The Ultimate Sustainability Jargon Buster

The world of sustainability is bursting at the seams with confusing jargon and endless acronyms, with new terminology appearing each year. So, our True Crew have put together this handy jargon buster you can refer to next time these key sustainability terms pop up in a meeting or email! 

Sustainability 

First of all, what exactly is sustainability? Put simply, it means operating in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs. This is achieved by balancing environmental, social and economic factors. 

ESG 

Short for Environmental, Social and Governance, ESG is a framework for holistically assessing an organisations sustainability. It measures a company's impact on the environment and society as well as how transparent, accountable and robust its governance mechanisms are. 

The components of ESG have emerged as core values of organisations around the world, with investors and boards increasingly using ESG disclosure information to analyse business performance and risks. 

GHGs 

Greenhouse gases (GHGs) are gases that absorb and trap heat from the sun in the Earth's atmosphere. The main naturally occurring GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and water vapour. However, there are also GHGs solely created during industrial processes, namely hydrofluorocarbons (HFCs), sulphur hexafluoride (SF6) and perfluorocarbons (PFCs). 

The potency of GHGs varies but the increasing atmospheric concentration of all GHGs is man-made and contributes to the global warming ‘Greenhouse Effect’. GHGs are expressed in terms of carbon dioxide equivalent, CO2e, to allow for standardised comparison and simplify emissions reporting. 

Carbon Footprint 

A carbon footprint is a measure of the total greenhouse gasses (GHGs) emitted into the atmosphere as a result of all the business activities. They are usually quoted in kg or tonnes of CO2e. 

Scope Emissions 

The Greenhouse Gas (GHG) Protocol, the most widely used emissions accounting standard globally, categorises carbon emissions in three scopes: 

Scope 1: Direct emissions from sources that are owned or controlled by your company. 

Scope 2: Indirect emissions generated from purchased electricity, steam, heating and cooling consumed by your company. 

Following the Guidance from the GHG Protocol, Scope 2 emissions must be reported in two ways: a location-based method and a market-based method. The location-based method reflects the local grid-average emissions intensity where the consumption occurs, whereas the market-based method takes into account the specific electricity purchased and derives emissions factors from contractual instruments, such as REGOs. 

Scope 3: All other indirect emissions from all activities, both upstream and downstream your company’s value chain, that are not covered by Scopes 1 and 2. The GHG Protocol identifies 15 categories of Scope 3 emissions, and all relevant to your company should be accounted for. 

Check out our blog here for tips on how to track, measure and reduce your scope emissions. 

GHG Protocol 

The Greenhouse Gas Protocol is the globally recognised standard for emissions reporting. It provides the foundational structure for classifying and measuring Scope 1, 2 and 3 emissions and underpins most sustainability reporting frameworks and tools used today. For any organisation serious about decarbonisation, aligning with the GHG Protocol is essential. 

Net Zero 

Net Zero refers to an overall balance between greenhouse gas (GHG) emissions and removals, leaving zero in the atmosphere.  

For your business, achieving Net Zero means reducing at least 90% of your GHG emissions, across all three scopes and balancing the remaining 10% with carbon offsetting or removal measures. 

Net Zero is different to Carbon Neutral which focuses solely on CO2 emissions and is achieved using carbon offsets to ensure an activity or process does not add to the net volume of CO2 in the atmosphere. Net Zero is a broader, more ambitious goal, often used to set comprehensive climate targets. 

Science Based Targets Initiative (SBTi) 

The Science Based Targets initiative, known as SBTi, is a global body enabling businesses to set GHG emissions reductions targets and commitments in line with the latest climate science. 

Science-based targets (SBTs) provide a clear and credible pathway for businesses to accelerate their decarbonisation journey in line with the Paris Agreement goal of limiting global warming to 1.5˚C. The SBTi Corporate Net Zero Standard gives companies guidance to set SBTs consistent with what is required to halve global emissions before 2030 and achieve net-zero before 2050. 

SDGs 

The Sustainable Development Goals (SDGs) were adopted by the UN in 2015. The 17 SDGs are a universal call for action, for developed and developing countries, to end poverty, protect the planet and ensure that everyone enjoys peace and prosperity by 2030. 

The SDGs recognise that action in one area will affect outcomes in others and that development must balance social, economic and environmental sustainability. An integrated, global partnership is necessary to achieve them in every context. 

Every year, an SDG progress report is presented by the UN Secretary General based on national statistical data and information collected at regional level. 

COP 

COP stands for Conference of the Parties to the UNFCCC; the UN annual global conference focused on climate change. Delegates from around the world convene for negotiations, discussions and international collaboration with the fixed objective of delivering universal  

Interested in the key outcomes of COP30 last month? Read our round-up here. 

Carbon Capture and Storage (CCS) 

Carbon Capture and Storage (CCS) refers to the technologies that capture CO2 emissions produced by industrial processes or power generation and permanently store them deep underground in suitable geological formations. 

CCS consists of three stages: capture, transport and storage. It includes capturing CO2 from both large point sources before it is emitted, and also directly from the atmosphere. It can be used to balance emissions that are unavoidable or technically difficult to abate, particularly in heavy industries. 

The newest iteration of CCS; Carbon Capture, Utilisation & Storage (CCUS) focuses on practical applications for the captured CO2 to be converted into valuable products, such as concrete. 

CCS is a tool that will be instrumental in limiting global warming but is not an alternative to reducing GHG emissions on your road to Net Zero, rather it is there as a solution for that final proportion of hard-to-abate carbon emissions. 

Greenwashing 

Greenwashing making unsubstantiated or misleading claims about the environmental impact of a product, service, technology or company practice to deceive consumers. In short, greenwashing can make a company appear to be more environmentally friendly than it actually is. 

From April 2025, the UK government has introduced tough new measures to tackle greenwashing. The Competition and Markets Authority (CMA) now has the power to fine companies up to 10% of their global turnover for making misleading environmental claims. 

Wondering how you can stay compliant and credible in the age of greenwashing? Check out our practical steps here.

The UK and EU have some specific legislative and technical terms that you may also regularly encounter: 

REGOs 

The Renewable Energy Guarantees of Origin (REGO) scheme verifies the origin of energy to prove it was generated from renewable sources. Certificates, called REGOs, are issued by Ofgem to generators for each MWh of eligible renewable electricity produced. These REGOs are purchased by suppliers, either bundled with their energy sales or bought separately, and then sold to energy consumers to prove the credibility of their green electricity tariffs. Put simply, one REGO represents 1MWh of renewable electricity supplied to the grid. 

REGOs are labelled according to the technology used to generate the electricity such as solar, wind, hydro or biomass and are required to evidence that an electricity supply is renewably sourced for emissions reporting. Purchasing REGO-backed electricity enables organisations to reduce their carbon footprints, specifically Scope 2 emissions. 

RGGOs 

Renewable Gas Guarantees of Origin, RGGOs, are the gas equivalent of REGOs. RGGO certificates are issued by the Green Gas Certification Scheme (GGCS) when a kWh of gas produced by a renewable source is injected into the gas distribution grid. RGGOs are unique identifiers containing information about the injection date, gas production facility and the biomass feedstock used to produce the gas. The green gases included in RGGOs are biomethane, bio propane and hydrogen. 

Unsure if REGOs are the right option for your company? Check out our experts’ advice on rethinking your REGO strategy here. 

ESOS 

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme enforced by the UK Environment Agency for qualifying organisations. ESOS is designed to assess the energy consumption of your buildings, industrial processes and transport, and identify cost-effective opportunities for energy savings. 

Introduced in 2014, organisations that qualify must undertake assessments every 4 years and ESOS is currently in Phase 4 of audits. 

Is your company input into ESOS? Our True Crew experts can support with PU2 submission and Phase 4 assessments. Get in touch here. 

SECR 

The UK's Streamlined Energy and Carbon Reporting (SECR) policy was implemented in 2019 and requires organisations to share energy consumption and carbon emissions in their annual Director's or Trustees' Report. 

Quoted companies of any size and all unquoted companies and LLPs defined as 'large' by the UK government are mandated to comply with SECR. 

CCL 

The Climate Change Levy (CCL) is a tax charged on energy used by UK businesses, designed to increase sustainability. It encourages businesses to be more energy efficient and reduce greenhouse gas emissions. 

CCL is a two-rate tax charged on commodities used for heating, lighting and power purposes, such as natural gas, electricity, petroleum and coal. Any business in the industrial, public services, commercial and agricultural sectors is subject to the CCL. 

CCA 

Climate Change Agreements (CCAs) are voluntary agreements between industries and the UK government. CCAs give eligible businesses with energy-intensive processes a significant discount on the CCL in return for achieving sector-specific energy efficiency targets.  

The Environment Agency administers the voluntary CCA scheme for the entire UK and it has most recently extended the scheme to March 2027. 

CSRD 

Introduced by the EU, CSRD mandates robust sustainability disclosures for thousands of companies operating in Europe. It requires detailed reporting of Scope 1, 2 and 3 emissions, along with third-party assurance and alignment to the EU’s sustainability taxonomy. Phased implementation began with large, listed companies from FY 2024. 

ETS 

Emissions Trading Systems (ETS) is a market-based approach to control GHG pollution. It sets a cap on GHG emissions from heavy industries, power and aviation sectors and creates a market for trading carbon allowances, incentivising decarbonisation. Free allocations of a proportion of allowances are currently granted to energy-intensive, trade-exposed industries, shielding them from carbon leakage risk. An ETS ensures that emissions are reduced where it is most cost-effective to do so. 

The EU ETS, the first international ETS, was set up in 2005 and the UK ETS has been in place since 2021, replacing the UK’s participation in the EU ETS post-Brexit. However, this May, the UK Government and European Commission announced their commitment to link their respective ETSs. 

CBAM 

A Carbon Border Adjustment Mechanism (CBAM) is designed to prevent carbon leakage. This occurs when companies relocate production to countries with less stringent emissions regulations, undermining global emission reduction efforts. A CBAM imposes a carbon price on imports of certain goods, ensuring that foreign producers face the same costs as domestic producers under an ETS. This levels the playing field and encourages global adoption of cleaner production methods. 

Looking ahead, the UK CBAM is due to start on January 1, 2027, while the EU CBAM will come into force from January 1, 2026. There are notable differences between the two CBAMs, namely coverage and financial mechanism design. 

Paris Agreement 

The Paris Agreement refers to the legally binding international treaty adopted in 2015 at the COP21 talks in Paris. Under this agreement, all 196 parties are required to cut GHG emissions to try to limit global warming to 'well below 2.0˚C above pre-industrial levels' and 'pursue efforts to hold the temperature increase to 1.5˚C'. 

Since coming into force in November 2016, all COPs have used the Paris Agreement as the benchmark for the majority of discussions and the obligatory NDCs are one of the primary instruments for achieving the warming goals. 

NDCs 

Nationally Determined Contributions (NDCs), are the individual national climate pledges required under the Paris Agreement. NDCs are self-defined and detail how each country will reduce GHG emissions to help limit global warming to 1.5C, adapt to climate change impacts and ensure sufficient finance to achieve their plan. 

NDCs must be updated every 5 years and countries should strengthen their commitments each round, in line with the latest climate science. 

TCFD 

The Task Force on Climate-Related Financial Disclosures (TCFD) was formed by the Financial Stability Board in 2017 to develop recommendations to improve climate-related financial reporting. The TCFD created a guiding framework for providing information on the financial risks and opportunities associated with climate change, mapped against already existing disclosures. 

Globally, organisations incorporate the TCFD recommendations and principles into their climate change policies and the UK government mandated TCFD-aligned disclosure for large, private entities. 

Having fulfilled its purpose, the TCFD was officially disbanded in November 2023 and the monitoring of companies' progress on disclosures has been taken over by the International Financial Reporting Standards (IFRS). 

ISSB 

The International Sustainability Standards Board (ISSB) was established by the IFRS foundation in 2021 to standardise and enhance the transparency of global sustainability reporting, in response to growing demand from the G20. 

Formed to better align global regulations, the ISSB's primary objectives include developing standards for a global baseline of sustainability disclosures, enabling companies to deliver comparable and comprehensive decision-useful information for investors and facilitating interoperability with broader disclosures. 

ISSB's published standards consolidate and build on the Integrated Reporting Framework, Climate Disclosure Standards Board (CDSB), Sustainability Accounting Standards Board (SASB) and TCFD. The inaugural standards became effective on January 1, 2024. 

IFRS S1 & S2 

IFRS S1: General Requirements for Disclosure of Sustainability-Related Financial Information 

The main objective of this Standard is to enable companies to disclose all information about sustainability-related risks and opportunities that they could reasonably face over the short, medium and long term. The information provided is based on the four pillars set out in the TCFD recommendations as well as the required industry-based information. 

IFRS S1 serves as a foundational framework for sustainability disclosures, which should be used with IFRS S2 and future ISSB Standards. 

IFRS S2: Climate-Related Disclosures 

This Standard focuses on specific climate-related information, setting out requirements for the disclosure of climate-related risks and opportunities, including climate-related metrics and targets. 

IFRS S2 fully integrates the TCFD recommendations and builds on the requirements of IFRS S1, as the two Standards are designed to be applied together. 

CDP 

CDP is a not-for-profit charity (formerly known as the Carbon Disclosure Project) that operates an independent global environmental disclosure system for investors, companies, supply chain, cities, states and regions. It focuses on reporting environmental risks, opportunities and impacts relating to climate change, water and forests and each disclosing entity receives a score.  

Submitting through CDP is voluntary, but widely regarded as a best practice and increasingly requested by stakeholders, from clients to shareholders. 

UNFCCC 

The United Nations Framework Convention on Climate Change (UNFCCC) is a global agreement between 198 parties – 197 countries and the EU. It entered into force in 1994 with the ultimate aim to 'prevent dangerous human interference with the climate system'. 

The UNFCCC have annual international meetings, known as the Conference of Parties (COP), to focus on climate and negotiate new measures. 

For more jargon busters, visit our glossary & tips page.