Activity-based carbon accounting quantifies caused emissions by multiplying the physical unit of an activity with the corresponding emission factor (e.g. liters of fuel burned). It is the most accurate carbon accounting method, as real physical values are used.

The EUDR regulates trade in raw materials that can cause deforestation.

The air quality index is an indicator of air quality and its effects on health.

The albedo effect refers to the reflectivity of a surface to solar radiation.

Biodegradable plastics decompose into natural substances through microorganisms.

CH₄, also known as methane, is a colorless, odorless gas considered one of the most significant greenhouse gases. It is primarily produced through natural processes and human activities, with a significantly higher global warming potential (GWP) than CO₂, despite its shorter atmospheric lifespan.

A CO₂ equivalent (CO₂e) is a unit of measurement that indicates the global warming potential (“GWP”) of various greenhouse gases, expressed as the GWP of one unit of carbon dioxide. It is used as a common basis for calculating emissions of various greenhouse gases.

CO₂-neutral describes the state in which an organization, product, or activity causes no net CO₂ emissions. This is achieved by minimizing emitted emissions through reduction measures and offsetting unavoidable emissions through compensation projects.

The Carbon Border Adjustment Mechanism (CBAM) is a tool introduced by the European Union to prevent "carbon leakage." It applies to imports of certain goods to ensure that imported products bear the same carbon costs as those produced within the EU. This aims to create fair competition and incentives for global decarbonization.

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Carbon Capture and Storage (CCS) is a technology that captures CO₂ emissions directly at the source before they are released into the atmosphere and safely stores them in geological formations. The goal is to reduce CO₂ emissions from industrial processes and energy production, contributing to the fight against climate change.

Carbon dioxide is a colorless and odorless gas and an important greenhouse gas.

The Carbon Disclosure Project (CDP) serves as a central point of contact for organizations, cities and investors to make their environmental impact transparent. More than 9,600 companies worldwide report their emissions and environmental strategies to CDP through a precise evaluation system that ranges from A to D-. These assessments, which cover key areas such as climate change, water management and forest protection, are a key indicator of corporate environmental responsibility. They help investors and consumers make more sustainable decisions and thus contribute to more sustainable global development.

Carbon accounting refers to the systematic measurement and monitoring of emissions of CO₂ and other greenhouse gases. It is used to prepare a CO₂ balance sheet that enables companies and other organizations to understand their impact on the climate. In contrast to sustainability accounting, carbon accounting only takes into account environmental effects, while sustainability accounting also takes social and government aspects into account.

Carbon compensation means offsetting emissions by reducing them elsewhere. Climate change mitigation projects, such as reforestation projects, generate a specific amount of CO₂ certificates based on the estimated amount of emissions reduced or saved as a result of this project. Other parties, such as governments or companies, can buy these CO₂ certificates to offset their emissions on the balance sheet. On an individual level, compensation can be made by agreeing to pay a certain amount in addition to a purchase, which is then used to finance such mitigation projects.

A transferable or tradable instrument that represents one metric tonne of CO2eq emission reduction or removal and is issued and verified according to recognised quality standards.

The carbon footprint measures the amount of carbon dioxide (CO₂) and other greenhouse gases released directly or indirectly through human activities such as energy consumption, transportation, or production. It serves as an indicator of climate change and is expressed in metric tons of CO₂ equivalents (CO₂e).

A carbon footprint calculator is a tool for converting activity data into its carbon equivalent by multiplying the value by the corresponding emission factor. The result is an estimate of the carbon emissions caused by a specific activity.

Carbon leakage describes a scenario in which companies may relocate production to countries that have less stringent emissions regulations due to climate policy costs, which can potentially result in an increase in overall emissions. This issue is particularly relevant in energy-intensive sectors, where the risk of carbon leakage is more pronounced.

The carbon tax (CO₂ tax) is a government-imposed levy on carbon dioxide (CO₂) emissions. Its goal is to create incentives to reduce greenhouse gas emissions and promote the transition to more climate-friendly technologies. By pricing CO₂ emissions, environmentally friendly behavior is financially rewarded, while climate-damaging actions become more expensive.

An economic system in which the value of products, materials and other resources in the economy is maintained for as long as possible, enhancing their efficient use in production and consumption, thereby reducing the environmental impact of their use, minimising waste and the release of hazardous substances at all stages of their life cycle, including through the application of the waste hierarchy.

The Clean Industrial Deal is an initiative by the European Commission aimed at strengthening the EU's industrial competitiveness while advancing decarbonization. By investing in clean technologies, reducing energy costs, and promoting the circular economy, the initiative seeks to make European industry more sustainable and future-proof.

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Section 401 of the Clean Water Act empowers states to review permits to protect water quality.

A Climate Transition Plan (CTP) is a strategic document that outlines in detail how a company adapts its business models, processes, and strategies to align with the goals of the Paris Climate Agreement. The primary focus is on limiting global warming to 1.5°C and achieving climate neutrality by 2050.

Climate change refers to the long-term alteration of Earth's climate, caused by natural processes and human activities, particularly the emission of greenhouse gases. It results in global temperature increases, changing weather patterns, and significant ecological, economic, and social impacts.

The process of reducing GHG emissions and holding the increase in the global average temperature to 1,5 °C above pre-industrial levels, in line with the Paris Agreement.

The capacity of an undertaking to adjust to climate changes, and to developments or uncertainties related to climate change. Climate resilience involves the capacity to manage climate-related Scope 1 and benefit from climate-related opportunities, including the ability to respond and adapt to transition risks and physical risks. An undertaking’s climate resilience includes both its strategic resilience and its operational resilience to climate-related changes, developments or uncertainties associated with climate change.

A climate risk analysis assesses the impact of climate-related risks, such as physical damage due to extreme weather events or regulatory changes, on companies. It serves as a basis for strategic decisions to minimize these risks and adapt to climate change.

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Climate risks arise from significant changes in the Earth's spheres and are a result of changes in the climate and environment caused by humans.

Potential positive effects related to climate change for the undertaking. Efforts to mitigate and adapt to climate change can produce opportunities for undertakings. Climate-related opportunities will vary depending on the region, market, and industry where an undertaking operates.

Risks resulting from climate change that can be event-driven (acute) or from longer-term shifts (chronic) in climate patterns. Acute physical risks arise from particular hazards, especially weather- related events such as storms, floods, fires or heatwaves. Chronic physical risks arise from longer-term changes in the climate, such as temperature changes, and their effects on rising sea levels, reduced water availability, biodiversity loss and changes in land and soil productivity.

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Risks that arise from the transition to a low-carbon and climate-resilient economy. They typically include policy risks, legal risks, technology risks, market risks and reputational risks.

The EUDR imposes strict evidence obligations on companies dealing with raw materials.

A corporate carbon footprint represents the emissions generated by all of the company's activities within the selected reporting period and operating limits. The resulting CO2 balance includes at least Scope 1 and Scope 2 emissions, preferably also Scope 3 emissions, as far as possible.

Corporate Social Responsibility (CSR) describes the advanced efforts of companies to act sustainably beyond pure economic goals. This includes conscious consideration of their social, social and ecological role and the influence of their actions. The aim of CSR is to make a positive contribution to social development and actively reduce negative effects on the environment and society.

The Corporate Sustainability Due Diligence Directive (CSDDD) is a groundbreaking European Union directive designed to enhance environmental and human rights protections both within the EU and worldwide. It mandates companies to address existing and potential negative impacts on human rights and the environment, covering their own operations, subsidiaries, and especially their supply chains. The CSDDD is a cornerstone of the EU's strategy to promote sustainable business practices and ensure responsible corporate governance on a global scale.

The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that requires companies to produce comprehensive sustainability reports. These reports cover environmental, social, and governance (ESG) aspects and will apply to a wide range of medium-sized companies starting in 2025.

Cradle-to-Gate examines the environmental impacts of a product from raw material extraction to production.

EUDR deadlines for companies: December 30, 2025, and June 30, 2026.

Decarbonization levers refer to measures and strategies that enable companies to reduce their CO₂ emissions. They include technological, organizational, and process-based approaches that help accelerate the transition to a lower-carbon economy.

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Decarbonization is the process of minimizing greenhouse gas emissions, in particular CO₂, and aims to make global economic and social systems climate-neutral by the middle of the century. Supported by the Paris Climate Agreement, states and companies worldwide are committed to urgent and long-term measures against climate change in order to achieve sustainable climate neutrality.

Definition of deforestation-free supply chains in sustainable agriculture.

The EUDR and EUTR regulate timber trade and forest protection in the EU.

The Digital Product Passport is a digital document for product information about the lifecycle.

Direct greenhouse gas emissions, also known as “Scope 1 emissions,” refer to all emissions that come from sources that can be attributed directly to a company. Examples include emissions from the combustion of heating oil at a company's sites or the combustion of fuel for a company's vehicle fleet.

Obligations for companies to comply with the EU Deforestation Regulation EUDR.

Double materiality has two dimensions: impact materiality and financial materiality. A sustainability matter meets the criterion of double materiality if it is material from the impact perspective or the financial perspective or both.

Downstream emissions are indirect greenhouse gas emissions that are recorded as part of Scope 3 of the Greenhouse Gas Protocol. They result from the use, disposal, or processing of a company's products and services after they leave the company's direct control.

"Drill, baby, drill" is a motto that shapes American policy on oil and gas production.

The due diligence statement is a legally binding declaration for companies under the EUDR.

EFRAG is a non-profit organization promoting corporate reporting in Europe.

EMAS (Eco-Management and Audit Scheme) is a voluntary EU environmental management and audit system that helps companies continuously, transparently, and credibly improve their environmental performance.

The disclosure of environmental, social and governance data, known as ESG reporting, aims to make a company's activities in these areas transparent. This not only increases clarity for investors, but also motivates other organizations to take similar measures.

The Energy Savings Opportunity Scheme requires companies to conduct energy audits to identify savings potential.

The EU Commission's benchmarking system evaluates deforestation risks for seven regulated commodities.

The Emissions Trading System (ETS) is a market-based tool for reducing greenhouse gases that allows emissions rights to be traded. In the EU Emissions Trading System (EU ETS), companies from industry and aviation receive emission certificates that determine their permitted emissions. These certificates can be traded to create incentives for emissions reductions. If companies exceed their emission limits, they must pay fines or purchase additional certificates. The EU ETS plays a key role in the EU climate strategy and promotes investments in green technologies.

The EU taxonomy, a core part of the European Green Deal, classifies sustainable activities to steer investments into green innovations. It supports the EU goals for climate neutrality by 2050 and the significant reduction of emissions by 2030 by providing guidelines for sustainable investments. Activities must contribute to one of six environmental goals without causing significant damage, in accordance with the “Do No Significant Harm” principle, and comply with social standards. The goals focus on climate protection, adaptation, water use, circular economy, prevention of pollution and biodiversity.

The EU Deforestation Regulation (EUDR) is European legislation that aims to reduce deforestation and forest damage by regulating the import of products associated with deforestation.

The EUDR Due Diligence Statement is a compliance instrument to ensure deforestation-free products.

EUDR software helps companies comply with EU deforestation requirements.

EUDR-compliant supply chain transparency ensures the traceability of raw materials and products according to EU regulations.

Earth Overshoot Day marks the point in the year when humanity has consumed all the natural resources that the Earth can regenerate within that year. From this day onward, our resource consumption exceeds the planet’s ecological capacity.

EcoVadis is a global provider of sustainability ratings, analyzing companies’ environmental, social, and governance (ESG) performance. These assessments help businesses enhance their sustainability practices and communicate transparently with stakeholders.

The ecological footprint measures the consumption of resources and waste production per person.

The point at which a relatively small change in external conditions causes a rapid  change  in  an  ecosystem.  When  an  ecological  threshold  has  been passed, the ecosystem may no longer be able to return to its state by means of its inherent resilience.

A dynamic complex of plant, animal and micro-organism communities and their non-living environment interacting as a functional unit. A typology of ecosystems is provided by the IUCN Global Ecosystem Typology 2.0.

Embodied Greenhouse Gas Emissions (also known as Embodied Carbon Emissions) refer to the CO₂ emissions generated throughout the entire lifecycle of a product or material – from raw material extraction and production to recycling or disposal. They play a crucial role in corporate carbon accounting, particularly in Product Carbon Footprint (PCF) analysis.

Emission factors are used to estimate the amount of CO₂ emitted by an activity. These values can be found in various databases provided by governments such as DBEIS, ProBAS and EPA or by private providers such as ecoinvent.

The Emissions Trading System (ETS) reduces greenhouse gas emissions through market-based approaches.

An energy audit is a systematic inspection and analysis of the energy consumption of a building or industrial facility. The goal is to identify energy-saving potential, optimize energy consumption, and highlight opportunities to improve energy efficiency.

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Environmentally friendly buildings are sustainable constructions that minimize environmental impact and promote user health.

An Environmental Product Declaration (EPD) is a standardized environmental product declaration that provides quantified and verified information on a product’s environmental impact throughout its entire lifecycle. It enables the comparison of products with the same function in terms of their ecological performance.

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The European Green Deal is a set of policy initiatives proposed by the European Commission in 2019. It supports the EU's transformation towards a green, fair and prosperous economy in a modern and competitive society. The overall goal of the European Green Deal is to achieve the EU's climate neutrality by 2050.

The European Sustainability Reporting Standards (ESRS) provide a standardized framework for companies to disclose environmental, social and governance (ESG) aspects. Developed by the European Financial Reporting Advisory Group (EFRAG), these 12 standards are mandatory for companies subject to the Corporate Sustainability Reporting Directive (CSRD). They define the core information to be published about the sustainability-related effects, risks and opportunities of a company.

Effects from risks and opportunities that affect the undertaking’s financial position, financial performance and cash flows over the short, medium or long term.

A sustainability matter is material from a financial perspective if it generates risks or opportunities that affect (or could reasonably be expected to affect) the undertaking’s financial position, financial performance, cash flows, access to finance or cost of capital over the short, medium or long term.

Fit for 55 is a EU legislative package aimed at reducing greenhouse gas emissions by 55% by 2030.

Fossil fuels are energy carriers derived from dead organic matter that has been transmuted over millions of years.

The Darvaza Gas Crater is a burning natural phenomenon in Turkmenistan.

Geolocation obligations ensure the traceability of raw materials in trade.

The Global Reporting Initiative (GRI) is an international organization that provides the world's most commonly used standard for sustainability reporting. The GRI was founded in 1997 with the aim of creating a mechanism for accountability for responsible environmental behavior by companies. In 2016, the GRI published its first global standards for sustainability reporting, which enable companies and other organizations to report on their impact on environmental, social, and government matters.

The Global Warming Potential (GWP) is a metric used to assess the climate impact of greenhouse gases. It measures how much heat a specific gas retains in the atmosphere over a defined period, compared to the same amount of carbon dioxide (CO₂), which serves as the reference with a GWP value of 1.

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The Great Green Wall is an initiative to combat desertification in Africa.

The Great Smog of London in 1952 was a severe air pollution event that claimed many lives.

Green information technology refers to environmentally conscious practices in IT.

Green Living is a lifestyle aimed at reducing the ecological footprint through sustainable choices.

Green Teaming refers to the formation of groups to promote sustainable practices within organizations.

Green electricity refers to electricity generated from renewable energy sources such as wind, solar, hydropower, geothermal, or biomass. It is an eco-friendly alternative to fossil fuels, helping to reduce CO₂ emissions and achieve climate goals.

The Greenhouse Gas Protocol (GHG Protocol) is an internationally recognized framework for measuring and managing greenhouse gas emissions. It was developed at the end of the 1990s by the World Resource Institute (WRI) and the World Business Council for Sustainable Development (BWCSD) out of the need for an international standard for accounting and reporting greenhouse gas emissions in companies. The following two standards are relevant for corporate carbon accounting:

The Corporate Accounting and Reporting Standard contains requirements and guidelines for preparing a greenhouse gas inventory for companies and other organizations.

The Corporate value chain standard concentrated Focus on Scope 3 emissions and helps companies record emissions from their entire value chain. It is the most commonly used global standard for corporate greenhouse gas accounting.

A greenhouse gas (GHG) is a gaseous substance such as carbon dioxide (CO₂), methane (CH₄), or nitrous oxide (N₂O) that traps heat in the atmosphere, thereby enhancing the natural greenhouse effect. This contributes to global warming and impacts the Earth's climate.

Greenwashing refers to the practice of portraying companies or products as more environmentally friendly than they actually are. It involves misleading communication that emphasizes sustainability without implementing or verifying the claimed measures.

ISO 14001 is an internationally recognized standard for Environmental Management Systems (EMS), providing organizations with a structured framework to continuously improve their environmental performance and systematically meet environmental obligations.

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ISO 14064 defines global standards for greenhouse gas reporting at company level. It consists of parts ISO 14064-1, -2 and -3, with ISO 14064-1 focusing specifically on the quantification and reporting of greenhouse gas emissions.

ISO 14067 is an international standard that sets the requirements for calculating and reporting the Product Carbon Footprint (PCF). It is based on Life Cycle Assessment (LCA) and aims to quantify the greenhouse gas emissions of products throughout their entire lifecycle, from raw material extraction to disposal.

ISO 50001 is an international standard for energy management systems (EnMS), designed to help companies systematically improve their energy performance. The goal is to optimize energy use, lower costs, and reduce environmental impact.

ISO 9001 is the world’s leading standard for Quality Management Systems (QMS), providing companies with a systematic foundation to consistently deliver high-quality products and services and to continuously improve their processes.

The International Sustainability Standards Board (ISSB) is an organization that develops global standards for sustainability reporting. Its goal is to provide companies with clear, comparable, and consistent guidelines for disclosing sustainability data, enabling investors and other stakeholders to make informed decisions.

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A  sustainability  matter  is  material  from  an  impact  perspective  when  it pertains  to  the  undertaking’s  material  actual  or  potential,  positive  or negative impacts on people or the environment over the short-, medium- and long-term. A material sustainability matter from an impact perspective includes  impacts  connected  with  the  undertaking’s  own  operations  and upstream and downstream value chain, including through its products and services, as well as through its business relationships.

GHG emissions that are a consequence of the activities of an entity but occur at sources owned or controlled by another entity. Indirect emissions are Scope 2 GHG emissions and scope 3 GHG emissions combined.

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Indirect emissions are greenhouse gas emissions caused by a company's activities but do not originate directly from its own sources. They primarily include emissions from purchased energy (Scope 2) and emissions across the entire value chain (Scope 3).

The Intergovernmental Panel on Climate Change (IPCC) is an international body of climate scientists who study the scientific, technical, and socio-economic information relevant to understanding the risks of human-caused climate change.