Update: Common Sustainability Acronyms, Abbreviations & Definitions
/2023 Update: Given the rapidly changing ESG landscape, we have updated our index of common sustainability acronyms and definitions to bring you the most current and pertinent information.
AA1000
AccountAbility's AA1000 Series - The AA1000 is a set of internationally recognized frameworks that help assess and improve the credibility of an organization's social, economic, and environmental reporting. This framework is used by global businesses, private enterprises, governments, and other public and private organizations. The series includes ways to develop, analyze, and implement sustainability initiatives and help companies improve their credibility in reporting their progress toward sustainability goals. AA1000 also ensures that stakeholders are part of the engagement process so that internal decision-making can improve performance.
For more information, visit: https://www.accountability.org/standards/
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APA
Ad Hoc Working Group on the Paris Agreement - The Ad Hoc Working Group on the Paris Agreement (APA) was established by the same decision to prepare for the entry into force of the Paris Agreement and for the convening of the first session of the Conference of the Parties (COP) serving as the meeting of the Parties to the Paris Agreement (CMA).
For more information, visit: https://unfccc.int/process/bodies/subsidiary-bodies/apa
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AFi
Accountability Framework initiative - To support the effective implementation of supply chain commitments, the Accountability Framework initiative (AFi) is developing a common set of norms and guidelines for companies and others working to address deforestation, ecosystem conversion, and human rights violations. These norms are being developed by a coalition of respected conservation and human rights NGOs from around the world, in close consultation with the private sector, to establish a harmonized global reference that is applicable across commodities and regions.
For more information, visit: https://accountability-framework.org/
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AFV
Alternative Fuel Vehicle - AFVs refer to a vehicle running on a fuel other than traditional gasoline or diesel, such as electric, ethanol, hybrid, natural gas.
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AI in the Energy Sector
Artificial Intelligence - AI is the simulation of human intelligence that can be used by machines and computer systems. It is currently being used to aid the energy transition within the global energy sector. AI is able to accomplish this by improving energy demand, management, and operational efficiency. AI helps companies predict when renewable energy is available and aid in the maintenance of grids and other energy infrastructure. Its operational excellence allows for cost-saving and waste-reducing advantages.
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ASSHE
The Association for the Advancement of Sustainability in Higher Education - AASHE is the leading association for the advancement of sustainability in higher education, and they serve a full range of higher education faculty, administrators, staff, and students who are change agents and drivers of sustainability innovation.
For more information, visit: www.aashe.org/
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ASHRAE
American Society of Heating, Refrigerating and Air-Conditioning Engineers - ASHRAE, founded in 1894, is a global society advancing human well-being through sustainable technology for the built environment. The Society and its members focus on building systems, energy efficiency, indoor air quality, refrigeration, and sustainability within the industry. Through research, standards writing, publishing, and continuing education, ASHRAE shapes tomorrow’s built environment today. ASHRAE was formed as the American Society of Heating, Refrigerating and Air-Conditioning Engineers by the merger in 1959 of American Society of Heating and Air-Conditioning Engineers (ASHAE) founded in 1894 and The American Society of Refrigerating Engineers (ASRE) founded in 1904. In 2012, as part of a rebranding, ASHRAE began doing business as “ASHRAE” vs. using its full legal name of the American Society of Heating, Refrigerating and Air-Conditioning Engineers. Use of ASHRAE reflects the Society’s worldwide membership and that services will continue evolving globally.
For more information, visit: www.ashrae.org
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BAT
Best Available Technique - BAT refers to the available techniques which are the best for preventing or minimizing emissions and impacts on the environment. BAT includes both the technology used, and the way your installation is designed, built, maintained, operated, and decommissioned.
For more information, visit: www.oecd.org/chemicalsafety/risk-management/best-available-techniques.htm
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B Corp
B Corporation - B Corp Certification is a designation used by for-profit companies which requires companies to meet social sustainability, environmental performance, and accountability standards. This certification allows companies to be transparent to the public. In addition to demonstrating high social and environmental performance, companies must change their corporate governance structure to be accountable to all stakeholders through a legal commitment. However, there is no legal liability for companies that fail to meet the certification process.
For more information, visit: www.bcorporation.net/en-us/certification
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BNEF
Bloomberg New Energy Finance - Bloomberg NEF (BNEF) acquires the world’s most sophisticated data sets to create clear perspectives and in-depth forecasts that frame the financial, economic, and policy implications of industry-transforming trends and technologies.
For more information, visit: https://about.bnef.com/
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Btu
British Thermal Unit - A Btu is defined as the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit under stated conditions of pressure and temperature (equal to 252 calories, 778 foot-pounds, 1,005 joules, and 0.293 watthours). It is the U.S. customary unit of measuring the quality of heat, such as the heat content of fuel.
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CAA
Clean Air Act - The CCA is the federal law designed to control air pollution on a national level in the US, with which all emitting entities must comply. The Act also establishes federal standards for 188 hazardous air pollutants and establishes a cap-and-trade program for the emissions that cause acid rain.
For more information, visit: www.epa.gov/laws-regulations/summary-clean-air-act and www.epa.gov/haps/initial-list-hazardous-air-pollutants-modifications
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CCGT
Combined Cycle Gas Turbine - CCGT is the modern gas-powered electricity-generating technology. It remains the choice for many power plants that rely on natural gas.
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CCS / CCUS
Carbon Capture and Storage / Carbon Capture, Utilization and Storage - As defined by the International Energy Agency, CCS is a family of technologies and techniques that enable the capture of carbon dioxide (CO2) from fuel combustion or industrial processes, the transport of CO2 via ships or pipelines, and its storage underground, in depleted oil and gas fields and deep saline formations. In CCUS, the idea is that instead of storing carbon, it could be re-used in industrial processes by converting it into things such as plastics, concrete, or biofuel. Examples of direct utilization include CO2 use in the food and drink industry and for enhanced oil recovery. If CO2 is stored but not utilized, then the process should be classified as CCS.
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CCX
Chicago Climate Exchange® - The CCX was launched in 2003 as a voluntary, legally binding greenhouse gas (GHG) reduction and trading system for emission sources and offset projects in North America and Brazil. The CCX used independent verification, included six greenhouse gases, and traded greenhouse gas emission allowances. The companies joining the exchange committed to reducing their aggregate emissions to achieve an overall target of 6% below 1998-2001 levels by 2010. CCX had an aggregate baseline of 680 million metric tons of CO2 equivalent. CCX ceased trading carbon credits at the end of 2010 due to inactivity in the U.S. carbon markets, although carbon exchanges were intended to still be facilitated.
For more information, visit: www.theice.com/publicdocs/ccx/protocols/CCX_Protocol_Renewable_Energy.pdf
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CDM
Clean Development Mechanism - The CDM was a mechanism established by Article 12 of the Kyoto Protocol for project-based emission reduction (CDM) activities in developing countries. The CDM was designed to meet two main objectives: to address the sustainability needs of the host country and to increase the opportunities available to Annex 1 Parties to meet their GHG reduction commitments. Currently, the fate of CDM's functionality after 2020 remains uncertain since the second Kyoto Protocol commitment period ended in 2020. Therefore, there will no longer be any legal basis for using CDM. The new climate market mechanism under Article 6 of the Paris Agreement, the Sustainable Development Mechanism (SDM), is in the process of being established.
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CDP
Carbon Disclosure Project, formerly - CDP is a not-for-profit that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts, and drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests.
For more information, visit: www.cdp.net
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CDP-ACS
CDP’s Activity Classification System - In order to allocate sector-specific questions to companies, CDP has developed an Activity Classification System (CDP-ACS). This is a framework used to categorize companies by the most relevant sectors. CDP-ACS focuses on the diverse activities from which companies derive revenue and associates these with the impacts on their business from climate change, deforestation, and water security.
For more information, visit: https://cdn.cdp.net/cdp-production/cms/guidance_docs/pdfs/000/001/540/original/CDP-ACS-full-list-of-classifications.pdf
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CDSB
Climate Disclosure Standards Board - CDSB was an international consortium of business and environmental NGOs, committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital. However, on 31st January 2022, the CDSB was consolidated into the IFRS Foundation to support the work of the newly established International Sustainability Standards Board (ISSB).
For more information, visit: www.cdsb.net
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CEM
Continuous Emission Monitoring - CEM is the total equipment necessary for the determination of a gas or particulate matter concentration or emission rate using pollutant analyzer measurements and a conversion equation, graph, or computer program to produce results in units of the applicable emission limitation or standard.
For more information, visit: www.epa.gov/emc/emc-continuous-emission-monitoring-systems
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CER
Certified Emission Reductions - A CER is a unit of emission reduction generated by a Clean Development Mechanism CDM project. CERs were tradable commodities that could be used by Annex 1 countries to meet their commitments under the Kyoto Protocol.
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CFCs
Chlorofluorocarbons - CFCs are a group of compounds of carbon, hydrogen, chlorine, and fluorine, which are the typical gases used in cleaning solvents, refrigerants, and aerosol propellants. CFCs harm the ozone layer in the earth's atmosphere.
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CHP
Combined Heat and Power (CHP), also known as Cogeneration - A CHP is a facility producing both electricity and steam/heat using the same fuel supply.
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CNG
Compressed Natural Gas - CNG is compressed methane that replaces gasoline, diesel fuel, and propane. CNG is said to have a lower cost and lower emissions than gasoline and diesel.
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COP
Conference of Parties - The COP is the supreme decision-making body of the UNFCCC. All States that are Parties to the Convention are represented at the COP, at which they review the implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements.
For more information, visit: https://unfccc.int/process/bodies/supreme-bodies/conference-of-the-parties-cop
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COP 26
26th Conference of the Parties - COP26 refers to the 26th annual Conference of the Parties held in Glasgow, Scotland, United Kingdom, from October 31, 2021 – November 12, 2021. The main goal was to ensure that countries could achieve global net-zero by 2050 and keep a maximum of 1.5 C degrees of warming. In order to achieve this, countries agreed to phase down their use of coal, provide low-resource countries with more financial support, and more than 100 countries agreed to cut methane emissions by 2030.
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COP22
22nd Conference of the Parties - The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) met for the first time in conjunction with COP 22 in Marrakesh (in November 2016) and adopted its first two decisions.
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COP21
21st Conference of the Parties - COP21 refers to the 21st annual Conference of the Parties held in Paris, France, from December 1-12, 2015. Also known as the CMP11 referring to the Meeting of the Parties to the Kyoto Protocol during the eleventh session of COP20. At COP21 in Paris, on December 12, 2015, Parties to the UNFCCC reached a landmark agreement to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low carbon future. The Paris Agreement’s central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.
For more information, visit: https://unfccc.int/process-and-meetings/the-paris-agreement/what-is-the-paris-agreement
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COP20
20th Conference of the Parties - COP20 refers to the 20th annual Conference of the Parties held in Lima, Peru, from December 1-12, 2014. Also known as the CMP10 referring to the Meeting of the Parties to the Kyoto Protocol during the tenth session of COP20.
For more information, visit: https://unfccc.int/process/bodies/supreme-bodies/conference-of-the-parties-cop
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COP17
17th Conference of the Parties - COP17 took place from November 28 – December 9, 2011, in Durban, South Africa. The major accomplishment of this conference was that all countries in attendance agreed to begin reducing their emissions.
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COP15
15th Conference of the Parties - The 2009 United Nations Climate Change Conference, also known as the Copenhagen Summit, was held at the Bella Center in Copenhagen, Denmark, between December 7-18, 2009. COP15 included significant discussions on limiting the global average temperature to no more than 2 degrees Celsius above pre-industrial levels. Developed countries promised $30 billion between 2010–2012 to aid developing countries in reducing their GHG emissions. The REDD+ was also established in this session.
For more information, visit: https://unfccc.int/process-and-meetings/conferences/past-conferences/copenhagen-climate-change-conference-december-2009/copenhagen-climate-change-conference-december-2009
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CSA
Climate Scenario Analysis - CSA is a process outlined by the Task Force on Climate-Related Financial Disclosures (TCFD) that allows companies to evaluate risks and opportunities relevant to the company in the context of potential climate scenarios. The output of this informs risk management into the future and increases company resilience.
For more information, visit: https://assets.bbhub.io/company/sites/60/2020/10/FINAL-TCFD-Technical-Supplement-062917.pdf
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CSR
Corporate Social Responsibility - CSR is the management concept that private businesses adopt to improve their sustainability related to the triple bottom line: people, planet, and profit.
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CSRD
Corporate Sustainability Reporting Directive - On January 5, 2023, the CSRD was released by the European Commission to establish the rules concerning the social and environmental information that large EU companies are required to report. The European Sustainability Reporting Standards (ESRS) is the reporting directive under the CSRD.
For more information, visit: https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en
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CWA
Clean Water Act - The CWA is the US environmental law that regulates pollutant discharges into the US waterways. The CWA also gave the EPA the authority to implement pollution control programs such as setting wastewater standards for industry. Therefore, all entities that discharge water and wastewater are required to comply with the CWA.
For more information, visit: www.epa.gov/laws-regulations/summary-clean-water-act
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DAC
Direct air capture - DAC is a process of capturing carbon dioxide (CO2) directly from the atmosphere as opposed to other point sources. Currently, there are two technologies that are being used to capture CO2 from the air. Liquid systems are able to pass air through chemical solutions which remove CO2 and return the rest of the air back into the atmosphere. Solid DAC uses filters that bind to CO2. When heat is applied to the filters, they release the previously captured CO2 which can then be captured.
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DEFRA
UK Department for Environment, Food and Rural Affairs - DEFRA is the UK government department responsible for safeguarding the natural environment, supporting the world-leading food and farming industry, and sustaining a thriving rural economy.
For more information, visit: www.gov.uk/government/organisations/department-for-environment-food-rural-affairs
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DJSI
Dow Jones Sustainability Indices - The Dow Jones Sustainability Indices were launched in 1999 as the first global sustainability benchmarks. The indices are offered cooperatively by RobecoSAM and S&P Dow Jones Indices. The family tracks the stock performance of the world's leading companies in terms of economic, environmental, and social criteria. The indices serve as benchmarks for investors who integrate sustainability considerations into their portfolios and provide an effective engagement platform for companies who want to adopt sustainable best practices.
For more information, visit: www.spglobal.com/spdji/en/indices/esg/dow-jones-sustainability-world-index/#overview
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DOE
U.S. Department of Energy - The DOE is a cabinet-level department of the U.S. federal government and has the authority to deal with United States’ policies regarding energy and safety in handling nuclear material.
For more information, visit: www.energy.gov/
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DSM
Demand Side Management - DSM programs influence the amount or timing of customers’ energy use in order to optimize available and planned generation resources. This process can reduce electricity consumption, especially during peak hours, and can also be a component of water conservation programs.
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EC-DGE
European Commission Directorate-General for Environment - The EC-DGE is the department responsible for EU policy on the environment. It aims to protect, preserve and improve the environment for present and future generations, proposing and implementing policies that ensure a high level of environmental protection and preserve the quality of life of EU citizens. It also makes sure that Member States apply EU environmental law correctly and it represents the European Union in environmental matters at international meetings.
For more information, visit: https://ec.europa.eu/info/departments/environment_en
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EEI
Energy Efficiency Indicator (EEI) Survey - Conducted by Johnson Controls, the EEI Survey tracks current and planned investments, key drivers, and organizational barriers to improving energy efficiency in facilities. In 2021, the 15th edition of the survey represented countries that included: Brazil, China, France, Germany, India, Japan, Mexico, United Arab Emirates, United Kingdom, and the United States.
For more information, visit: www.johnsoncontrols.com/2021EEI
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EERE
Energy Efficiency & Renewable Energy, U.S. Department of Energy - The purpose of EERE is to create and sustain American leadership in the transition to a global clean energy economy. Its vision is a strong and prosperous America powered by clean, affordable, and secure energy. In recent years, EERE's priority has shifted to decarbonization technologies.
For more information, visit: www.energy.gov/eere/about-office-energy-efficiency-and-renewable-energy
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EDGAR
Electronic Data Gathering, Analysis, and Retrieval - EDGAR is the primary system in which companies submit documents under The Securities and Exchange Commission (SEC). It was established in 1984 to increase efficiency and allows the public to access corporate information that has been submitted to the SEC.
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EJ
Environmental Justice - According to the US Environmental Protection Agency (EPA), environmental justice is the equitable and just treatment of all people regardless of race, color, national origin, and income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. This movement links environmental and economic issues to the health of communities and neighborhoods.
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EIA
Energy Information Administration - EIA is responsible for collecting, analyzing, and disseminating energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. EIA programs cover data on coal, petroleum, natural gas, electric, renewable and nuclear energy.
For more information, visit: www.eia.gov/
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EP
Equator Principles - The purpose of the Equator Principles is to provide a baseline and framework for the financial industry to determine, assess and manage environmental and social risks when financing projects.
For more information, visit: https://equator-principles.com/
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EPA
U.S. Environmental Protection Agency - The EPA is an independent agency of the U.S. federal government whose mission is to protect human health and the environment. The agency was founded in 1970 and continues to create and enforce laws designed to protect the environment and human health.
For more information, visit: www.epa.gov/
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EPBB
Expected Performance-Based Buy-Down - An EPBB is a type of up-front incentive based on an estimate of your solar system’s expected performance. The performance estimate is based on system size, geographic location, and orientation at time of application. The EPBB incentive is offered only to systems smaller than 30 kW AC in California, under the California Solar Initiative.
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EPER
European Pollutant Emission Register - EPER is a web-based register, which enables the public to view data on emissions to water and air of 50 key pollutants from large and medium-sized industrial point sources in the European Union.
For more information, visit: www.eea.europa.eu/data-and-maps/data/eper-the-european-pollutant-emission-register-4
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E-PRTR
The European Pollutant Release and Transfer Register - E-PRTR is a Europe-wide register that provides easily accessible key environmental data from industrial facilities in European Union Member States and in Iceland, Liechtenstein, Norway, Serbia, and Switzerland. It replaced and improved upon the previous European Pollutant Emission Register (EPER).
For more information, visit: https://prtr.eea.europa.eu/
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ERU
Emission Reduction Unit - The ERU is a unit of emission reduction generated by a Joint Implementation (JI) project. ERUs are tradable commodities which can be used by Annex 1 countries to help them meet their commitment under the Kyoto Protocol.
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ESG
Environmental, Social, and Governance Criteria - ESG has a set of standards for a company's operations that socially conscious investors use when reviewing potential investments. These standards consider the sustainable and ethical impact of decision-making within a company's operations.
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ESRS
European Sustainability Reporting Standards - The ESRS is the reporting framework under the CSRD. The ESRS are a set of EU compliance and disclosure requirements that were adopted on July 31, 2023 by the European Commission, and developed by the European Financial Reporting Advisory Group (EFRAG).
For more information, visit: https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en
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EU ETS
European Union Emissions Trading System - The EU ETS is the cornerstone of the EU's strategy for fighting climate change. It is the first international trading system for CO2 emissions in the world and has been in operation since 2005.
For more information, visit: https://ec.europa.eu/clima/eu-action/eu-emissions-trading-system-eu-ets_en
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EU Taxonomy
EU Taxonomy - The EU taxonomy is a classification system that lists environmentally sustainable economic activities. The EU taxonomy helps companies, investors and policymakers define economic activities that are considered environmentally sustainable.
For more information, visit: https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en
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EUI
Energy Use Intensity - EUI is a unit of measurement that describes a building's energy use. EUI represents the energy consumed by a building relative to its size.
For more information, visit: www.energystar.gov/buildings/benchmark/understand_metrics/what_eui
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EV
Electric Vehicle - EVs use capable battery-electric motors, which is a clean technology that is cleaner and cheaper than oil. EVs produce less CO2 emissions than regular passenger vehicles.
For more information, visit: www.ucsusa.org/clean-vehicles/electric-vehicles
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EPR
Extended Producer Responsibility - EPR is a policy tool designed to promote the integration of environmental costs associated with goods throughout their life cycles into the market price of the products. EPR gives producers a significant responsibility – financial and/or physical – for the treatment or disposal of post-consumer products.
For more information, visit: www.oecd.org/env/tools-evaluation/extendedproducerresponsibility.htm
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FASB
Financial Accounting Standards Board - FASB is an independent, private-sector, not-for-profit organization that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP).
For more information, visit: www.fasb.org/
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FERC
Federal Energy Regulatory Commission - FERC regulates the price, terms, and conditions of power sold in interstate commerce and regulates the price, terms, and conditions of all transmission services. FERC is the federal counterpart to state utility regulatory commissions.
For more information, visit: www.ferc.gov/
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FSB
Financial Stability Board - The FSB was established in April 2009, as the successor to the Financial Stability Forum (FSF), with a broadened mandate to promote financial stability. The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. The FSB promotes international financial stability by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory, and other financial sector policies. It fosters a level playing field by encouraging the coherent implementation of these policies across sectors and jurisdictions. In December 2015, the FSB launched the industry-led Task Force on Climate-related Financial Disclosures (TCFD). The Task Force developed a set of recommendations for consistent, comparable, reliable, clear, and efficient climate-related disclosures by companies, as requested in the FSB’s proposal. The latest status report found that disclosure of climate-related financial information aligning with TCFD has increased by 10% in the last year; whereas, in 2019 it had increased by 4%.
For more information, visit: www.fsb.org/
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GAAP
Generally Accepted Accounting Principles - GAAP is a set of rules that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices. The SEC has expressed the desire to switch from GAAP to IFRS.
For more information, visit: www.accounting.com/resources/gaap/
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GDP
Gross Domestic Product - DGP is the monetary measure of a country's market value of all goods and services produced in a period of time. GDP is important to consider in sustainability because GDP serves as a measure of success and development in a country. There tends to be a trend where the more advanced of a country you are, the more you are invested in sustainability.
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GHG
Greenhouse Gas - GHG is any gas that absorbs infrared radiation in the atmosphere. Greenhouse gases include, but are not limited to, water vapor, carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), ozone (O3), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).
For more information, visit: www.epa.gov/climatechange/glossary.html
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GHG Protocol
Greenhouse Gas Protocol - The GHG Protocol published its corporate standard in 2001. The Protocol establishes standardized frameworks and guidance which account for greenhouse gas (GHG) emissions from public and private sector operations, value chains, and mitigation actions. Non-profit groups, government agencies, and universities that are preparing a GHG emissions inventory use this guidance for different emission categories such as Scope 1, Scope 2, and Scope 3.
Scope 1 emissions are direct GHG emissions that occur from sources that are controlled or owned by the company.
Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling.
Scope 3 emissions include GHG emissions that occur due to activities from assets not owned or controlled by the company, but are still part of the company’s value chain.
For more information, visit: https://ghgprotocol.org/
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GHGRP
EPA Greenhouse Gas Reporting Program - GHGRP is the EPA’s mandatory reporting program. Oil and gas companies that emit more than 25,000mt CO2e per EPA-defined facility.
For more information, visit: www.epa.gov/ghgreporting
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GMO
Genetically Modified Organism - A GMO is an organism (animal or plant species) in which the genetic material has been altered using genetic engineering techniques. This is very common to combat climate change impacts in agriculture and farming. This is relevant to sustainability because many agriculture companies rely on GMOs and research to sustain their company as the climate changes.
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GRESB
Global Real Estate Sustainability Benchmark - Investors use GRESB data and tools to manage ESG risks, so they can capitalize on opportunities and continuously invest with investment managers. GRESB also validates, scores, and benchmarks ESG performance data to help businesses assess if they are achieving ESG goals. For GRESB to have data from businesses, businesses complete GRESB assessments on ESG performance of their assets and portfolios.
For more information, visit: https://gresb.com/
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GRI
Global Reporting Initiative - GRI is an international independent organization that has pioneered corporate sustainability reporting since 1997. GRI helps businesses, governments and other organizations understand and communicate the impact of business on critical sustainability issues such as climate change, human rights, corruption and many others.
For more information, visit: www.globalreporting.org
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GSSB
Global Sustainability Standards Board - Established as an independent operating entity under the auspices of GRI, the GSSB is formed of members with a broad range of expertise and experience, and who have the sole responsibility of setting globally accepted standards for sustainability reporting. The GSSB works in the public interest and according to the vision and mission of GRI.
For more information, visit: www.globalreporting.org/information/about-gri/governance-bodies/Global-Sustainability-Standard-Board/
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GWP
Global Warming Potential - The Intergovernmental Panel on Climate Change (IPPC)’s Fifth Assessment Report (AR5) defines the GWP as “an index, based on radiative properties of greenhouse gases, measuring the radiative forcing following a pulse emission of a unit mass of a given greenhouse gas in the present day atmosphere integrated over a chosen time horizon, relative to that of carbon dioxide. The GWP represents the combined effect of the differing times these gases remain in the atmosphere and their relative effectiveness in causing radiative forcing. The Kyoto Protocol is based on GWPs from pulse emissions over a 100-year time frame.” By using GWPs, GHG emissions from multiple gases can be standardized to a carbon dioxide equivalent (CO2e).
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HCFCs
Hydrochlorofluorocarbons - HCFCs are a group of compounds and gases that are thousands of times more potent than carbon dioxide when released into the atmosphere. Fluorinated gases are growing worldwide as developing nations seek relief from high heat and humidity.
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HRDD
Human Rights Due Diligence - HRDD is an internationally recognized standard and risk management tool for companies to address human rights impacts within their operations, supply chain, and business relationships. The management process allows companies to address human rights impacts.
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HV
Heating Value - HV is the amount of energy released when a fuel is burned completely. Care must be taken not to confuse higher heating values (HHVs), used in the US and Canada, and lower heating values, used in all other countries. Lower heating value (LHV) and Higher heating value (HHV), also known as net calorific value (NCV) and gross calorific value (GCV) respectively, are different measures of heat energy released from fuel combustion. Figures measured in HHV are larger because HHV includes the latent heat of water vaporization from combustion, whereas LHV does not. The difference between LHV and HHV is related to the fuel’s hydrogen content.
For further details, refer to the calculation tool for stationary combustion available at www.ghgprotocol.org
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IASB
International Accounting Standards Board - The IASB is an independent group of experts with an appropriate mix of recent practical experience in setting accounting standards, in preparing, auditing, or using financial reports, and in accounting education. The IFRS Foundation Constitution outlines the full criteria for the composition of the Board. The IFRS Foundation is a not-for-profit international organization responsible for developing a single set of high-quality, global accounting standards, known as IFRS Standards. IFRS Standards are now required in over 140 jurisdictions, with many others permitting their use.
For more information, visit: www.ifrs.org/groups/international-accounting-standards-board/
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ICP
Internal Carbon Pricing - ICP is a multifaceted tool that can support companies in assessing climate-related risks and opportunities in the transition to a low-carbon economy. As countries move to implement measures that contribute to achieving the ambitions of the Paris Agreement, the business impact of this low carbon transition will become more profound. ICP allows companies to identify and act on the risks and opportunities that accompany this transition, as also recommended by the Financial Stability Board Task Force on Climate-related Financial Disclosures (FSBTCFD). ICP gives risks and opportunities a monetary value, consolidating them into a uniform metric such as carbon costs or benefits. This enables financial decision-makers such as Chief Financial Officers to make the low-carbon transition an integral part of rational, economic decision-making.
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IEA 2DS
International Energy Agency's 2°C Scenario - The IEA's 2°C Scenario (2DS) is the focus of Energy Technology Perspectives and its related publications. The 2DS describes an energy system consistent with an emissions trajectory that recent climate science research indicates would give an 80% chance of limiting average global temperature increase to 2°C. It sets the target of cutting energy-related CO2 emissions by more than half in 2050 (compared with 2009) and ensuring that they continue to fall thereafter. Importantly, the 2DS acknowledges that transforming the energy sector is vital, but not the sole solution: the goal can only be achieved provided that CO2 and other GHG emissions in non-energy sectors are also reduced. The 2DS is broadly consistent with the World Energy Outlook 450 Scenario.
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IEA 450
International Energy Agency's 450 Scenario - The IEA's 450 Scenario sets out an energy pathway that is consistent with a 50% chance of meeting the goal of limiting the long-term increase in average global temperature to 2°C compared with pre-industrial levels by limiting the concentration of greenhouse gases (GHGs) in the atmosphere to around 450 parts per million of CO2-equivalent.
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IFRS
International Financial Reporting Standards - The IFRS Foundation is a not-for-profit, public interest organization established to develop high-quality, understandable, enforceable, and globally accepted accounting and sustainability disclosure standards.
Standards are developed by two standard-setting boards, the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB). ISSB developed IFRS - IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS - IFRS S2 Climate-related Disclosures.
For more information, visit: www.ifrs.org/
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IIRC
International Integrated Reporting Council - IIRC is a global coalition of regulators, investors, companies, standard setters, the accounting profession, and NGOs. The coalition is promoting communication about value creation as the next step in the evolution of corporate reporting.
For more information, visit: www.integratedreporting.org
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ILO
International Labour Organization - A United Nations agency that sets international labour standards and promotes social protection and work opportunities for all. ILO brings together governments, employers, and workers of 187 member States to set labour standards, develop policies, and devise programs promoting decent work for all women and men.
For more information, visit: www.ilo.org/global/lang--en/index.htm
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IMF
International Monetary Fund - The IMF is an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The IMF's primary purpose is to ensure the stability of the international monetary system - the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund's mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.
For more information, visit: www.imf.org/en/About
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IoE
The Internet of Energy - IoE is the implementation of a smart energy infrastructure system that was created through the Internet of Things (IoT). This technology increases efficiency and prevents energy from being wasted. It can also help countries manage their energy demand during peak and low consumption hours.
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IPCC
Intergovernmental Panel on Climate Change - The IPCC was established jointly by the United Nations Environment Programme and the World Meteorological Organization in 1988. The purpose of the IPCC is to assess information in the scientific and technical literature related to all significant components of the issue of climate change. The IPCC draws upon hundreds of the world’s expert scientists as authors and thousands as expert reviewers. Leading experts on climate change and environmental, social, and economic sciences from some 60 nations have helped the IPCC to prepare periodic assessments of the scientific underpinnings for understanding global climate change and its consequences. With its capacity for reporting on climate change, its consequences, and the viability of adaptation and mitigation measures, the IPCC is also looked to as the official advisory body to the world’s governments on the state of the science of the climate change issue. For example, the IPCC organized the development of internationally accepted methods for conducting national greenhouse gas emission inventories. Currently, the IPCC is finishing up the Sixth Assessment Report with a Synthesis Report to be published on September 6th, 2022.
For more information, visit: https://www.ipcc.ch/
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IPIECA
International Petroleum Industry Environmental Conservation Association - IPIECA develops, shares and promotes good practices and knowledge to help the industry and improve its environmental and social performance. They do this with the understanding that the issues that dominate the sustainable development agenda – climate and energy, environmental and social issues – are too big for individual companies to tackle alone. The industry must work together to achieve improvements that have a real impact, and the IPIECA helps to achieve this goal.
For more information, visit: www.ipieca.org/about-us/
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IRP
Integrated Resource Planning - IRP is a comprehensive decision support tool and road map for meeting a company's objective of providing reliable and least-cost electric service to all of its customers while addressing the substantial risks and uncertainties inherent in the electric utility business.
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ISI
Institute for Sustainable Infrastructure - ISI developed Envision, which is a rating system and best practice resource to help you become successful in implementing sustainability into your infrastructure projects. Envision measures the sustainability of an infrastructure project from design through construction and maintenance. It can be used by infrastructure owners, design teams, community groups, environmental organizations, constructors, regulators, and policymakers to: (1) Meet sustainability goals; (2) Gain public recognition for high levels of achievement in sustainability; (3) Help communities and project teams collaborate and discuss, “Are we doing the right project?” and, “Are we doing the project right?”; (4) Make decisions about the investment of scarce resources; (5) Include community priorities in civil infrastructure projects.
For more information, visit: https://sustainableinfrastructure.org
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ISO
International Organization for Standardization - ISO is an independent, non-governmental international organization with a membership of 169 national standards bodies. Through its members, it brings together experts to share knowledge and develop voluntary, consensus-based, market-relevant International Standards that support innovation and provide solutions to global challenges. Some categories of ISO standards include: quality management, environmental management, health and safety, energy management, food safety, and IT security.
For more information, visit: www.iso.org/
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ISSB
International Sustainability Standards Board - The ISSB is a standards-setting board of the International Financial Reporting Standards (IFRS) Foundation. The board develops standards for sustainability disclosure writing that will help companies report globally comparable information on sustainability-related risks and opportunities. More specifically, the ISSB has set out four key objectives to:
develop standards for a global baseline of sustainability disclosures;
meet the information needs of investors;
enable companies to provide comprehensive sustainability information to global capital markets; and
facilitate interoperability with disclosures that are jurisdiction-specific and/or aimed at broader stakeholder groups.
Previous standards are informing the development of this global baseline - The ISSB builds on the work of market-led investor-focused reporting initiatives, including the Climate Disclosure Standards Board (CDSB), the Task Force on Climate-Related Financial Disclosures (TCFD), the Value Reporting Foundation’s Integrated Reporting Framework and industry-based SASB Standards, as well as the World Economic Forum’s Stakeholder Capitalism Metrics.
For more information, visit: www.ifrs.org/groups/international-sustainability-standards-board/
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ITC
Investment Tax Credit - The federal ITC is a 30% tax credit for installing a solar system in your home. You can apply this credit to your tax bill the following spring.
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KPI
Key Performance Indicator - KPIs are a type of performance measurement that indicate the success of an organization, usually within a particular activity (e.g., sustainability) in which they engage in. By identifying KPIs and measuring the KPIs through the lens of sustainability, businesses/companies can review what they need to work on, alter goals, and ensure that they are meeting these KPIs to continuously improve the company's sustainability.
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LCA
Life Cycle Analysis - An LCA is an assessment of the sum of a product’s effects (e.g. GHG emissions) at each step in its life cycle, including resource extraction, production, use, and waste disposal. This assessment helps evaluate the environmental impact of a product.
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LDAR
Leak Detection and Repair - LDAR has long been a requirement for industries monitoring for volatile organic compounds, but in the last decade has become an increasingly important methane reduction strategy in the oil and gas industry.
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LEED
Leadership in Energy and Environmental Design - LEED is the most widely used green building rating system in the world. Buildings, communities, or other projects can follow LEED frameworks to ensure healthy, highly efficient, and cost-saving green buildings. The LEED certification indicates sustainability achievement.
For more information, visit: http://leed.usgbc.org
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LNG
Liquefied Natural Gas - LNG is natural gas that has been cooled to a liquid state, approximately -260° Fahrenheit, for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state.
For more information, visit: www.eia.gov/energyexplained/natural-gas/liquefied-natural-gas.php
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LPG
Liquefied Petroleum Gas - LPG, or in common terms propane or butane, are flammable mixtures of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.
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MSCI
Morgan Stanley Capital International - MSCI‘s research-based indexes and analytics have helped the world‘s leading investors build and manage better portfolios. Clients rely on MSCI's offerings for deeper insights into the drivers of performance and risk in their portfolios, broad asset class coverage, and innovative research.
For more information, visit: www.msci.com/
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NAAQS
National Ambient Air Quality Standards - The EPA has set NAAQS for six principal pollutants, which are called "criteria" air pollutants: Carbon Monoxide, Lead, Nitrogen Dioxide, Ozone, Particulate Matter, and Sulfur Dioxide. These air pollutants can be harmful to public health and the environment.
For more information, visit: www.epa.gov/criteria-air-pollutants/naaqs-table
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NFI
Non-Financial Information - NFI includes environmental effects, political situations, and social responsibilities.
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NFR
Non-Financial Reporting - EU law requires large companies to disclose certain information on the way they operate and manage social and environmental challenges, in order to be transparent and help investors, consumers, policymakers, and other stakeholders to evaluate the companies’ non-financial performance, which encourages these companies to develop a responsible approach to business. Directive 2014/95/EU lays down the rules on disclosure of non-financial and diversity information by large companies. This directive amends the accounting directive 2013/34/EU. Companies are required to include non-financial statements in their annual reports from 2018 onward.
For more information, visit: https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/non-financial-reporting_en
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NGFS
Network of Central Banks and Supervisors for Greening the Financial System - The NGFS was founded at the Paris One Planet Summit in December 2017 with the goal of encouraging organizations within the financial sector to prioritize green and low-carbon investments. The group volunteers their time to share best practices related to strengthening environment and climate risk management in order to meet the goals of the Paris Agreement.
For more information, visit: www.ngfs.net/en
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NGO
Non-Governmental Organization - An NGO is a non-profit, voluntary citizens' group that is organized on a local, national or international level, specifically not funded by any level of government, or at least the majority of its funding is not dependent on the government.
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NPDES
National Pollutant Discharge Elimination System - NPDES is a permitting program that addresses water pollution by regulating point sources that discharge pollutants to waters of the United States. The permit provides two levels of control: technology-based limits and water quality-based limits.
For more information, visit: www.epa.gov/npdes/about-npdes
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NPOs
Non-Product Outputs - NPOs comprise solid waste, wastewater, and air emissions. Any Output that is not a Product Output is by definition a Non-Product Output (NPO) and comprises waste and emissions in solid, liquid, and gaseous form.
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NSPS
New Source Performance Standards (for Methane emissions) - The New Source Performance Standards for GHG emissions refer to the standards put into place under Section 111(b) and (d)of the Clean Air Act. Administrations have been making moves back and forth to add, remove and add again requirements specific to methane for the oil and gas industry. The recently proposed NSPS OOOOb and OOOOc are estimated to reduce methane emissions by approximately 41 million tons through 2035.
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NZAM
Net Zero Asset Managers - The NZAM initiative is a group of 273 asset managers from around the world who are dedicated to the goal of net zero greenhouse gas emissions by 2050 or sooner. The initiative was created to demonstrate the asset management industry’s commitment to prioritize investment strategies that are necessary to achieve these climate goals and to provide a forum for leaders to share best practices in aligning investments to the net zero goal. The signatories of the initiative agree to enact specific activities within their organization in order to achieve emissions reductions. The Net Zero Asset Managers Commitment is found here.
For more information, visit: www.netzeroassetmanagers.org/
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OCGT
Open Cycle Gas Turbine - The OCGT uses hot gas to drive the turbine in order to generate electricity. The working fluid is replaced continuously while flowing through the gas turbine. The gasses coming out from the gas turbine are exhausted into the atmosphere.
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ODP
Ozone Depletion Potential - The ODP of a chemical compound is the relative amount of degradation to the ozone layer it can cause, with trichlorofluoromethane (R-11 or CFC-11) being fixed at an ODP of 1.0.
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OECD
Organisation for Economic Co-operation and Development - The OECD is an intergovernmental economic organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade. The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems.
For more information, visit: www.oecd.org/about/
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OGI
Optical Gas Imaging - OGI is a technology that allows for visualization of emission leaks with a spectroscopic camera. New developments in this technology allow for continuous and remote monitoring for methane emissions.
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OGMP 2.0
Oil and Gas Methane Partnership 2.0 - OGMP is a voluntary methane emission reduction framework that was designed by the UNEP-led Climate and Clean Air Coalition’s (CCAC’s) Mineral Methane Initiate. The framework provides participants a pathway to demonstrate that they are contributing to climate mitigation and share their results with stakeholders.
For more information, visit: www.ogmpartnership.com/
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PACE
Property Assessed Clean Energy - Cities are beginning to offer PACE programs that provide a loan for solar panels. The program pays for the panels and the property owner pays for the solar system on the property tax bill, over approximately 20 years, with interest. PACE provides loans for the cost of the panels before the federal ITC is rewarded – this means that the property owner will need to make payments on a larger, pre-ITC loan.
For more information, visit: www.energy.gov/eere/slsc/property-assessed-clean-energy-programs
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PFCs
Perfluorocarbons - PFCs are chemicals composed of carbon and fluorine only. PFCs are powerful greenhouse gases that were introduced as alternatives to ozone depleting substances. PFCs replace chlorofluorocarbons (CFCs) in manufacturing semiconductors.
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PO
Product Output - A finished product, made from raw materials, which is then shipped out to customers.
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PPA
Power Purchase Agreement - A PPA is a financing option for residential solar in which a solar company owns (and installs, monitors, and maintains) the property owner’s solar panels and the property owner pays for electricity. With PPAs, homeowners avoid the high upfront costs of installing solar and pay a monthly rate that depends on how much energy their panels produce.
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PPM
Parts Per Million - PPM is the number of parts of a chemical found in one million parts of a particular gas, liquid, or solid.
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PRI
Principles for Responsible Investment - The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social, and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate, and ultimately of the environment and society as a whole. The PRI is truly independent. It encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations.
For more information, visit: www.unpri.org/pri/about-the-pri
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PTC
Production Tax Credit - The federal PTC is a per-kilowatt-hour tax credit for generating electricity, for a certain period of the solar system’s operation. Those who are less interested in PTCs can apply for an ITC, and vice versa.
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PUC
Public Utilities Commission - A PUC is the state agency with regulatory jurisdiction over certain utilities.
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PV
Photo-Voltaic - A PV Cell is an electronic device consisting of layers of semiconductor materials fabricated to form a junction (adjacent layers of materials with different electronic characteristics) and electrical contacts, and is capable of converting incident light directly into electricity (direct current).
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RDF
Refuse-Derived Fuel - RDF is a fuel composed of processed garbage and is used in some electric generation plants.
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RE100
RE100 is the corporate renewable energy campaign that unites hundreds of multinational businesses in the commercial and industrial sectors that are committed to sourcing 100% of their electricity from renewable sources. Being a member of the initiative is a meaningful way for corporations to engage in mitigating the effects of climate change.
For more information, visit: www.there100.org/
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REC
Renewable Energy Certificate - An REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every MWh of electricity they produce. Utilities that have to fulfill an RPS requirement can purchase these RECs on the open market.
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REDD+
Reducing Emissions from Deforestation and Forest Degradation - REDD+ is a framework to reduce emissions by increasing conservation. It was adopted at COP19 in Warsaw, in December 2013 and is also part of Article 5 of the Paris Agreement. Its establishment encouraged developing countries to aid in mitigation efforts by expanding conservation efforts and slowing/or preventing forest loss. There were three phases of the REDD+ program which included developing national strategies, implementing action plans, and verifying and measuring results/progress.
For more information, visit: https://redd.unfccc.int/
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ROI
Return on Investment - ROI is a ratio between net profit and cost of investment. A higher ROI indicates the investment is favorable. When investing in sustainability reporting or improving corporate sustainability, ROI is important to mention to shareholders and the people of this company. These stakeholders want high ROI so that they actually invest in sustainability reporting to improve their overall corporate sustainability.
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RPS
Renewable Portfolio Standard - RPS is a regulation that requires the increased production of energy from renewable energy sources, such as wind, solar, biomass, and geothermal. RPS is a tool that places an obligation on electricity supply companies to produce a specified fraction of their electricity from renewable energy sources. Then, certified renewable energy generators earn certificates for every unit of electricity they produce and can sell these along with their electricity to supply companies. Supply companies then pass the certificates to some form of regulatory body to demonstrate their compliance with their regulatory obligations.
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R&D
Research and Development - R&D refers to innovative activities undertaken by corporations or governments in developing new services or products, or improving existing services or products, in order to maximize efficiency in corporations and governments.
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SASB
Sustainability Accounting Standards Board - SASB is an independent standard-setting organization that develops and maintains robust reporting standards that enable businesses around the world to identify, manage and communicate financially material sustainability information to their investors. SASB standards are evidence-based, developed with broad market participation, and are designed to be cost-effective for companies and decision-useful for investors. To download any SASB industry-specific standards, or learn more about SASB, please visit www.SASB.org.
To download any SASB industry-specific standards, or for more information, visit: www.sasb.org/
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SBSTA
Subsidiary Body for Scientific and Technological Advice - The SBSTA is one of two permanent subsidiary bodies to the United Nations Framework Convention on Climate Change (UNFCCC) established by the COP/CMP. It supports the work of the COP, the CMP, and the CMA through the provision of timely information and advice on scientific and technological matters as they relate to the Convention, its Kyoto Protocol, and the Paris Agreement. Key areas of work for the SBSTA include the impacts, vulnerability, and adaptation to climate change, promoting the development and transfer of environmentally-sound technologies, and conducting technical work to improve the guidelines for preparing and reviewing greenhouse gas emission inventories from Annex I Parties. The SBSTA carries out methodological work under the Convention, the Kyoto Protocol, and the Paris Agreement, and promotes collaboration in the field of research and systematic observation of the climate system.
For more information, visit: https://unfccc.int/process/bodies/subsidiary-bodies/sbsta
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SBTs
Science Based Targets - Targets adopted by companies to reduce greenhouse gas (GHG) emissions are considered “science-based” if they are in line with the level of decarbonization required to keep global temperature increase below 2 degrees Celsius compared to pre-industrial temperatures, as described in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC AR5). The Science Based Targets initiative (SBTi) is a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and one of the We Mean Business Coalition commitments, to champion science-based target setting as a powerful way of boosting companies' competitive advantage in the transition to a low carbon economy.
For more information about SBTs, visit: https://sciencebasedtargets.org/
For more information about SBTi, visit: https://sciencebasedtargets.org/about-the-science-based-targets-initiative/
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SDGs
Sustainable Development Goals - The SDGs were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet, and ensure people enjoy peace and prosperity. These 17 Goals build on the successes of the Millennium Development Goals while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace, and justice, among other priorities. The goals are interconnected – often the key to success on one will involve tackling issues more commonly associated with another.
For more information, visit: www.undp.org/content/undp/en/home/sustainable-development-goals.html
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SDM
The Sustainable Development Mechanism - SDM follows the Clean Development Mechanism (CDM), which was established under the Kyoto Protocol. It is a new carbon market instrument that is to be used after 2020. Since the SDM is to be overseen internationally, it could take several years to come to an agreement regarding its procedures. Ideally, this mechanism will unite countries, reduce the cost of climate change mitigation and drive sustainable development.
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SEC
US Securities and Exchange Commission - The SEC is an independent agency responsible for protecting investors, impacting the economy, and maintaining a fair and orderly market. It was created in 1929 after the Wall Street Crash. The SEC requires public companies, fund and asset managers, as well as other market participants to disclose financial information so that investors have the information they need to make educated decisions about their investments. In March 2022, they released a new rule that would require companies to disclose their Scope 1 and Scope 2 emissions. Some companies would also be required to disclose their Scope 3 emissions as well.
For more information, visit: www.sec.gov/
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SFDR
The Sustainable Finance Disclosure Regulation - SFDR was implemented on March 21st, 2021. It is a European regulation that impacts asset managers, banks, and fund brokers as well as drives sustainable investment. It was introduced to prevent greenwashing and increase transparency around sustainability claims made by financial market participants.
For more information, visit: www.eurosif.org/policies/sfdr/
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T&D
Transmission and Distribution - T&D refers to the different stages of carrying electricity over poles and wires from generators to a home or a business.
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TCFD
Task Force on Climate-related Financial Disclosures - The FSB Task Force on Climate-related Financial Disclosures (TCFD) develops voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders. The purpose of TCFD is to provide more disclosure about climate-related disclosures to the public.
For more information, visit: www.fsb-tcfd.org/about/
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TNFD
Taskforce on Nature-related Financial Disclosures - The TFND is an international risk management and disclosure framework used for organizations to report on nature-related risks. Within the framework, guidance is provided for land, oceans, freshwater, and atmosphere. Currently, the TFND framework remains in its beta stage with the first version being published on March 15, 2022. The goal of this task force is to encourage a shift of financial investments towards nature-positive outcomes instead of nature-negative outcomes. The guidance is targeted toward investors, banks, analysts, corporations, regulators, stock exchanges, and accounting firms. The final version of this framework will be presented in September 2023.
For more information, visit: https://tnfd.global/
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UK ETS
United Kingdom Emissions Trading Scheme - The UK ETS was a voluntary emissions trading system created in 2002 as a pilot prior to the mandatory European Union Emissions Trading Scheme (EU ETS) which it now runs in parallel with. It closed to new entrants in 2009.
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UNDP
United Nations Development Programme - UNDP works in about 170 countries and territories, helping to achieve the eradication of poverty and the reduction of inequalities and exclusion. UNDP helps countries to develop policies, leadership skills, partnering abilities, institutional capabilities, and build resilience in order to sustain development results. They oversee the 17 Sustainable Development Goals (SDGs).
For more information, visit: www.undp.org/
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UNFCCC
United Nations Framework Convention on Climate Change - Signed in 1992 at the Rio Earth Summit, the UNFCCC is a milestone international environmental treaty that provides an overall framework for international efforts to mitigate climate change. In line with the Kyoto Protocol and an amendment issued by the Greenhouse Gas Protocol in May 2013, the basket of greenhouse gases (GHGs) consists of: Carbon dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbon family of gases (HFCs), Perfluorocarbon family of gases (PFCs), Sulfur Hexafluoride (SF6), and Nitrogen Trifluoride (NF3)*.
*Nitrogen Trifluoride (NF3) is now considered a potent contributor to climate change and is therefore mandated to be included in national inventories under the UNFCCC. NF3 should also be included in GHG inventories under the GHG Protocol Corporate Standard, and the GHG Protocol Corporate Value Chain (Scope 3) Standard.
For more information, visit: https://unfccc.int/process-and-meetings/the-convention/what-is-the-united-nations-framework-convention-on-climate-change
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UNGC
United Nations Global Compact - UNGC is a non-binding United Nations agreement to encourage businesses worldwide to adopt sustainable and socially responsible policies grounded in 10 Principles. With these implemented policies, businesses will report on their implementation.
For more information, visit: www.unglobalcompact.org/
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USGBC
United States Green Building Council - USBGC is a membership-based non-profit organization that promotes sustainability in building design, construction, and operation. USGBC is committed to transforming how buildings are designed, constructed, and operated through LEED, the world’s most widely used green building system with more than 100,000 buildings participating today.
For more information, visit: www.usgbc.org/
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VRF
Value Reporting Foundation - The VRF was a global nonprofit organization that was founded in 2010. The aim of the organization was to provide resources to help businesses and investors understand enterprise value. In 2021, The IFRS announced that the VRF and CDSB would be consolidated by the end of June 2022.
For more information, visit: https://www.valuereportingfoundation.org/
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VEP
Voluntary Environmental Programs - VEPs improve the environment by encouraging, rather than mandating, businesses and other organizations to adopt environmentally protective measures. Any level of government, industry and non-governmental organizations can run a VEP.
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WBCSD
World Business Council for Sustainable Development - The WBCSD is a CEO-led organization of over 200 international companies working together to accelerate the transition to a sustainable world. Scope classifies whether GHG emissions are created by an organization itself, or are created by other related organizations, for example, electricity suppliers or logistics companies. There are three classifications of Scope: Scope 1, Scope 2, and Scope 3. The classification of Scope derives from the World Resources Institute (WRI) and the WBCSD, ‘GHG Protocol Corporate Accounting and Reporting Standard’, Revised Edition, 2004.
For more information, visit: www.wbcsd.org/
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WEF
World Economic Forum - The WEF is comprised of political, business, cultural, and other leaders of society that are motivated to create a more sustainable and inclusive future. It is an impartial not-for-profit foundation headquartered in Geneva, Switzerland founded on the belief that progress happens when stakeholders of an issue collaborate to discuss, question, problem-solve, and creatively think about global, regional, and industry issues.
For more information, visit: www.weforum.org/
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WELL
International WELL Building Institute - WELL is a leading global rating system and the first to be focused exclusively on the ways that buildings, and everything in them, can improve our comfort, drive better choices, and generally enhance, not compromise, our health and wellness. The WELL Building Standard® is a performance-based system for measuring, certifying, and monitoring features of the built environment that impact human health and wellbeing, through air, water, nourishment, light, fitness, comfort, and mind. WELL is managed and administered by the International WELL Building Institute (IWBI), a public benefit corporation whose mission is to improve human health and wellbeing through the built environment. WELL is grounded in a body of medical research that explores the connection between the buildings where we spend more than 90 percent of our time, and the health and wellness of its occupants. WELL Certified™ spaces and WELL Compliant™ core and shell developments can help create a built environment that improves nutrition, fitness, mood, and sleep patterns. The WELL Building Standard® is third-party certified by the Green Business Certification Incorporation (GBCI), which administers the LEED certification program and the LEED professional credentialing program.
For more information, visit: www.wellcertified.com/about-iwbi
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WEP
Women's Empowerment Principles - WEP is a set of principles that offer guidance to businesses on how to promote gender equality and empowerment within the workforce.
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WEPS GAT Tool
Women's Empowerment Principles Gap Analysis Tool - WEPS GAT Tool assists companies to assess their approach to gender equality. The Tool helps identify their strengths, gaps, and even benchmark against peers and industry standards. The WEPS Tool includes 18 multiple-choice questions which cover topics ranging from equal pay to inclusive sourcing. The multiple-choice questions also include 17 optional indicators that help companies assess the effectiveness of their programs and policies.
For more information, visit: https://weps-gapanalysis.org/
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WRI
World Resources Institute - The WRI is a global research non-profit organization that was established in 1982 with funding from the MacArthur Foundation. The organization's mission is to promote environmental sustainability, economic opportunity, and human health and well-being. The WRI focuses on seven urgent global challenges that must be addressed to reduce poverty, grow economies and protect natural systems: Climate, Energy, Food, Forests, Water, Sustainable Cities, and the Ocean. Scope classifies whether GHG emissions are created by an organization itself, or are created by other related organizations, for example, electricity suppliers or logistics companies. There are three classifications of Scope: Scope 1, Scope 2, and Scope 3. The classification of Scope derives from the WRI and World Business Council for Sustainable Development (WBCSD), ‘GHG Protocol Corporate Accounting and Reporting Standard’, Revised Edition, 2004.
For more information, visit: www.wri.org/
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KERAMIDA provides Sustainability and Climate services for clients worldwide. KERAMIDA is a CDP Global Gold Verification Provider, CDP Silver Cities Consultancy Solutions Provider, and an Accredited ClimateView Partner. To speak with one of our knowledgable sustainability professionals, fill out our quick response form or call us at (800) 508-8034.
Authors
Becky Twohey, Ph.D.
Vice President
ESG Strategy, Planning and Reporting
KERAMIDA Inc.
Contact Becky at btwohey@keramida.com
Claudia Cozadd
Sustainability Analyst
Sustainability and Climate Services
KERAMIDA Inc.
Contact Claudia at ccozadd@keramida.com
