Glossary
Sustainability
To put it simply, sustainability is fulfilling the needs of current
generations while not compromising the needs of future generations. This
includes, making sure that we balance between economic growth, which is a
must, but also taking care of the environment, as well as social wellbeing.
Carbon Footprint
Carbon footprint refers to the total amount of carbon emissions produced by
a company or individual. It's calculated by aggregating the amount of
emissions from operations over 12 months.
Net-zero emissions
Net-zero emissions is achieved by a company when the whole amount of
greenhouse gases (GHG) released and the amount removed from the atmosphere
are in balance.
Carbon Neutrality
Carbon Neutrality means that the amount of CO2 released into the atmosphere
from a company's activities is balanced by an equivalent amount being
removed. For a company to achieve carbon neutrality, it must achieve net
zero emissions of carbon dioxide into the atmosphere across its operations.
Circular Economy
The circular economy promotes resource proficiency by replacing a linear
"take, make, dispose of" model of production with one where materials can be
reused, recycled or repurposed at the end of each life cycle.
Diversity, Equity, and Inclusion
Diversity, Equity and Inclusion or DEI is a term used to describe policies
and programmes that promote the representation and participation of
different groups of individuals based on age, gender, religion, abilities,
skills, expertise and more.
Environmental
The environmental aspect of ESG focuses on how an organisation impacts and
protects the planet and its ecosystems, including policies relating to
carbon neutrality, responsible resource usage, water positivity and clean
air.
ESG
ESG stands for Environmental, Social and Governance (Stewardship). It is a
term used to measure how a business impacts the environment and society, as
well as how rigorous and transparent its governance is.
Greenhouse Gas Emissions
A greenhouse gas is an atmospheric gas, such as carbon dioxide, methane and
nitrous oxide, which absorb and emit radiation produced by solar warming of
the Earth's surface. Excess greenhouse gasses cause climate change by
trapping heat in the atmosphere – contributing to extreme weather, wildfires
and droughts.
Materiality Matrix
A materiality matrix is an assessment tool that helps companies to decide on
which ESG issues to focus their investments on. This involves surveying
stakeholders on ESG metrics to help rank them on importance and impact.
Metrics could highlight potential risks and opportunities.
Science Based Targets
Science-based targets are a list of aims established by a organisation to
provide it with a pathway to reduce its greenhouse gas emissions. Targets
are deemed to be 'science-based' if they are aligned with what the latest
scientific analysis states is necessary to meet the goals of the Paris
Agreement.
SDGs
The Sustainable Development Goals (SDGs), adopted by all UN member states in
2015, are a universal call to action to promote prosperity while protecting
the planet.
The agenda sets out 17 wide-ranging goals with 169 targets. They aim to
transform the world and call for action to end poverty and inequality,
protect the planet, and ensure that all people enjoy health, justice, and
prosperity.
Learn more here: UN 17 Goals – https://sdgs.un.org/es/goals
Social
Social in ESG covers all the ways companies interact with their employees
and the communities in which they operate, as well as DEI efforts, safety
and quality.
Governance
Governance in ESG refers to decision-making processes, as well as
businesses' ethical behaviour and transparency with stakeholders about its
activities.
This includes Corporate Governance, Risk Management, Compliance &
Ethics.
Sustainability Report
A sustainability report demonstrates the economic, environmental and social,
and governance performance of organisations. By publishing these reports,
businesses can show their commitment to sustainable development and allow it
to be verified by both internal and external stakeholders.
Vehicle-to-Grid
Vehicle-to-Grid (V2G) technology allows electricity to flow in both
directions to and from electric vehicle batteries, allowing the energy
stored in the battery to be sold back to the grid when the demand for power
is high. Vehicles can then charge when demand is lower or renewable
generation is high, giving V2G a role in carbon reduction efforts.