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.