Sustainability Glossary

Renewable energy sources are sources of energy that can be replenished naturally, such as solar, wind, and hydroelectricity. 100% renewable energy means that all of the electricity used by an organisation or country is generated from renewable energy sources.

The amount of additional value or outcome that has been contributed by an intervention, above and beyond what would have happened anyway. A synonym for impact.

Adverse Climate Outcome (ACO) & Adverse Social Outcome (ASO)

An adverse climate outcome is a negative impact on the environment caused by climate change, such as sea level rise or extreme weather events. An adverse social outcome is a negative impact on society caused by climate change, such as forced displacement, increased poverty and inequality and resulting conflict.

Source: National Oceanic and Atmospheric Administration

Air quality is the condition of the air in terms of its cleanliness and the presence of pollutants. Good air quality means that the air is clean and free of pollutants.

An Air Quality Index (AQI) communicates how contaminated the air of a specific area or country is or how polluted it is expected to be. It is calculated as a combination of various types of pollution. Different nations have their own AQIs corresponding to other air quality standards.

Source: National Oceanic and Atmospheric Administration's National Weather Service

Air pollution is the contamination of the environment by any physical, chemical, or biological agent that changes the natural characteristics of the atmosphere. Air pollution, and its impact on air quality, are closely linked to our climate and ecosystems. Many drivers of air pollution, such as burning fossil fuels, are also sources of carbon emissions.

Source: World Health Organisation

The underlying beliefs about how an intervention will create your intended change. This includes beliefs on: the causal relationship between activities and outcomes; the build-up of outcomes; and the influence of the context and external factors.

The atmosphere is the layer of gases that envelopes a planet. Surprisingly, oxygen isn't the most abundant gas in our planet's atmosphere. The atmosphere of Earth is composed of nitrogen (78.1%), oxygen (20.9%), argon (0.93%), carbon dioxide (0.04%), and trace gases (such as neon, helium, methane, and krypton).

Source:EarthHow

The portion of any outcomes that can be claimed by your intervention. It is the slice of the pie, normally expressed as a percentage that was driven by your work relative to other influences such as other services. In organisations engaged in direct delivery, determining the level of attribution for outcomes can be relatively straightforward by engaging with beneficiaries and wider stakeholders. It becomes more complex when organisations work in partnership with others.

The period of time between which outcomes begin and end. This is distinct from the intervention period which may be shorter and the benefits may persist long after the activity is complete. Impact modelling calculates total value based on the length of time that benefits last.

Beyond value chain mitigation (BVCM) are measures taken to avoid (prevent), reduce or eliminate greenhouse gas emissions outside of their value chain. Both compensation and neutralisation can be considered BVCM, and should always come as an addition to decarbonisation, rather than its substitute.

Biodiversity is the variety of life on Earth, from genes to ecosystems, and its consequent loss is the decline in the variety of life on Earth, such as the extinction of species, the degradation of ecosystems and the decline of populations of plants and animals.

Biofuels are fuels derived from biological sources. These include but are not limited to crops, new and used vegetable oils, animal fats, and various forms of waste. Biofuels can complement or replace traditional fossil fuels, although different biofuels' greenhouse gas mitigation potential may vary considerably.

Source: Office of Energy Efficiency and Renewable Energy

According to the European Union's Renewable Energy Directive, biomass is the biodegradable part of waste, products, and residues from different industries such as agriculture, forestry, fisheries, and aquaculture. Biomass can be converted into electricity, burned to create heat, or processed into biofuels. Since biomass is a fuel type, some people use the terms biomass and biofuel interchangeably. Biomass is a renewable organic material. Plant-, wood-, and other bio-waste are the most common types of biomass used for energy. Biomass is a solid material which can be converted to biogas (main methane) with the use of microorganisms in the absence of oxygen (a.k.a. Anaerobic Digestion).

Source: European Union

Blue carbon is simply the term for carbon captured by the world's ocean and coastal ecosystems. Sea grasses, mangroves, and salt marshes along our coast "capture and hold" carbon, acting as something called a carbon sink. These coastal systems, though much smaller in size than the planet's forests, sequester this carbon at a much faster rate, and can continue to do so for millions of years.

Carbon accounting, or "greenhouse gas accounting", refers to the systematic methodologies, measurement, and monitoring used to evaluate and quantify how much carbon dioxide equivalents (CO2e) an entity or activity emits. Carbon accounting measures emissions of all greenhouse gases and includes CO2, methane, nitrous oxide, and fluorinated gases. Gases other than carbon are expressed in terms of carbon equivalents.

Source: Greenhouse Gas Balances of Bioenergy Systems

The Carbon Border Adjustment Mechanism (CBAM) is a system that places a carbon price on imports of products from countries with less ambitious national policies around climate change. The system is designed to prevent the risk of carbon leakage and was proposed by the European Commission in 2021. It is currently being legislated as part of the European Green Deal and is expected to take effect in 2026, with reporting starting in 2023.

Source: European Commission

The carbon budget is the amount of greenhouse gases that humanity can emit into the atmosphere by the end of this century and still limit the global temperature increase compared to the pre-industrial levels (1850-1900). According to the IPCC, the atmosphere can absorb, calculated from the beginning of 2020, no more than 400 gigatonnes (Gt) of CO2 if we are to stay below the 1.5°C thresholds. Annual emissions of CO2 – from burning fossil fuels, industrial processes and land-use change – are estimated to be 42.2 Gt per year, the equivalent of 1,337 tonnes per second. At current emissions rates, the budget for staying below the 2°C thresholds would be exhausted in about 25 years. The concept of the carbon budget is based on an almost linear relationship between cumulative emissions and temperature rise. Nevertheless, this does not mean that the Earth would be 1.5⁰C warmer precisely when the remaining carbon budget for staying below the 1.5⁰C threshold is exhausted.

Source: MCC Berlin

Carbon capture is the process of capturing carbon dioxide from chemical or biomass power plants and storing it underground to prevent the release of carbon dioxide. Carbon capture technologies range from forestry to air-filtering machinery capable of capturing airborne CO2. Innovative compensation efforts often include carbon capture and storage mechanisms.

Source: Plan A

The carbon credit system provides an incentive to reduce the emissions of one's own company. First, a company sets an emission cap, which is then reduced periodically. If a company exceeds this limit, it will receive a fine. Unused certificates can be sold to other companies. The certificates provide a market-oriented mechanism for reducing greenhouse gas emissions. The number of overall available credits is reduced over time to reduce global greenhouse gases.

Source: Plan A

Carbon dioxide (or CO2) is a colourless, odourless gas consisting of one part carbon and two parts oxygen. CO2 is a natural component of our planet's atmosphere and is one of the most common greenhouse gases. It is released through human activities such as burning fossil fuels and deforestation, but also by natural processes. Because humanity releases more carbon dioxide –primarily through burning fossil fuels like coal and oil– into the atmosphere than current biological processes can remove, the amount and concentration of carbon dioxide in the atmosphere and ocean increases yearly. There are other greenhouse gases beyond carbon dioxide, such as methane (CH4), nitrous oxide (N2O), or fluorinated gases (F-gases).

Source: University Corporation for Atmospheric Research

Carbon dioxide equivalent (CO2e) is a single unit metric used to harmonise emissions from many different greenhouse gases based on their Global Warming Potential (GWP). In greenhouse gas accounting, CO2e is more accurate than CO2 alone because it covers the GWPs of all greenhouse gases that capture heat and warm our planet's atmosphere. For example, in a 100-year-period, methane traps 28 times more heat than CO2, giving it a GWP of 28 CO2e.

Source: Eurostat

Carbon emissions –also known as greenhouse gas emissions– release carbon into the atmosphere. Carbon dioxide is the primary greenhouse gas emitted through human activities.

A carbon footprint is the total amount of carbon dioxide released into the atmosphere due to the activities of an individual, project, organisation, or nation-state. The carbon footprint serves as an indicator to compare the total amount of greenhouse gases emitted from an activity, product, company or country. Carbon footprints are usually reported in tons of emissions per unit of comparison; such as per year, person, kg protein, km travelled and alike.

Guidelines for measuring and reporting carbon footprints. There are a number of different carbon footprint standards, such as the:

• Greenhouse Gas Protocol (GHG Protocol), a widely used framework for measuring and reporting greenhouse gas emissions, which defines the three scopes of emissions: Scope 1, Scope 2, and Scope 3;

• PAS 2050, which is a British standard for measuring and reporting carbon footprints. It is similar to the GHG Protocol, but it has a stronger focus on life cycle assessment.

• ISO 14064, an international standard for greenhouse gas accounting and verification, is more detailed than the GHG Protocol or PAS 2050, and it is often used for certification purposes.

• Science-Based Targets Initiative (SBTi), is a non-profit organisation that helps companies set science-based emissions reduction targets, based on the latest climate science, and they are designed to help organisations avoid the worst impacts of climate change.

The process of reducing greenhouse gas emissions by investing in projects that protect or restore forests or other natural carbon sinks.

Carbon leakage refers to a company relocating its activities to countries with weaker carbon and sustainability legislation. This relocation can cause the company's carbon footprint to rise due to a more extensive licence to pollute and the environmental costs of transportation. In addition, relocating to less regulated countries often results in inaccurate carbon measurement and skews the carbon emissions mapping and attribution. The risk of carbon leakage may be higher in energy-intensive industries.

A carbon market is a voluntary or legally operated system to enable the trade of carbon credits between private and public entities. The first carbon market was defined by the Kyoto Protocol which created three market mechanisms to achieve these emissions reductions: the International Emissions Trading (IET), the Joint Implementation, and the Clean Development Mechanism (see Clean Development Mechanism). The goal of a carbon market is to create an economic incentive for companies to reduce their emissions, as they can sell any unused emissions allowances to other companies that need them. Carbon markets can take many forms, such as cap-and-trade systems or carbon taxes, but the basic principle is the same: to use the power of the market to reduce greenhouse gas emissions and mitigate the effects of climate change.The carbon market's goal is to create a carbon price and transform carbon into a valuable commodity, incentivising emitters to use this resource cautiously and even as a revenue generating activity in some cases.

Source: UNFCCC

Carbon negative is achieved when an organisation's activities go beyond achieving net-zero carbon emissions to create an environmental benefit by removing additional carbon dioxide from the atmosphere.

The date by which an organisation or country aims to achieve net-zero emissions.

Carbon neutrality means that any CO2 released into the atmosphere from a company's activities are balanced by the equivalent amount being compensated or removed. Companies can achieve carbon neutrality by buying carbon credits to offset their emissions. Plan A aims to take companies to net-zero rather than carbon neutrality as it embeds the notion of decarbonisation into the process.

Carbon positive, or climate positive, is a term often used by companies to announce that they have moved beyond carbon neutrality by reducing/removing more greenhouse gas emissions than they are generating.

A Carbon ReductionPlan (CRP) identifies a supplier's current carbon footprint and their plan to achieve net zero emissions. In the United Kingdom, CRPs must be provided by suppliers when responding to in-scope procurements as defined by PPN 06/21 (e.g. contracts over £5 millions). The CRP is not intended to replace existing reporting or calculation of your organisational carbon footprint. It is a summary document that details high level information that demonstrates your compliance with the measure. CRPs are to be completed on behalf of the bidding supplier and must meet the reporting requirements set out by the UK Government, and include the supplier’s current carbon footprint and its commitment to reducing emissions to achieve Net Zero emissions by 2050. CRPs are intended to help suppliers and customers understand the impact the contract and therefore their wider operations have upon the environment. They detail the organisation's emissions across a single year against a range of emissions sources and greenhouse gasses.

Source: UK Cabinet Office

The process of measuring, tracking, and reporting greenhouse gas emissions. Carbon reporting is important for organisations to understand their emissions and to track their progress towards their emissions reduction goals.

A member of the executive leadership team, sitting at the C-level of an organisation such as a not-for-profit or business, responsible for the overall direction of its impact work. CIOs can be accountable for developing the impact strategy and framework against which progress towards societal and environmental goals can be measured.

An economic model that aims to supplant the linear economic model by decoupling emissions from economic growth. Recycling, reusing, making better use of resources to keep materials in use rather than throwing them away and eliminating the vast amounts of waste created by the linear economic model are key elements of the approach.

The Clean Development Mechanism (CDM) is a UN initiative that allows emission reduction projects in developing countries to earn certified emission reduction (CER) credits. Each of these credits is equivalent to one tonne of CO2e. These certified emission reduction credits can be traded, bought, and sold. Industrialised countries use them to help meet their emission compensation targets under the Kyoto Protocol.

Source: UNFCC

Any technological product, process or service that reduces or eliminates environmental pollution or resource consumption. This can include technologies from renewable energy sources, such as wind, hydroelectric or solar power, as well as methods to increase efficiency in existing systems, such as water conservation technologies.

Climate describes the average weather in a specific geographical region over a period of time. This period, the so-called standard period, generally lasts for 30 years. If the statistical mean values for temperature, wind, or rain change over a more extended period (decades or longer), it demonstrates climate change.

Source: Climateurope

According to the United Nations, climate change refers to the shifts in temperature and weather patterns over an extended period. Some of these shifts may be natural, although, since 1800, human activities have been the main driver of climate change – primarily through burning fossil fuels such as coal, oil, and gas, which adds greenhouse gases to the atmosphere and oceans above what a natural cycle can cope with. This, in turn, causes shifts and accelerated changes in the local and global climates.As emissions continue to rise, our planet is now 1.1°C warmer than it was in the late 1800s on average. Although climate change is equated to warmer temperatures, its consequences go beyond temperatures. Examples of climate change effects are intense droughts, water scarcity, severe fires, flooding, storms, and a decline in biodiversity.

Source: United Nations

Actions taken to reduce the vulnerability of people and systems to the impacts of climate change. Climate change adaptation measures can include building seawalls to protect coastal communities from flooding, developing drought-resistant crops, and improving early warning systems for extreme weather events.

A specific occurrence of weather or climate conditions that is outside the historical norm. Climate change events can be caused by natural factors, such as volcanic eruptions, or by human activities, such as climate change.

Actions taken to reduce greenhouse gas emissions and limit the impacts of climate change. Climate change mitigation measures can include switching to renewable energy sources, improving energy efficiency, and planting trees.

Impact initiatives that involve multiple actors co-operating to achieve a common agenda, undertaking mutually reinforcing activities, tracking progress using shared measurement, continuously communicating with a dedicated backbone co-ordinating group.

Compensation, also known as (carbon) offsetting, is the voluntary or mandatory purchase of carbon credits to balance the emissions caused by an entity. The price for a carbon credit used for compensation is the benchmark when comparing an investment for direct internal reductions. Some greenhouse gas emissions are impossible to avoid, and compensation through carbon credits helps to achieve climate neutrality and net-zero objectives. Compensation includes investments in renewables, energy efficiency, reforestation, carbon capture, and other highly quantifiable carbon mitigation activities.

Land that is protected from development or other activities. Conservation land can help to protect biodiversity and natural resources.

Corporate Carbon Footprint (CCF) represents a reporting company's direct and indirect carbon dioxide equivalent emissions within a defined time period (usually a single year). Plan A's carbon accounting methodology for calculating a company's CCF is based on the GHG Protocol Corporate Standard and has been certified by TÜV Rheinland.

Source: Certipedia

Citizens and professionals sharing power to design, deliver and evaluate better social services. In this approach service users and wider stakeholders are seen as assets and their capabilities are used to embed the service into a community.

At the beginning of 2022, The European Commission proposed a directive on Corporate Sustainability Due Diligence. It aims to foster "sustainable and responsible corporate behaviour and to anchor human rights and environmental considerations in companies' operations and corporate governance". Benefits of the new rules – which are categorised by benefits for citizens, benefits for companies and benefits for developing countries – are far-reaching. A few examples include:

• Better protection for human rights.

• Improved access to justice for victims.

• A harmonised legal framework for companies in the European Union.

• Better access to finance.

• Improved living conditions.

Source:European Union

The Corporate Sustainability Reporting Directive (CSRD) is an EU legislation requiring all large companies (any two above 250 employees, turnover above €40M or €20M in assets) to publish regular reports on their environmental and social impact activities. The policy helps investors, consumers, policymakers, and other stakeholders evaluate large companies' non-financial performance. The first companies will have to start reporting in 2025 for the financial year 2024.

The level of outcome that would have occurred without an intervention: what would have happened anyway? Deadweight can be a deduction from your measured outcomes (removing a slice of the outcome pie) or if your initiative prevented a harm, it can be an addition to your measured outcome level. Deadweight is normally represented as a percentage.

Decarbonisation is the removal or reduction of all human-made carbon emissions into the atmosphere. Decarbonisation is achieved through cross-cutting measures to reduce or eliminate carbon emissions from an organisation's or individual's activities. Decarbonisation differs from climate neutrality because it seeks to reduce absolute carbon emissions and intensity. Climate neutrality does not necessarily include decarbonisation actions, as climate neutrality can achieve through solely buying carbon credits.

The amount of carbon dioxide that a woodland can store. Declared carbon capacity can be used to calculate the carbon offset value of a woodland.

Development impact bonds (DIBs) are a type of social outcomes contract common in low- and middle-income countries, in which investors advance fund development programmes with returns linked to specific development goals. The outcomes payer in a DIB is not a government, but usually a philanthropic organisation.

Direct (greenhouse gas) emissions are produced from sources owned, produced, and controlled by a company. They are referred to as "Scope 1 emissions" in the context of the Greenhouse Gas Protocol. The difference between direct and indirect emissions is that indirect (greenhouse gas) emissions are a consequence of the activities of the reporting organisation but are controlled or produced by another company, for instance, a cloud storage provider or a taxi ride.

Source: GHG

An assessment of how much of the change is a net benefit (i.e. a new change) rather than simply the movement of outcome within a system. For example, a reduction program may reduce drug dealing in one part of town, but a neighbouring authority may see an increase in drug dealing offenses as the crime has migrated elsewhere. Displacement is normally limited to like-for-like outcomes within a clearly defined system. A related concept, substitution, is sometimes used to refer to a social value in one place having a different knock-on social harm in another place, for example, greater privacy could lead to more social isolation.

The concept of “double materiality” refers to how information disclosed by a company can be material both in terms of its implications for the company’s financial value, as well as the company’s impact on the world at large. This relates to climate change and other environmental impacts, as well as social and human capital issues. Double materiality is based on a recognition that a company’s impact on the world beyond purely financial considerations can be material and therefore should be disclosed, for reasons other than the effect on a company’s bottom line. The concept of double materiality has been incorporated into the EU regulatory framework relating to sustainability reporting, which applies to financial institutions and companies operating across the European economy.

Over time, the influence that your completed intervention will have on the presence of an outcome will diminish. For example, a training program may generate skills (outcome) which persist after the completion of the program. However the level of the outcome will diminish (people forget), and/or the influence of your program on the outcome level will diminish (relative to other influences like on-the-job experience). Drop-off is used to account for this when calculating the total value created over the full benefit period (see above). A fixed percentage is normally deducted from each year of outcome value.

The process of converting from fossil fuels to electricity to power vehicles, homes, and businesses. Electrification can help to reduce greenhouse gas emissions.

The carbon dioxide emissions that are generated during the production, transportation, and construction of a product or building. Embodied carbon can be a significant part of the total carbon footprint of a product or building.

Emissions (to air) are defined as all of the gases and substances released into the atmosphere. Since the industrialisation era, human activities have significantly altered the chemical composition of our atmosphere through the release of substances and greenhouse gases.

Source: United States Environmental Protection Agency

Emissions trading, also known as cap-and-trade, is a market-based system for reducing greenhouse gas emissions. Under an emissions trading system, a government sets a limit or "cap" on the total amount of emissions that can be produced by a particular sector or region. This cap is then divided into a certain number of allowances, each of which represents the right to emit a certain amount of greenhouse gases. These allowances can be bought and sold on a market, allowing companies that can reduce their emissions at a lower cost to sell their excess allowances to companies that find it more expensive to reduce their emissions. The goal of emissions trading is to create an economic incentive for companies to reduce their emissions, as they can sell any unused emissions allowances to other companies that need them. This allows for the most cost-effective emissions reductions to take place, as companies will naturally reduce their emissions where it is cheapest to do so. Emissions trading systems can be used to regulate emissions from specific sectors, such as power plants or factories, or from an entire country or region.

Source: European Union

Conditions or factors which either help (enablers) or hinder (preventers) you from achieving your Theory of Change (impact aims). These factors can exist at any scale from individuals like family members to whole systems like the job market. Enablers and preventers are external to your intervention and are therefore outside your control.

The reduction in energy consumption. Energy saving can help to reduce greenhouse gas emissions and improve energy security.

The impact of an organisation or activity on the environment. Environmental performance can be measured in a number of ways, such as greenhouse gas emissions, water use, and waste production.

A period of time during which an employee works on environmental or climate change projects. Environmental work and climate sabbatical work can help to reduce greenhouse gas emissions and promote sustainability.

ESG is an acronym that stands for Environmental, Social, and Governance. It is a framework used to measure a business's non-financial performance in environmental, social and governance categories. It is used as a basis for various regulations such as the NFRD, CSRD and the SFDR. The growing interest in measuring and ranking ESG by investors and businesses reflects the perspective that environmental, social, and governance dimensions should be factored in when considering business success.

• Environmental factors include company policies around climate change, such as their decarbonisation action, natural resources, pollution and waste, and other factors.

• Social criteria include human rights, labour standards across the supply chain, integration to local communities, and other social dimensions.

• Governance includes business ethics, compliance, accurate accounting methods, salaries, structure for shareholders, and whether or not a company pursues integrity and diversity when selecting its leadership.

Climate change events that occur within a single country or region (Epi-Terra) or across multiple countries or regions (Pan-Terra).

An assessment of the efficiency and effectiveness of an intervention. Evaluations typically involve a review of the process and the impact. Process evaluation review whether the delivery of activities has been done to the extent and quality that was intended. Impact evaluations review the achievement and level of outcomes created and the role of the intervention in causing those outcomes.

The EU Taxonomy is a classification that sets criteria to determine whether an economic activity significantly contributes to the six environmental objectives as defined in the regulation:

• Climate change mitigation

• Climate change adaptation

• The sustainable use and protection of water and marine resources

• The transition to a circular economy

• Pollution prevention and control

• The protection and restoration of biodiversity and ecosystems

The objective of this regulation is to provide a common framework to assess the sustainability of economic activities. As such, large companies and financial market participants are now required to disclose the environmental impact of their capital spending against these pillars to allow consumers and government to integrate non-financial performance into their buying decisions.

Source: European Union

Fossil fuels are materials formed naturally in the Earth's crust from the remains of dead plants and animals over millennia. They are extracted and used chiefly for fueling purposes. According to the United Nations, over 80% of the CO2 generated by humans comes from burning fossil fuels. Their extraction, combustion and consequent emissions-to-air negatively affect the carbon cycle, which in balanced states allows for climate stability and a functioning biosphere. Fossil fuels include but are not limited to petroleum, coal, and natural gas.

Source: ScienceDaily

In earth science, the global surface temperature is calculated by averaging the temperature at the surface of the sea and air temperature over land. In technical writing, scientists call long-term changes in GST global cooling or global warming. Periods of both have happened regularly throughout earth's history. The global average temperature has warmed by 1.09°C (range: 0.95 to 1.20°C) from 1850–1900 to 2011–2020.

Source: Science Direct

All greenhouse gases have different chemical compositions and properties, leading to different strengths and timescales contributing to the greenhouse effect.The Global Warming Potential (GWP) index is used to measure the relative warming effects of these gases, using CO2 as the baseline. To calculate the relative impact of these gases, the Global Warming Potential (GWP) index is used, using CO2 as the baseline and harmonising all gases as carbon dioxide equivalents. Due to the different lifetime effects of other gases (e.g. methane dissipates more quickly than carbon dioxide), choosing the appropriate time horizon is crucial. As recommended by the Intergovernmental Panel on Climate Change (IPCC), the time horizon of 100 years is used across the Plan A software

Global warming is the long-term heating of Earth's surface observed since the pre-industrial period (between 1850 and 1900) due to human activities, primarily fossil fuel burning, which increases heat-trapping greenhouse gas levels in the Earth's atmosphere. Climate change includes both warming and side effects of warming, such as melting glaciers and more frequent droughts.

Green bonds are issued to raise financing for sustainability or climate related investments. These bonds are similar to traditional bonds in that they pay interest to investors, but the proceeds from the sale of green bonds are specifically earmarked for projects that have a positive environmental impact. Green bonds are typically issued with the same credit rating as the issuer's traditional bonds, and the maturity, coupon, and other terms are similar to those of other bonds. However, they may have additional features, such as a use of proceeds, to ensure that the funds are used for a specific environmental project. Green bonds are also subject to independent review and certification to ensure that the proceeds are being used for eligible green projects.The demand for green bonds has been growing in recent years as investors become more interested in environmentally friendly investments. Green bonds help to finance renewable energy, energy efficiency, sustainable transportation and water treatment plants, among others. They also help to raise awareness and encourage investment in environmental projects and it is a way to align financial markets with the Paris Agreement goals.

Natural and built features that provide environmental benefits, such as stormwater management, air quality improvement, and climate change adaptation.

Transport that is powered by low- or zero-emissions technologies, such as electric vehicles and public transportation. Green transport can help to reduce greenhouse gas emissions.

The Greenhouse Gas Protocol (GHG Protocol) is a globally recognised standard for measuring and managing greenhouse gas emissions.

The GHG Protocol was established in 1990 out of the need for a consistent framework for greenhouse gas reporting. Today, it collaborates with governments, industry associations, NGOs, corporations and other organisations to provide the world's most widely used emission calculation guidelines.Countries and companies committed to the Paris Agreement must reduce their GHG emissions. They must account for, report, and mitigate emissions by following standards such as the GHG Protocol. The GHG Protocol has enabled decarbonisation across operations in the public and private sectors by providing a unified framework for emission management. Plan A's software follows the GHG Protocol.

Source: WRI

The greenhouse effect occurs when greenhouse gases (GHGs) accumulate in the Earth's atmosphere. These naturally occurring gases include carbon dioxide, methane, nitrogen oxide, and fluorinated gases, chlorofluorocarbons (CFCs). Greenhouse gases trap the sun's heat as it reflects from the Earth's surface. This process warms the planet and leads to rising global temperatures. Without the natural greenhouse effect, the global mean temperature would be -18°C and therefore uninhabitable for humans. Humans amplify the natural greenhouse effect by releasing greenhouse gases when burning fossil fuels such as coal, oil, and natural gas.

Greenhouse gases (GHGs) are gases in the atmosphere that contribute to the greenhouse effect and warm the planet. Carbon dioxide (CO2), ozone (O3), methane (CH4), and nitrous oxide (N2O) are the significant gases driving the atmospheric temperature increase. According to the IPCC report, an estimated 59 billion tonnes of GHG were emitted in 2019, with a large part being carbon dioxide.

A target to reduce greenhouse gas emissions to zero, but without taking into account the emissions that are offset by carbon credits.

Compounds that contain hydrogen and carbon. Hydrocarbons are the primary source of energy for many countries.

Hydrogen is the most abundant element that exists in the universe. Both the sun and the stars are composed mainly of hydrogen. It is a very light gas that is colourless, odourless, and tasteless. It can be used as a source of energy. In Europe, it makes up less than 2% of our current energy consumption and is mostly used for the development of complex chemical products. Hydrogen is a fuel that produces only water and is an important element of the EU's strategy for energy system integration.

The portion, or share of an outcome that is caused by an intervention, compared to what would have happened anyway. It is calculated using the concepts of deadweight, attribution, displacement, benefit period and drop-off. Impact is an intervention’s contribution and is sometime also described as additionality.

A document that demonstrates the impact of a research project or body of work. In higher education, these include detailing how the underpinning research has been used beyond academia to have social, environmental, economic or cultural impacts. ICSs are critical during submissions to certain national assessments, such as in the UK, Australia and Hong Kong. Importantly, ICSs must be supported with clear evidence of the impact, alongside a compelling narrative. In some national assessments these play a critical role in determining the level of funding a university secures.

A mechanism for illustrating how research is, has or could be applied beyond academia to have real-world impact, such as collaborating with a community group to embed a new approach to their work. Impact pathways demonstrate how you could, or did, engage with potential beneficiaries. They are useful to demonstrate what role the research may have had in achieving an outcome

An impact report measures and communicates the social, environmental, and economic impacts of an organisation's activities, products, or services. It helps to communicate the difference an organisation is making on people and the planet. The impact report should tell readers the actions a company is responsible for and the changes that these actions have created. Whilst an annual report focuses more on the statistics and performance of the business across the year, the impact report explores outcomes and the meaningful change of these outcomes. Impact reports can also draw on frameworks to analyse progress towards goals, such as the UN sustainable development goals.

A way of knowing whether (or not) an outcome has taken place. Typically, indicators are metrics that we track change against, to understand the size or magnitude of an outcome. There are two parts to an indicator we need to get right: the identification of the outcome state (the question); and the measurement of its level (the scale).

As described by the Greenhouse Gas Protocol, indirect emissions are made up of Scope 2 and Scope 3 emissions. These are emissions which are a consequence of a company's or organisation's activities but are owned or controlled by another entity. Examples of indirect emissions include but are not limited to: purchased electricity, waste disposal, and business travel.

Resources (financial and non-financial) that are deployed to create impact related activities.

The Intergovernmental Panel on Climate Change (IPCC) is an intergovernmental body of the United Nations responsible for advancing knowledge on human-induced climate change. The IPCC compiles comprehensive Assessment Reports regarding the state of "scientific, technical, and socio-economic knowledge on climate change." The IPCC, composed of 195 member states, was established in 1988 and headquartered in Geneva, Switzerland. The IPCC compiles comprehensive Assessment Reports regarding the state of "scientific, technical, and socio-economic knowledge on climate change." The body is responsible for furthering our knowledge related to human-induced climate change. Each of these Assessment Reports has directly powered international policymaking around climate change. In 2007, the IPCC and US Vice-President Al Gore were jointly given the Nobel Peace Prize “for their efforts to build up and disseminate greater knowledge about man-made climate change, and to lay the foundations for the measures that are needed to counteract such change”.

Source: IPCC

The Kyoto Protocol was the first treaty that committed the 87 partaking nations to reduce their greenhouse gas emissions based on scientific consensus. The treaty was adopted in Kyoto, Japan, in 1997 and was implemented eight years later in 2005. The primary goal of the Kyoto Protocol was to control emissions of the main human-caused greenhouse gases. The Kyoto Protocol's first commitment period ended in 2012 when a second commitment period was agreed to, known as the Doha Amendment. The Protocol set a precedent for countries to act on the climate urgency.

Logic models are a graphical representation of a theory of change, illustrating the links between programme resources, activities, outputs and audiences and the short, intermediate and long-term outcomes related to a specific problem or solution. They provide a useful framework for mapping and understanding what outcomes might be achieved and how.

Information is material if its omission has the potential to affect a stakeholders’ decisions. It is a concept that helps with scoping the most important aspects to collect data on. Outcomes and stakeholders can be considered for materiality based on two factors:

• significance – the size of the outcome experienced; and

• relevance – the applicability to the Theory of Change.

Materiality assessment is a process of identifying the relative impact of a range of environmental, social and governance (ESG) issues on the company’s performance and viability within the current market framework, and categorising those issues into a hierarchy which can then be used to guide strategy and help the organisation provide a complete and accurate accounting of its sustainability to investors.

Methane (CH4), a primary constituent of natural gas, is a greenhouse gas, and its presence in the atmosphere affects our climate system and the Earth's temperature.

Although CO2 has a longer-lasting effect on our climate, methane has a much higher Global Warming Potential (GWP) than carbon dioxide. According to the Environmental Defence Fund, methane accounts for at least 25% of today's global warming. Agriculture (primarily through manure and gastroenteric releases, but also through rice cultivation) is responsible for around a quarter of the methane emissions, followed by the energy sector.

Climate change mitigation describes the efforts to minimise or avoid the emission of greenhouse gases. Climate change mitigation differs from climate adaptation, which entails actions to adjust our lives or infrastructure to a new reality. Some examples of mitigation could be switching to renewable energy or making older equipment more energy efficient to limit the effects of climate change.

Mitigation Hierarchy means that decarbonisation should always come before "beyond value chain mitigation (BVCM)": compensation and neutralisation. Net-zero can only be achieved by deep emission cuts of at least 90% by 2050, after which residual emissions are addressed with neutralisation.

Trees that are native to a particular region. Native trees are better adapted to the local climate and environment than non-native trees.

Near-term science-based targets are defined by targets for the next five to ten years, halving emissions as compared to a baseline year. A first reality check on a company’s journey to net-zero 2050.

The natural resources that provide benefits to people, such as clean air and water, food, and timber. Natural capital is important for human well-being and economic development.

Net-zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere by oceans and forests, for instance. Net-zero is reached when a business has eliminated all the carbon emissions it could and then compensated the remaining emissions with beyond value chain mitigation.

The net-zero process starts with calculating emissions across Scope 1, 2, and 3, setting science-based targets, developing decarbonisation pathways until 2030, and gradually moving towards long-term carbon capture, storage, and sequestration for those emissions which cannot be reduced.

Source: CDP

The amount of greenhouse gas emissions that an organisation or country aims to reduce beyond net-zero. Net zero coverage and net zero objectives can help to ensure that organisations and countries are taking ambitious action to address climate change.

A target to reduce greenhouse gas emissions to zero. Net zero targets are becoming increasingly common as countries and organisations commit to taking action on climate change

Neutralisation corresponds to the removal of carbon from the atmosphere and its permanent storage. It can also be referred to as Carbon Dioxide Removal (CDR). Projects include inter alia Direct Air Capture (DAC) and Bioenergy with carbon capture and storage (BECCS).

Source: Science-based Targets Initiative

Nitrous oxide (N2O), also known as laughing gas, contributes to the greenhouse effect.

In addition to natural sources, agriculture and fertilisers produce nitrous oxide. Around 40% of the total N2O emissions globally come from human activities. The IPCC has calculated that nitrous oxide comprises about 6% of all greenhouse gas emissions, and its emissions rose 30% in the past forty years.

The Non-Financial Reporting Directive (NFRD), also called the Directive 2014/95/EU of the European Parliament, lays out the regulation around the disclosure of non-financial and diversity information for larger companies. The directive came into effect in all EU member states for accounting periods starting in 2017. It requires large “public interest entities” to disclose information on environmental, social and employee matters, respect for human rights, and bribery and corruption, to the extent that such information is necessary for an understanding of the company’s development, performance, position and impact of its activities. A “public interest entity” is defined as a company that is listed on an EU regulated market, a credit institution and/or an insurance undertaking, and is in-scope of the NFRD where it has an average of 500 or more employees. This directive helps investors, consumers, policymakers, and other stakeholders gauge a company's non-financial performance.

Source: European Union

Offsetting is a process that entails the reduction or removal of emissions of carbon dioxide or other greenhouse gases to compensate for emissions made elsewhere. Carbon offset projects allow companies and individuals to invest in quantifiable environmental projects to balance their carbon emissions. Offsetting technologies include reforestation, cleaner cooking stoves, and carbon capture. It is part of any corporate sustainability strategy that aims to reach net-zero when it complements a decarbonisation strategy.

Source: Collins Dictionary

The total amount of greenhouse gas emissions that an organisation produces. The organisational carbon footprint can be used to measure organisation's impact on climate change.

Outcomes are the change that occurs as a result of an activity. For example: increased wellbeing; reduced carbon footprint; and increase in local prosperity. Intended outcomes normally avoid harm, benefit stakeholders or contribute to solutions. Outcomes can be short term (immediate), medium term or long-term and are depicted in visual stepping stones (logic chains) as part of a Theory of Change. Long-term outcomes often refer to higher-level or compound concepts such as ‘social inclusion’ whereas nearer term outcomes might be

An outcomes framework provides the basis for identifying what type of activity or intervention will lead to the outcomes identified as preconditions for achieving the long-term goal. Through this approach, the precise link between activities and the achievement of the long-term goals are more fully understood. This leads to better planning, in that activities are linked to a detailed understanding of how change actually happens. It also leads to better evaluation, as it is possible to measure progress towards the achievement of longer-term goals that goes beyond the identification of program outputs.

Tangible and direct products that result from activities, for example the number of trees planted or the number of people who attended a training.

Ozone (O3) is a pale blue gas constituted of three oxygen atoms that is present in different layers of our atmosphere. Usually, O3 is not emitted into the air directly but is developed at ground level through a chemical reaction. Ozone layer depletion does not cause global warming, but it can be damaging to human health. It is one of the planetary boundaries defined by the Stockholm Resilience Center. According to NASA, negative shifts in the ozone layer are offset by positive changes in human behaviour, which allows the ozone layer to reform.

Source: NASA

The Paris Climate Agreement aims to limit global warming to "well below 2°C, and preferably below 1.5°C." It is an international treaty adopted by 196 nations at COP21 in Paris in 2015 and came into force a year later in 2016. The Paris Agreement has requested participating countries to formulate actions they plan to take to reduce greenhouse gas emissions. The commitments are known as Nationally Determined Contributions (NDCs). Within the agreement, countries developed an enhanced transparency framework (ETF) to report transparently and track progress on the actions taken. The Paris Climate Agreement covers climate change mitigation, adaptation, and finance.

Source: UNFCCC

The avoidance of a harm (to people, planet or economy) by doing an intervention which changes the determining influences of that harm. For example, a prevention program could increase the fitness of older people to reduce age-related physical injuries.

A list of principles developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General. In signing the Principles, investors publicly commit to adopt and implement them, where consistent with their fiduciary responsibilities.

The principles are as follows:

• Principle 1: To incorporate ESG issues into investment analysis and decision-making processes.

• Principle 2: Signers will be active owners and incorporate ESG issues into their ownership policies and practices.

• Principle 3: Signers will seek appropriate disclosure on ESG issues by the entities in which they invest.

• Principle 4: Signers will promote acceptance and implementation of the Principles within the investment industry.

• Principle 5: Signers will work together to enhance their effectiveness in implementing the Principles.

• Principle 6: They will report on their activities and progress towards implementing the Principles.

Source: UNPRI

The reach is the extent or breadth of the beneficiaries of the impact. For example, does the impact affect only a handful of individuals, or does it have widespread national implications?

The Science Based Targets initiative (SBTi) promotes best practices and well-defined guidelines to reduce emissions and provides target-setting methods based on climate science. The initiative helps businesses set carbon reduction goals compliant with the Paris Agreement Targets. Science-Based Targets (SBTs) focus on the number of emissions that needs to be decreased to comply with the targets set out in the Paris Climate Agreement.

Source: Science Based Targets

Scope 1 emissions are direct emissions from company-owned and controlled resources. In other words, they are emissions released into the atmosphere directly resulting from a set of activities. Examples can be on-site combustion, organisation-owned fossil-fuel power plants, or the emissions from the company fleet.

Source: GHG Protocol

Scope 2 emissions are indirect emissions from the generation of purchased energy from a utility provider. They include all GHG emissions released into the atmosphere from the consumption of purchased electricity, steam, heat, and cooling.

Source: GHG Protocol

Scope 3 emissions, also known as value chain emissions, are all indirect emissions that occur in the reporting company's upstream and downstream supply chain. As defined by the GHG Protocol, Scope 3 emissions are separated into 15 different categories, including business travel, waste disposal, and purchased goods and services.

Source: GHG Protocol

A method for analysing the dollar value return from a project relative to the investment costs. SCBA is commonly used as part of government policy reviews and is typically based on traditional economic valuation methods with more precise guidance provided by each respective department that authorises the evaluation approach. SCBA is a more limited cost-benefit method than Social Return on Investment (SROI) – see below- as the latter includes a broader range of measurement and valuation techniques.

Impact which is experienced by individual people or groups of people as oppose to environmental and economic impacts.

A social impact bond (SIB) is a contract with the public sector or governing authority, whereby it pays for better social outcomes in certain areas and passes on part of the savings achieved to investors. A social impact bond is not a bond, per se, since repayment and return on investment (ROI) are contingent upon the achievement of desired social outcomes. If the objectives are not achieved, investors receive neither a return nor repayment of principal. SIBs derive their name from the fact that their investors are typically those who are interested in not just the financial return on their investment, but also in its social impact.

Social impact investments are a subset of impact investments that are intentional about creating impact by targeting and supporting organisations dedicated to delivering a measured, deep and lasting positive social impact, whilst providing financial returns.

Source: Big Society Capital

Social innovation involves changing social services or the patterns of social behaviour for to better meet peoples' needs.

Social investors are a self-defined group of asset owners, predominantly philanthropists and foundations who have a specific mandate to invest to achieve certain social goals, rather than returns.

Source: Big Society Capital

The positive impact that an organisation has on society. Social purpose can be measured in a number of ways, such as employee satisfaction, community engagement, and social responsibility.

A cost-benefit method for determining the total value (social, environmental and economic) that is created relative to the total value invested in an intervention. It is an outcomes based evaluation that follows the seven principles of Social Value practice: involving stakeholders, understanding what changes, valuing the things that matter, including only material changes, not over-claiming, transparency and results verification. It uses a range of valuation techniques to recognise a broad range of social outcomes.

Socially responsible investing (SRI) is an investment strategy that considers environmental, social, and governance (ESG) factors in addition to financial factors, with the intent of generating long-term competitive financial returns and overall positive societal impact.

The quantification of both the size of an outcome and its relative importance. This is often represented through a monetary value but it does not have to be (it could be expressed through words or alternative metrics). A typical calculation would be ‘size of impact’ x ‘valuation of impact’.

The SECR requires 11,900 UK companies to disclose their energy and carbon emissions. The reporting framework encourages the implementation of energy efficiency measures with economic and environmental benefits to support companies in cutting costs and improving productivity while reducing carbon emissions. The reporting requirement has been in place since April 2019.

The Sustainable Development Goals (SDGs), developed by The United Nations General Assembly (UN-GA), provide a "blueprint for peace and prosperity both for people and for the planet". They are an urgent call for action by all United Nations Member States.

The Sustainable Development Goals were set up in 2015 and are intended to be accomplished by 2030.

There are 17 SGDs:

1. No poverty

2. Zero hunger

3. Good health and well-being

4. Quality education

5. Gender equality

6. Clean water and sanitisation

7. Affordable and clean energy

8. Decent work and economic growth

9. Industry innovation and infrastructure

10. Reduced inequalities

11. Sustainable cities and communities

12. Responsible consumption and production

13. Climate action

14. Life below water

15. Life on land

16. Peace, justice and strong institutions

17. Partnerships for the goals.

Source: United Nations

The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation that came into effect in March 2021 to increase the transparency on sustainability among financial institutions and market participants. The SFDR applies to financial institutions such as banks, insurers, and asset managers operating in the European Union and has three main goals:

• To improve disclosures so asset owners and retail clients can understand and compare financial products' sustainability characteristics.

• To ensure a level playing field within the European Union so that European companies will not receive unfair competition from companies outside the European Union.

• To counter greenwashing.

Source: European Union Law

The Financial Stability Board created the Task Force on Climate-related Financial Disclosures (TCFD) to improve and increase the reporting on a company's climate-related risks and opportunities as well as their financial impact on the business. The TCFD is an organisation of 32 members and has established a framework helping public companies and other organisations to disclose climate-related risks and opportunities through their existing reporting processes.

Source: Task Force on Climate-related Financial Disclosures

A Theory of Change(ToC) is essentially a comprehensive description and illustration of how and why a desired change is expected to happen in a particular context. It is focused in particular on mapping out or “filling in” what has been described as the “missing middle” between what a program or change initiative does (its activities or interventions) and how these lead to desired goals being achieved. It does this by first identifying the desired long-term goals and then works back from these to identify all the conditions (outcomes) that must be in place (and how these related to one another causally) for the goals to occur. These are all mapped out in an Outcomes Framework.

A climate tipping point occurs when a slight change in forcing triggers a strongly nonlinear response in the internal dynamics of part of the climate system, qualitatively changing its future state. Human-induced climate change could push several large-scale ‘tipping elements’ past their respective tipping points. These elements include the Atlantic thermohaline circulation (THC), West Antarctic ice sheet, Greenland ice sheet, Amazon rainforest, boreal forests, West African monsoon, Indian summer monsoon, and El Niño/Southern Oscillation (ENSO).

Source: IPCC

The Paris Agreement's goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels. To achieve this long-term temperature goal, countries aim to reach the global peaking of greenhouse gas emissions as soon as possible to achieve a climate-neutral world by mid-century.

The UN Framework Convention on Climate Change (UNFCCC) created an international environmental treaty to combat "dangerous human interference with the climate system" partially through stabilising greenhouse gases in the atmosphere. One hundred fifty-four nations signed the treaty in 1992 during UNCED, informally known as the Earth Summit, and entered into force in 1994. The Kyoto Protocol was the first implementation of measures under the UNFCCC. This protocol was substituted by the Paris Agreement, which came into force in 2016.

Source: United Nations

IValue chain emissions, also known as Scope 3 emissions, account for the most significant part of many organisations' total Corporate Carbon Footprint (CCF). According to the GHG Protocol, value chain emissions are divided into 15 different categories, although not every category is relevant to each type of company or organisation. The categories include business travel, waste disposal, and purchased goods and services.

Sin stocks, also known as vice stocks, are shares in companies that produce or sell products or services, directly or indirectly, that are considered harmful or addictive, such as alcohol, tobacco, gambling, and firearms.

Voluntary Emission Reductions (VER) are emission reductions made voluntarily and not mandated by any regulation or legislation. They usually originate from the will of an organisation to take proactive climate action. The voluntary market functions outside of the compliance market. Businesses, organisations, and individuals that wish to offset with no regulatory obligation can use Voluntary Emission Reductions. The carbon credits generated under the VER cannot be used in meeting governmental compliance measures as stated by the Kyoto Protocol.

Weather is the state of the atmosphere at a particular place during a specific time, including pressure, temperature, wind, humidity, precipitation, and cloud cover. Weather is different from climate, which is all weather conditions for a particular location averaged over about 30 years.

Zero carbon means a product or service produces no carbon emissions. For example, renewables like wind and solar are referred to as zero carbon, as they do not emit carbon when producing electricity. Where net-zero refers to cancelling or balancing any carbon a company produces, zero carbon refers to a product or service emitting no CO2e. Further, net-zero carbon emissions mean that an activity releases net-zero carbon emissions into the atmosphere.

Homes that produce no net emissions of greenhouse gases. Zero carbon homes and zero carbon housing are becoming increasingly common as people and governments seek to reduce their impact on climate change.