (LCA)
A method to evaluate the environmental impacts of a product or service across its full life cycle, from raw materials to end-of-life.
Low Carbon Technology
Technologies that emit less carbon than conventional ones — renewables, EVs, energy-efficient appliances.

N

2 terms
Net Zero
A balance between GHG emissions produced and removed from the atmosphere — first reduce as much as possible, then offset the residual.
NFRD
The Non-Financial Reporting Directive, predecessor to CSRD, requiring large EU companies (>500 employees) to disclose ESG information.

P

1 terms
Paris Agreement
A 2015 international treaty under the UNFCCC, targeting global warming well below 2 °C and ideally 1.5 °C above pre-industrial levels.

R

1 terms
Renewable Energy
Energy derived from renewable resources — wind, solar, hydro, geothermal — with little to no direct CO₂ emissions.

S

4 terms
Science-Based Targets (SBT)
Reduction targets aligned with the latest climate science. Companies set and validate them through the SBTi.
Scope 1
Direct GHG emissions from sources owned or controlled by the organisation — boilers, owned vehicles, on-site combustion.
Scope 2
Indirect emissions from the consumption of purchased electricity, heat or steam.
Scope 3
Indirect emissions in the value chain — suppliers, transport, product use, end-of-life. Often the largest scope to manage.

T

1 terms
Tapio
In Finnish mythology, Tapio is the god of the forest. That is why we picked this name.

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