Resource

The A-Z of Sustainability

A plain-language glossary of the sustainability terms that matter most in business, regulation, and digital product development.

Regulation, reporting frameworks, and design principles are changing what businesses need to understand and act on. This glossary covers the terms we use most in our work across digital product development, corporate reporting, and circular economy strategy. We keep it updated as the landscape evolves.

A

Anthropocene

The proposed geological epoch defined by the measurable impact of human activity on Earth's climate and ecosystems. The term frames environmental challenges not as isolated issues but as the cumulative result of industrial, agricultural, and technological systems operating at global scale.

B

Biodiversity

The variety of life on Earth, spanning species, ecosystems, and genetic diversity. Biodiversity loss weakens the natural systems that regulate climate, purify water, and support food production. Businesses increasingly face scrutiny over their impact on biodiversity through land use, supply chains, and resource extraction.

B Corp

A certification awarded to companies that meet verified standards of social and environmental performance, transparency, and accountability. B Corp status signals a legal commitment to balancing profit with purpose, and is increasingly used as a differentiator in procurement and partnership decisions.

C

Carbon Footprint

The total greenhouse gas emissions caused directly and indirectly by an individual, organisation, product, or service, usually expressed in tonnes of CO2 equivalent. Measuring carbon footprint is typically the first step in any credible decarbonisation strategy, and underpins reporting frameworks such as the GHG Protocol.

Carbon Offsetting

The practice of compensating for greenhouse gas emissions by funding projects that reduce or remove an equivalent amount of CO2 elsewhere, such as reforestation or renewable energy. Offsetting has come under increasing scrutiny, with critics arguing it can delay genuine emissions reduction. Most frameworks now treat offsets as a last resort after direct reduction efforts.

Circular Economy

An economic model that replaces the traditional linear take-make-dispose approach with systems designed to keep materials in use for as long as possible. It is built on three principles: designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. The EU's Ecodesign for Sustainable Products Regulation is accelerating adoption across product categories.

Corporate Sustainability Reporting Directive (CSRD)

EU legislation that significantly expands the scope and rigour of sustainability reporting requirements for businesses. CSRD introduces the concept of double materiality, requiring companies to report on both how sustainability issues affect their business and how their operations affect people and the environment. It applies to a broader range of companies than previous directives and requires third-party assurance of reported data.

D

Decarbonisation

The process of reducing carbon dioxide and other greenhouse gas emissions from energy systems, industrial processes, and supply chains. Decarbonisation strategies typically combine energy efficiency improvements, a shift to renewable sources, and changes to operational practices. It is distinct from carbon offsetting, which compensates for emissions rather than eliminating them.

Digital Product Passport (DPP)

A structured digital record that carries environmental, material, and lifecycle data about a physical product. Required under the EU's Ecodesign for Sustainable Products Regulation, DPPs will enable consumers, recyclers, and regulators to access verifiable sustainability information. They represent a significant shift in how product data is created, stored, and shared across value chains.

Double Materiality

An assessment approach required under the CSRD that considers sustainability from two directions: how environmental and social issues create financial risks or opportunities for the business (financial materiality), and how the business itself affects people and the environment (impact materiality). This dual lens is central to European sustainability reporting and increasingly referenced in global standards.

E

Ecodesign for Sustainable Products Regulation (ESPR)

EU regulation that sets environmental performance requirements for products sold in the European market, covering durability, repairability, recyclability, and energy efficiency. ESPR also mandates Digital Product Passports for regulated product categories. It replaces the earlier Ecodesign Directive and extends its scope well beyond energy-related products.

ESG

Environmental, Social, and Governance: three categories used to evaluate a company's sustainability performance and ethical impact. ESG criteria are used by investors, regulators, and procurement teams to assess risk and long-term viability. While the term is widely used, its meaning and measurement vary significantly across frameworks and jurisdictions.

EU Taxonomy

A classification system established by the European Union that defines which economic activities can be considered environmentally sustainable. It provides a common language for investors, companies, and policymakers, and is closely linked to CSRD reporting requirements. Activities must meet specific technical screening criteria and do no significant harm to other environmental objectives.

F

Fossil Fuels

Non-renewable energy sources formed from ancient organic matter, including coal, oil, and natural gas. Burning fossil fuels is the primary driver of greenhouse gas emissions and climate change. The transition away from fossil fuels is central to decarbonisation strategies and underpins most national and international climate commitments.

G

Global Reporting Initiative (GRI)

The most widely used international framework for sustainability reporting. GRI Standards provide a structured approach for organisations to disclose their environmental, social, and governance impacts. GRI reporting is often used alongside or as a foundation for CSRD compliance.

Greenhouse Gases (GHGs)

Gases that trap heat in the atmosphere and contribute to global warming. The main greenhouse gases are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases. Measuring and reducing GHG emissions across Scope 1, 2, and 3 is the basis of corporate carbon accounting.

Greenwashing

The practice of making misleading claims about the environmental benefits of a product, service, or organisation. Greenwashing erodes trust and can expose businesses to reputational and regulatory risk. The EU Green Claims Directive, expected to come into force in the coming years, will require companies to substantiate environmental claims with verified evidence.

I

Impact Investing

Investment made with the intention of generating measurable social or environmental benefits alongside a financial return. Impact investing goes beyond ESG screening by actively directing capital towards outcomes such as clean energy, affordable housing, or sustainable agriculture.

J

Just Transition

The principle that the shift to a low-carbon economy must be managed in a way that is fair and inclusive, particularly for workers and communities most affected by industrial change. A just transition considers employment, retraining, regional economic development, and social protection alongside environmental goals.

K

Key Performance Indicators (Sustainability KPIs)

Measurable values used to track an organisation's progress against its sustainability goals. Common sustainability KPIs include carbon intensity, waste diversion rates, water usage, and supply chain audit scores. Effective KPIs are specific, time-bound, and tied to material issues identified through a materiality assessment.

L

Life Cycle Assessment (LCA)

A methodology for evaluating the environmental impact of a product or service across its entire life cycle, from raw material extraction through manufacturing, use, and end-of-life disposal or recycling. LCA helps organisations identify where the greatest environmental impacts occur and make informed design and procurement decisions.

M

Materiality Assessment

A structured process for identifying and prioritising the sustainability issues that matter most to an organisation and its stakeholders. Under the CSRD, materiality assessments must apply a double materiality lens, considering both financial and impact perspectives. The results shape what a company reports on and where it focuses its sustainability strategy.

Microplastics

Tiny plastic particles, typically smaller than 5mm, that result from the breakdown of larger plastics or are manufactured for use in products such as cosmetics and textiles. Microplastics are found in oceans, soil, drinking water, and the food chain, and are an area of growing regulatory and consumer concern.

N

Nature Positive

An emerging framework that aims to halt and reverse the loss of nature by 2030, measured against a 2020 baseline. Where net zero focuses on climate emissions, nature positive addresses biodiversity, ecosystems, and natural capital more broadly. The Kunming-Montreal Global Biodiversity Framework has given the concept increased policy weight.

Net Zero

The state in which greenhouse gas emissions produced are balanced by an equivalent amount removed from the atmosphere, resulting in no net increase. Achieving net zero requires deep emissions reductions across operations and value chains, with residual emissions addressed through verified removal methods. Most national and corporate net zero targets are set for 2050, with interim milestones.

P

Paris Agreement

The international treaty adopted in 2015 committing signatory nations to limit global warming to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit the increase to 1.5 degrees. The Paris Agreement replaced the Kyoto Protocol as the primary framework for global climate action and underpins national emissions reduction targets.

Pollution Prevention

Strategies that reduce or eliminate waste and pollutants at source, rather than managing them after they are created. Pollution prevention is considered more effective and cost-efficient than end-of-pipe treatment, and is a core principle in ecodesign and circular economy approaches.

R

Regenerative Design

An approach that goes beyond minimising harm to actively restoring and improving natural and social systems. Where sustainability aims to sustain current conditions, regenerative design seeks to leave systems in a better state than before. It is gaining traction in architecture, agriculture, and product development as a more ambitious alternative to conventional sustainability frameworks.

Renewable Energy

Energy generated from sources that replenish naturally, including solar, wind, hydro, and geothermal. The transition to renewable energy is central to decarbonisation and is increasingly driven by both policy requirements and cost competitiveness. Businesses often begin their sustainability journey by switching to renewable electricity procurement.

S

Science-Based Targets initiative (SBTi)

A partnership between CDP, the UN Global Compact, WRI, and WWF that provides companies with a framework for setting emissions reduction targets consistent with climate science. SBTi-validated targets are considered among the most credible commitments a company can make, and are increasingly expected by investors and large enterprise buyers.

Scope 1, 2, and 3 Emissions

The three categories used to classify greenhouse gas emissions in corporate carbon accounting. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from purchased energy. Scope 3 covers all other indirect emissions across the value chain, including supply chain, logistics, product use, and end-of-life. For most organisations, Scope 3 represents the largest share of total emissions and is the most difficult to measure.

Social Value

The broader economic, social, and environmental benefits generated by an organisation's activities, beyond direct financial value. In the UK, the Social Value Act requires public sector procurement to consider social value alongside cost. It is increasingly used as an evaluation criterion in tenders across both public and private sectors.

Supply Chain Due Diligence

The process of identifying, assessing, and mitigating environmental and human rights risks across an organisation's supply chain. Regulatory requirements such as the EU Corporate Sustainability Due Diligence Directive (CSDDD) are making this a legal obligation for larger companies, with implications for suppliers of all sizes.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The concept, defined in the 1987 Brundtland Report, underpins the UN Sustainable Development Goals and remains the foundational principle of most sustainability frameworks.

Sustainable Finance

Financial services and instruments that integrate environmental, social, and governance considerations into investment and lending decisions. Sustainable finance includes green bonds, sustainability-linked loans, and ESG-integrated funds. The EU Taxonomy provides the classification framework for what qualifies as a sustainable economic activity.

T

Task Force on Climate-related Financial Disclosures (TCFD)

A framework for reporting climate-related financial risks and opportunities, covering governance, strategy, risk management, and metrics. TCFD recommendations have been widely adopted and are now being incorporated into mandatory reporting standards through the International Sustainability Standards Board (ISSB).

Triple Bottom Line

A framework that measures organisational performance across three dimensions: people, planet, and profit. Coined by John Elkington in 1994, the triple bottom line challenged the idea that financial performance alone determines business success. It remains widely referenced, though Elkington himself has called for a more ambitious interpretation.

V

Value Chain

The full range of activities and processes involved in bringing a product or service from conception to end-of-life, including design, sourcing, manufacturing, distribution, use, and disposal. In sustainability, value chain thinking is essential for understanding Scope 3 emissions, supply chain risks, and opportunities for circular design.

W

Waste Hierarchy

A framework that ranks waste management options from most to least preferred: prevention, reuse, recycling, recovery, and disposal. The waste hierarchy is a core principle in EU waste legislation and circular economy strategies, and encourages organisations to prioritise avoiding waste over managing it after the fact.

Z

Zero Waste

A philosophy and design principle aimed at eliminating waste by rethinking how products are designed, manufactured, and consumed. Zero waste strategies focus on preventing waste at source rather than diverting it from landfill after creation. While true zero waste is aspirational for most organisations, the framework drives meaningful improvements in resource efficiency and circular design.

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