Explore key terms in carbon accounting, supporting accurate measurement and management of environmental impact.
Quantitative measures of consumption or production, such as litres of fuel used or kilowatt-hours of electricity consumed, which are combined with emission factors to calculate greenhouse gas emissions.
Calculation method for Scope 3 emissions that use sectoral or category average data. While less precise than other methods, it proves useful when supplier-specific data are unavailable.
A regulatory system for managing greenhouse gas emissions that sets a maximum limit (cap) for emissions allowed within a specific sector or region. These limits are quantified as allowances (1 tonne of COâ‚‚ equivalent = 1 allowance). Companies emitting less than their allocation can sell surplus allowances, whereas those exceeding their cap must purchase credits from organisations operating below their limit.
A framework for measuring, recording, and analysing information related to greenhouse gas emissions. It informs decision-makers within the company and external stakeholders.
Represents the right to emit one tonne of COâ‚‚ or equivalent greenhouse gases (COâ‚‚e), typically within an emissions trading system such as the ETS. Allowances can be allocated free, purchased, or sold. The system incentivises emission reductions and rewards those emitting less than their limit by allowing them to sell excess allowances to others needing additional credits.
A unit representing the capture (removal or absorption) or avoidance of one tonne of COâ‚‚ equivalent. Carbon credits can be traded in markets and are often used by companies to offset their emissions.
Represents the total greenhouse gas emissions attributed to a product, service, or organisation over a specified period. It serves as a critical measure of environmental impact and helps identify areas for reducing emissions.
The practice of monitoring and managing an organisation’s greenhouse gas emissions. This involves measuring, tracking, and reporting emissions while implementing strategies to mitigate them. It enables businesses to identify emission sources, set reduction targets, and monitor progress, ensuring regulatory compliance and transparency.
The achievement of a balance between greenhouse gas emissions produced and those offset through reduction initiatives, emission capture, or removal
An international non-profit organisation that promotes environmental transparency and provides a recognised system for sustainable reporting. The CDP collects and publishes self-reported greenhouse gas emission data from organisations and offers comparative metrics.
Refers to long-term changes in climate patterns and atmospheric conditions driven by the increase of greenhouse gases in the atmosphere. These changes can result from both natural causes and, more prominently, human activities.
A colourless, odourless gas produced by the combustion of fossil fuels, biomass, and other carbon-based materials. It is a primary contributor to global warming, making its monitoring a priority in climate policies.
A standardised metric expressing the impact of various greenhouse gases in terms of the equivalent amount of COâ‚‚. Gases like methane and nitrous oxide, which have greater warming potential, are converted into COâ‚‚ equivalents (COâ‚‚e) using their Global Warming Potential (GWP) to facilitate aggregation of total emissions.
The systematic reduction of carbon emissions into the atmosphere. For businesses, this involves adopting renewable energy, enhancing energy efficiency, or investing in low-carbon technologies.
The UK Department for Environment, Food & Rural Affairs, which oversees policies on the environment, food, and rural areas. DEFRA provides greenhouse gas emission factors and guidelines for organisations to calculate their emissions.
Greenhouse gas emissions directly produced by sources owned or controlled by an organisation.
The European Financial Reporting Advisory Group is an organisation that supports the European Commission in developing sustainability and financial reporting standards, aligning companies with EU environmental and social goals.
Quantitative information detailing the greenhouse gas emissions generated by an organisation’s activities or specific products. This data is useful for managing and reporting emissions including raw data from emission sources and calculated emission figures.
Represents the quantity of greenhouse gases emitted per unit of activity (e.g., kg of COâ‚‚ per kWh of electricity consumed). It is used to estimate emissions based on consumption or production data and varies depending on the type of activity and energy source.
A strategy in which companies finance projects that reduce or remove greenhouse gases to compensate for their emissions. Common initiatives include reforestation, renewable energy development, and carbon capture technologies.
A system based on the Cap and Trade mechanism, primarily used in Europe, to regulate corporate COâ‚‚ emissions. The ETS sets a cap on total emissions per sector and allocates or sells allowances to participating companies, which can then be traded.
Refers to the process of recording greenhouse gas (GHG) emissions in economic terms, associated with market mechanisms such as Cap and Trade. This approach analyses the management and trading of carbon allowances —whether allocated, purchased, or sold— to optimise the financial performance and contribute to overall emissions reductions.
Gases that trap heat in the Earth’s atmosphere, contributing to global warming and climate change. Major greenhouse gases include carbon dioxide (COâ‚‚), methane (CHâ‚„), and nitrous oxide (Nâ‚‚O).
The release of greenhouse gases into the atmosphere from human or natural activities. These include COâ‚‚, methane, nitrous oxide, and fluorinated gases, all of which contribute to global warming and climate change.
A detailed account of an organisation’s greenhouse gas emissions and removals, or those of a specific project. It is an essential tool for monitoring and reporting environmental impact and setting emission reduction targets.
A voluntary international standard for measuring, managing, and reporting greenhouse gas emissions. Developed by the World Resources
Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it is widely used globally to help organisations measure and reduce their environmental impact. The protocol categorises emissions into direct and indirect sources (Scope 1, Scope 2, and Scope 3), defines quantification methods, and establishes criteria for determining organisational boundaries.
An index measuring a greenhouse gas’s capacity to trap heat in the atmosphere over a defined period compared to carbon dioxide (COâ‚‚). The higher the GWP of a gas, the greater its impact on global warming relative to COâ‚‚.
The practice of making misleading or false claims about a company’s products or policies being environmentally friendly to enhance the public image of the company without implementing meaningful changes
Method for calculating Scope 3 emissions that combines multiple methodologies (e.g., supplier-specific, average-data, and spend-based approaches) to achieve a more comprehensive estimate, adapting to the availability of data across the supply chain.
Emissions arising from activities not directly controlled by an organisation but related to the consumption of goods or services, such as purchased electricity (Scope 2) or supply chain emissions (Scope 3).
A UN-established body tasked with providing scientific, technical, and socio-economic assessments on climate change. It publishes periodic scientific reports to guide global climate policies and actions.
A voluntary international standard by the International Organization for Standardization (ISO) that specifies requirements for quantifying, monitoring, reporting, and verifying greenhouse gas emissions and reductions. It consists of three parts:
· ISO 14064-1: For quantification and reporting of emissions at the organisational level.
· ISO 14064-2: For quantification of emission reductions at the project level.
· ISO 14064-3: For verification and validation of emissions claims.
The Italian Institute for Environmental Protection and Research, responsible for environmental monitoring, research, and conservation. It provides official data and reports on greenhouse gas emissions and other environmental factors, acting as a national reference for implementing European environmental regulations.
A systematic methodology for analysing the environmental impact of a product, service, or process throughout its life cycle, from raw material extraction to production, distribution, use, and disposal. It is a crucial tool for identifying areas for sustainability improvement in business practices.
This method calculates Scope 2 emissions using average emission factors for a given geographical area (e.g., the national energy mix). It reflects the average impact of electricity consumption in a specific location.
This method calculates Scope 2 emissions based on emission factors specific to the energy suppliers chosen by the organisation. It allows for greater precision by considering the source of purchased energy through contracts or energy certifications.
Developed by the British Standards Institution (BSI), this standard provides a methodology for calculating and reporting greenhouse gas emissions across the life cycle of a
product or service. It considers all supply chain stages, from raw material extraction to disposal, enabling companies to measure and reduce the carbon footprint of their products.
The process of restoring forests in previously deforested areas, aiming to improve biodiversity, sequester COâ‚‚ from the atmosphere, restore natural habitats, and counteract environmental degradation.
A global initiative providing guidelines and certifications for companies aiming to set emission reduction targets aligned with the latest scientific evidence and the Paris Agreement. It advocates emission reductions sufficient to limit global warming to below 1.5°.
Defined by the GHG Protocol, Scope 1 includes direct greenhouse gas emissions from sources owned or controlled by an organisation, such as fuel combustion in industrial facilities, company vehicles, and other direct activities.
Defined by the GHG Protocol, Scope 2 covers indirect emissions from the energy purchased by an organisation, such as electricity, heat, and steam. These emissions are produced externally but result from the organisation’s energy consumption.
Defined by the GHG Protocol, Scope 3 encompasses all other indirect emissions outside Scope 1 and Scope 2, arising along the organisation’s value chain. These include emissions from the production of purchased goods and services, employee travel, transportation and distribution, waste, and product usage.
Estimates Scope 3 emissions by using the economic value of purchases. Emissions are calculated by multiplying the amount spent in a specific category by an economic emission factor (e.g., COâ‚‚ per euro spent), providing a preliminary estimate when specific data are unavailable.
A method for calculating Scope 3 emissions based on emission data provided directly by an organisation’s suppliers. It offers greater accuracy by using real emissions data associated with purchased products.
Within an organisation, it refers to the unit, department, or team responsible for sustainability strategies. Its functions include developing policies focused on sustainability and social responsibility, managing emissions, reducing environmental impact, and ensuring compliance with environmental regulation.
Metodo di calcolo delle emissioni di Scope 3 basato sull’utilizzo di dati medi settoriali o di categoria. Pur meno preciso di altri metodi, dimostra la sua utilità in assenza di dati specifici del fornitore.
Long-term changes that occur on climate models and atmospheric variables as a consequence of the increase in greenhouse gases present in the atmosphere. These changes can be attributable to both natural factors and, mainly, human activities.
Emissions regulatory system that establishes a maximum limit (cap) on greenhouse gas emissions allowed in a specific sector or territory. At company level, the maximum limit is expressed in number of emission quotas (1 ton of CO2eq. = 1 quota), companies that emit less than their limit can sell their excess quotas, while those that exceed the limit must buy (trade) emission allowances (credits) from those below.
System that uses accounting methods and procedures to collect, record and analyze information relating to climate change in order to inform the decision-making processes of internal managers and stakeholders external to the company.
Indice di valutazione dell’impatto ambientale e consente di identificare le aree su cui agire per ridurre le emissioni. Misura il totale di gas serra emessi da un prodotto, un servizio o un’organizzazione in un periodo di tempo definito.
Objective which consists in the complete balancing between the emissions produced (by an activity, product or organisation) and those compensated through actions to reduce greenhouse gases, capture (prior to the emission of gas in the atmosphere) or removal (after emission has already occurred).
Obiettivo che consiste nel completo bilanciamento tra le emissioni prodotte (da un’attività , prodotto o organizzazione) e quelle compensate attraverso azioni di riduzione dei gas serra, cattura (antecedente all’emissione di gas in atmosfera) o rimozione (ad emissione già avvenuta).
International non-profit organization that promotes environmental transparency and offers a recognized system of sustainable reporting. The CDP collects and disseminates self-reported greenhouse gas emissions data from organizations and produces comparative metrics.
Standardized measure that expresses the impact of different greenhouse gases in terms of equivalent quantity of COâ‚‚. Some gases (e.g. methane or nitrous oxide) have a higher warming effect than COâ‚‚ and must therefore be converted into COâ‚‚e using their Global Warming Potential (GWP), allowing companies to add up total emissions.
Emissioni di gas serra prodotte da fonti possedute o controllate direttamente da un’organizzazione.
Standard, sviluppato dalla British Standards Institution (BSI), per calcolare e rendicontare le emissioni di gas a effetto serra lungo il ciclo di vita di un prodotto o servizio. Fornisce una metodologia per quantificare l’impatto climatico dei prodotti considerando tutte le fasi della catena di fornitura, dall’estrazione delle materie prime allo smaltimento, permettendo alle aziende di misurare e ridurre l’impronta di carbonio dei loro prodotti.
