Reduction of GHG emissions achieved through reduction measures or energy efficiency.

The base year is a fixed year established during the first inventory.

A set of norms for validating and verifying carbon credits, ensuring that emission reductions are real and permanent.

Units of measurement that represent a reduction in GHG emissions by one tonne CO₂eq.

A unit of measurement used to compare the impact of different GHGs on the climate by converting them into the equivalent of CO₂.

Measure of a company's GHG emissions per unit of production or revenue.

Carbon neutrality is essential to limit global warming to 1.5 degrees above pre-industrial levels and is also a goal defined in the Paris Agreement. It involves balancing carbon emissions with carbon absorption from the atmosphere by carbon sinks. At the company level, this means reducing GHG emissions as much as possible and offsetting the residual and unavoidable emissions through reforestation projects, alternative energy production, etc.

Financing projects that reduce GHG emissions to compensate for a company’s residual emissions.

A set of measures aimed at reducing the vulnerability of businesses to the effects of climate change. Measures include assessing climate risks, developing an adaptation plan, integrating climate resilience into decision-making, raising employee awareness, and collaborating with stakeholders. By adopting these measures, businesses can reduce their vulnerability and improve their long-term resilience.

Measures aimed at reducing GHG emissions (decarbonisation) to slow down or stop global warming. This may include actions such as the use of renewable energy sources, energy efficiency, and reduction of fossil fuel consumption. Mitigation is complementary to adaptation because even with strong mitigation efforts, some effects of climate change are inevitable. Therefore, it is important to implement adaptation measures to reduce the vulnerability of businesses and communities to these impacts.

The Corporate Sustainability Reporting Directive (CSRD) modernises and strengthens the rules concerning the social and environmental information that companies must report. A broader set of large companies, as well as listed SMEs, are now required to report on sustainability. Some non-EU companies must also comply if they generate over EUR 150 million in revenue within the EU market.

Decarbonisation involves reducing CO₂ and other GHG emissions across all economic activities. It is necessary for all companies seeking to improve their competitiveness as well as address environmental challenges.

Double materiality is a concept where companies must consider both the impact of their actions on people and the planet, and how sustainability issues affect their financial well-being. Essentially, it involves looking at the big picture from two perspectives.

Transition from the use of fossil fuels to electricity for industrial processes to reduce GHG emissions.

Used to convert the company's activity data into GHG emissions or removals, using a coefficient that is specific to each type of GHG and each source of emission or removal. This factor is often expressed in units of GHG mass per unit of activity, such as tons of CO₂eq per km travelled for transportation emissions.

A homogeneous group of GHG emission sources or GHG sink removals. An emission source can be considered as a subcategory. GHG emission sources are grouped into categories. ISO 14064-1 distinguishes six categories of emissions:

• Direct emissions
• Indirect emissions from energy use
• Indirect emissions associated with transportation
• Indirect emissions associated with purchased products
• Indirect emissions associated with sold products
• Other indirect GHG emissions
• Direct GHG Emissions GHG emissions controlled by the company.

Environmental, Social, and Governance (ESG) is an investing principle that prioritises environmental issues, social issues, and corporate governance. Investing with ESG considerations is often referred to as responsible investing or, in more proactive cases, impact investing.

As part of the European Green Deal, the EU has outlined the Sustainable Finance Framework, which is intended to help embed sustainability factors at various levels of the economy. The Sustainable Finance Framework includes the application of new EU regulations on corporate transparency. The three most important are the EU Taxonomy, the CSRD, and the SFDR.

The EU Taxonomy for sustainable activities, also known as the "green taxonomy," is a classification system established to clarify which economic activities are environmentally sustainable within the context of the European Green Deal. The aim of the taxonomy is to prevent greenwashing and help investors make informed sustainable investment decisions.

Assessment, over one year, of the total volume of GHG emissions and removals induced by the company's activities, expressed in CO₂eq.

A GHG sink is a natural or artificial process that removes GHGs from the atmosphere by storing them in reservoirs or converting them into organic matter. The main types of sinks include forests, soils, oceans, and carbon capture and storage technologies.

Increase in the average temperature of the planet due to the intensification of GHG emissions related to human activities (economic activities or population growth). Consequences of climate change include more frequent droughts, heat waves, heavy rains, and floods. Rising sea levels, ocean acidification, and the loss of biodiversity are other consequences of rapid climate changes.

It is a factor that measures the climate impact of one unit of GHGs compared to one unit of CO₂eq. The GWP allows defining the unit of measurement for the greenhouse effect, which is CO₂eq. By definition, the GWP of CO₂ is 1, and it allows comparing the climate impact of a given quantity of gas with that of the same quantity of CO₂.

GHGs are gaseous constituents of the atmosphere, of natural or human origin, that absorb and emit infrared radiation at specific wavelengths, contributing to the greenhouse effect. The GHGs considered are those included in the Kyoto basket, such as CO₂, methane (CH₄), nitrous oxide (N₂O), and fluorinated gases.

GHG emissions that result from the company's operations and activities but originate from GHG sources controlled by other companies, either upstream or downstream.

An international standard from the International Organization for Standardization (ISO) that specifies principles and requirements for quantifying and reporting GHG emissions and removals at the organisational level.

Method for assessing the environmental impacts of a product or service over its entire life cycle, from raw material extraction to end-of-life disposal.

Term used to describe technologies, products, or practices that have lower GHG emissions than the average for their sector.

The Nationally Determined Contributions (NDCs) are commitments that countries make to reduce their GHG emissions as part of climate change mitigation. These commitments include the necessary policies and measures for achieving the global targets set out in the Paris Agreement.

The operational boundary represents all GHG emissions related to the operations of the legal entity, categorised and itemised by source.

The organisational boundary refers to all equipment and installations controlled by a legal entity.

The main sources of GHGs include:

• The combustion of fossil fuels
• Agriculture
• Industry
• Waste
• Transportation
• Buildings

These sources of GHGs contribute to increasing the concentrations of GHGs in the atmosphere, which is responsible for climate change and its effects on the environment and human beings.

Refers to the amount of GHGs emitted throughout a product’s life cycle, from production to disposal, including transportation and use. It considers both direct and indirect emissions, including those related to the energy required for manufacturing, raw material usage, waste management, etc.

Reduction of gas emissions that escape from production systems, such as methane emissions from gas and oil facilities.

The reporting year is the year for which activity data is collected to establish the GHG emissions inventory.

The classification of GHG emissions by their origin includes three categories or scopes:

• Scope 1: Direct GHG emissions from on-site combustion sources, such as emissions from boilers, furnaces, and on-site transportation equipment. These emissions are considered direct because they come directly from the company's activities.
• Scope 2: Indirect GHG emissions related to the company's energy consumption, such as electricity, heat, or steam purchased from an external supplier. These emissions are considered indirect because they are connected to the company's activities but originate from third-party energy production.
• Scope 3: Indirect GHG emissions from the activities of third parties, such as emissions generated by the production of materials, distribution of finished products, employee travel, waste management, and the use of the company's products. These emissions are considered indirect because they are related to the company's activities but come from external sources.

Trading carbon credits between companies, where one company can purchase carbon credits to offset its own GHG emissions.

The EU Sustainable Finance Disclosure Regulation (SFDR) is a set of rules designed to make the sustainability profile of investment funds more comparable and understandable for end-investors.