This glossary of carbon regulation and reporting will help you to understand key terms.

Listed below are terms with definitions, and sometimes, with examples. The terms are grouped by topic, so that you can easily read and understand different topic areas. Links are also provided, where appropriate and helpful.

For fuller guidance on how to manage compliance with sustainability and carbon reporting, see theGuide to Sustainability & Carbon Reporting in Manufacturing.

Standards and Protocols

 Standards and Protocols provide frameworks and guidelines for measuring, managing, and reporting carbon emissions and other environmental impacts. These are essential for ensuring consistency, accuracy, and comparability in environmental performance data across organizations and sectors. 

GHG Protocol (Greenhouse Gas Protocol)

The GHG Protocolestablishes comprehensive global standardized frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains, and mitigation actions. 

ISO 14064-1

This is a standard for quantifying and reporting greenhouse gas emissions and removals at the organizational level. It provides a set of tools for programs to quantify, monitor, report, and verify GHG emissions. Read deeper intoISO 14064-1 on the ISO Org website.

PAS 2050

PAS 2050,  part of the GHG Protocol, is a methodology for quantifying the life cycle greenhouse gas emissions of goods and services. 

ISO 14001

ISO 14001is a set of international standards for environmental management systems – systems that help manufacturers monitor and enhance environmental performance. 

ISO 50001

ISO 50001is a set of international standards for energy management systems – systems that help manufacturers monitor and improve energy performance. 

GRI Standards (Global Reporting Initiative)

GRI Standardsprovide a global framework for sustainability reporting, including environmental metrics. GRI standards cover a variety of ESG areas, including Biodiversity and Anti-Corruption. GHG protocols, conversely, are focused exclusively on greenhouse gas emissions.

Regulations and Reporting Requirements

Regulations and Reporting Requirements are mandatory guidelines imposed by governments or regulatory bodies to ensure organizations disclose their environmental impact and adhere to certain standards of environmental performance. 

ESRS (European Sustainability Reporting Standards)

ESRS (European Sustainability Reporting Standards)are a set of standards developed by the European Financial Reporting Advisory Group (EFRAG). The ESRS lay out standards for sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD). 

CSRD (Corporate Sustainability Reporting Directive)

The CSRD (Corporate Sustainability Reporting Directive)is a directive by the European Union that extends the scope of sustainability reporting to more companies, requiring them to disclose detailed information on environmental, social, and governance (ESG) issues. 

TCFD (Task Force on Climate-related Financial Disclosures)

The TSFD (Task Force on Climate-related Financial Disclosures)was an organisation that developed standards for ensuring global compliance with financial disclosures about climate-related activities of corporations.

The TCFD provided recommendations for disclosing clear, comparable, and consistent information about the risks and opportunities presented by climate change. 

NFRD (Non-Financial Reporting Directive)

The NFRD (Non-Financial Reporting Directive)is an EU directive that requires certain large companies to disclose information on the way they operate and manage social and environmental challenges. 

SEC Climate Disclosure Rules

The SEC Climate Disclosure Rulesare regulations proposed by the U.S. Securities and Exchange Commission for mandatory climate risk disclosures by publicly listed companies. 

Disclosure and Benchmarking Frameworks

 Disclosure and Benchmarking Frameworks are tools and systems that enable organizations to report their environmental performance and compare it against industry standards or peer performance. 

CDP (Carbon Disclosure Project)

The CDP (Carbon Disclosure Project)is an organization that runs a global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts, particularly focusing on carbon emissions, water security, and deforestation. 

CDSB (Climate Disclosure Standards Board)

The CDSB (Climate Disclosure Standards Board)provides a framework for reporting environmental information with the same rigor as financial information. 

GRESB (Global Real Estate Sustainability Benchmark)

GRESB (Global Real Estate Sustainability Benchmark)assesses the ESG performance of real assets globally, including real estate portfolios and infrastructure assets. 

SASB (Sustainability Accounting Standards Board)

SASB (Sustainability Accounting Standards Board)provides industry-specific standards for disclosing financially-material sustainability information. 

Market Mechanisms and Border Adjustments

 Market Mechanisms and Border Adjustments are economic tools and regulatory measures designed to encourage reductions in carbon emissions through market-based incentives and regulations. 

CBAM (Carbon Border Adjustment Mechanism)

CBAM (Carbon Border Adjustment Mechanism)is a proposed EU measure to put a carbon price on imports of certain goods from outside the EU, aimed at preventing “carbon leakage” by ensuring that imported goods are subject to the same carbon costs as those produced within the EU. 

For a simple overview of how CBAM will work, see theGuide to EU CBAM Reporting for Manufacturers

ETS (Emissions Trading System)

ETS (Emissions Trading System)is a market-based approach to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Examples include the EU ETS and the California Cap-and-Trade Program. 

Carbon Offsets

Carbon Offsets are mechanisms for compensating for emissions by investing in projects that reduce or remove greenhouse gases from the atmosphere, such as reforestation or renewable energy projects. 

Carbon Tax

A tax levied on the carbon content of fuels to encourage the reduction of greenhouse gas emissions.

Manufacturers that choose to adopt practices that lower their overall carbon emissions can benefit from reductions in their Carbon Taxes. 

Goals and Initiatives

 Goals and Initiatives encompass various global, national, and organizational commitments and programs aimed at reducing carbon emissions and promoting sustainability. 

SDG (Sustainable Development Goals)

The SDG (Sustainable Development Goals)are a collection of 17 interlinked global goals designed to be a “blueprint to achieve a better and more sustainable future for all” by 2030. SDG 13 specifically focuses on climate action, including efforts to reduce carbon emissions. 

SBTi (Science Based Targets initiative)

SBTi (Science-Based Targets initiative)is an organization that helps companies set science-based targets to reduce greenhouse gas emissions in line with the latest climate science and the goals of the Paris Agreement. 

Companies like Volkswagen and the Ford Motor Company are using SBTi to further their climate aims. See afull list of SBTi companies here.

Paris Agreement

The Paris Agreementis an international treaty, developed by the United Nations, aiming to limit global warming to well below 2°C above pre-industrial levels, preferably to 1.5°C. 

RE100

RE100is a global initiative where influential businesses commit to 100% renewable electricity. 

Net Zero Initiative

TheNet Zero Initiativeis a set of various frameworks and pledges aimed at achieving net zero carbon emissions by a specified date, commonly by 2050. 

C40 Cities Climate Leadership Group

C40 Cities Climate Leadership Groupis a network of the world’s megacities committed to addressing climate change through various local initiatives. 

Contact Mavaricktoday to learn how we can help you turn sustainability into a competitive advantage.