Carbon Accounting Glossary

Emissions data derived from specific activities such as fuel consumption, distance travelled, or energy used. Activity-based calculations provide more accurate emissions estimates than spend-based methods and are preferred for carbon reporting.

Greenhouse gas emissions from farming activities, including livestock methane, fertiliser nitrous oxide, and land use change. Agriculture accounts for roughly 10% of UK emissions.

Carbon emissions from aircraft operations, including CO₂ and non-CO₂ effects like contrails. Aviation is challenging to decarbonise due to limited alternatives to jet fuel for long-haul flights.

A reference year against which an organisation measures its emissions reductions over time. Choosing an appropriate baseline year is crucial for setting meaningful carbon reduction targets and tracking progress.

A certification for businesses that meet high standards of social and environmental performance, accountability, and transparency. B Corps must complete the B Impact Assessment and achieve a minimum score of 80 points.

Building Research Establishment Environmental Assessment Method, the world's leading sustainability assessment for buildings. BREEAM ratings help property developers demonstrate environmental performance.

Carbon emissions from employee travel for business purposes, including flights, trains, car journeys, and hotels. Business travel is typically a significant Scope 3 category for professional services firms.

The process of measuring, tracking, and reporting greenhouse gas emissions produced by an organisation. Carbon accounting helps businesses understand their carbon footprint, identify reduction opportunities, and meet regulatory requirements such as SECR and Scope 3 reporting.

The total amount of greenhouse gases produced directly and indirectly by an individual, organisation, event, or product, expressed as carbon dioxide equivalent (CO₂e). A carbon footprint includes emissions from energy use, travel, supply chain, and waste.

A standard unit for measuring carbon footprints that expresses the impact of different greenhouse gases in terms of the amount of CO₂ that would create the same warming effect. This allows comparison of emissions from different sources.

A state where an organisation's net carbon emissions equal zero, typically achieved through a combination of emission reductions and carbon offsets. Carbon neutral differs from net zero as it allows greater use of carbon offsets.

A documented commitment to achieving net zero by 2050, including current emissions data, reduction targets, and planned actions. UK government suppliers bidding for contracts over £5 million must publish a Carbon Reduction Plan.

Credits purchased to compensate for emissions by funding projects that reduce, avoid, or remove greenhouse gases elsewhere. Examples include reforestation, renewable energy projects, and methane capture. One offset typically equals one tonne of CO₂e.

Tradeable certificates representing the right to emit one tonne of carbon dioxide or equivalent greenhouse gas. Carbon credits can be traded on voluntary or compliance markets and are used to meet emission reduction obligations.

The process of capturing carbon dioxide from the atmosphere and storing it permanently. Carbon removal methods include afforestation, bioenergy with carbon capture and storage (BECCS), direct air capture, and enhanced weathering.

A global non-profit that runs the world's largest environmental disclosure system. CDP enables companies, cities, and regions to measure and manage their environmental impacts, with data used by investors and purchasers.

An economic model that designs out waste through reuse, repair, remanufacturing, and recycling. Circular economy principles help manufacturers reduce both material use and carbon emissions.

Carbon emissions from refrigerated transport and storage of perishable goods. Cold chain emissions include refrigerant leaks as well as energy consumption for cooling.

Carbon emissions associated with using cloud-based services and infrastructure. Cloud emissions depend on the energy efficiency of data centres and the carbon intensity of their electricity supply.

The amount of carbon dioxide emitted per unit of energy or economic output. Carbon intensity is commonly expressed as grams of CO₂ per kWh of electricity or kg CO₂ per pound of revenue.

Scope 3 emissions that occur after a product or service leaves an organisation. This includes transportation and distribution, processing of sold products, use of sold products, end-of-life treatment, leased assets, franchises, and investments.

UK government emission factors published annually by the Department for Energy Security and Net Zero. These conversion factors help UK businesses calculate their carbon footprint from activities like energy use, travel, and waste disposal.

The process of reducing carbon dioxide emissions from energy systems, industrial processes, and other activities. Decarbonisation strategies include energy efficiency, electrification, renewable energy, and process changes.

Carbon emissions from digital activities including data storage, cloud computing, video calls, and email. While individual actions are small, digital emissions can be significant at organisational scale.

Carbon emissions from facilities that house computer systems, including servers, storage, and networking equipment. Data centres consume significant electricity for computing and cooling.

Coefficients that quantify the greenhouse gas emissions produced per unit of activity. Examples include kg CO₂e per kWh of electricity, per litre of fuel, or per pound spent. DESNZ publishes UK-specific emission factors annually.

A mandatory UK energy assessment scheme for large organisations. ESOS requires qualifying businesses to conduct audits of their energy use every four years and identify cost-effective energy efficiency measures.

A framework for evaluating an organisation's environmental stewardship, social responsibility, and governance practices. ESG factors are increasingly used by investors, customers, and regulators to assess business sustainability.

The total greenhouse gas emissions from the extraction, manufacture, transport, and assembly of materials used in a product or building. Embodied carbon is distinct from operational emissions that occur during use.

A UK certificate rating the energy efficiency of buildings from A to G. EPCs are required when buildings are sold or rented, and minimum standards apply to commercial properties.

Carbon emissions from employees travelling between home and work. Employee commuting is a Scope 3 category that can be addressed through remote working, cycling schemes, and public transport incentives.

Vehicles powered by electric motors rather than internal combustion engines. EVs produce zero direct emissions and can significantly reduce fleet carbon footprints when charged from renewable energy.

The total emissions from organising and hosting an event, including venue energy, attendee travel, catering, materials, and accommodation. Event organisers increasingly offset or reduce these emissions.

Discarded electronic equipment and devices. E-waste contains valuable materials and hazardous substances, making proper recycling important for both environmental and carbon reasons.

Using less energy to perform the same task or produce the same output. Energy efficiency improvements reduce both costs and carbon emissions, often providing quick payback periods.

A policy approach requiring producers to take responsibility for end-of-life management of their products. EPR schemes incentivise sustainable design and help fund recycling infrastructure.

The distance food travels from production to consumption. While transport contributes to food carbon footprints, production methods often have a larger impact than transportation distance.

Carbon emissions from food that is produced but not consumed. Food waste in landfill produces methane, while wasted food also represents embodied emissions from production and transport.

Carbon emissions from an organisation's vehicle fleet, including cars, vans, and trucks. Fleet emissions are typically Scope 1 for owned vehicles and can be reduced through electrification and route optimisation.

Gases that trap heat in the atmosphere, contributing to global warming. The main greenhouse gases are carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases. The Kyoto Protocol identifies seven GHGs for reporting purposes.

A measure of how much heat a greenhouse gas traps in the atmosphere over a specific time period, relative to carbon dioxide. For example, methane has a GWP of 28-36 over 100 years, meaning it is 28-36 times more potent than CO₂.

The Greenhouse Gas Protocol is the world's most widely used international accounting standard for measuring and managing greenhouse gas emissions. It provides frameworks for corporate, value chain, and product emissions accounting.

A certification standard for carbon offset projects that ensures they deliver verified climate and sustainable development benefits. Gold Standard projects must demonstrate additionality and stakeholder consultation.

The practice of making misleading or unsubstantiated claims about environmental benefits. UK regulators including the CMA and ASA have issued green claims guidance to help businesses avoid greenwashing.

Certifications that recognise venues meeting environmental standards, such as ISO 20121 for sustainable events. Green certifications help organisers choose lower-impact venues for meetings and events.

Software designed to minimise energy consumption and carbon emissions. Green software practices include efficient code, reduced data transfer, and optimising for low-carbon electricity availability.

The process of reducing the carbon intensity of electricity grids through increased renewable generation and reduced fossil fuel use. UK grid carbon intensity has fallen significantly in recent years.

The total greenhouse gas emissions from hotel operations, including energy use, water heating, laundry, food service, and guest transportation. Hotels can reduce emissions through energy efficiency and renewable energy.

Heating systems that move heat from outside air, ground, or water into buildings. Heat pumps are highly efficient and produce significantly lower emissions than gas boilers, especially when powered by renewable electricity.

Carbon reduction or removal projects implemented within an organisation's own value chain rather than through external offset projects. Insetting creates direct benefits for the business while reducing supply chain emissions.

An international standard for quantifying and reporting greenhouse gas emissions. ISO 14064 provides a framework for organisations to develop GHG inventories and verify their emission claims.

Strategies to reduce carbon emissions from manufacturing and heavy industry. Approaches include electrification, hydrogen fuel, carbon capture, and process innovation.

A Scope 2 calculation method that reflects the average emissions intensity of the local electricity grid. This method uses grid average emission factors and shows what emissions would be if no renewable energy was purchased.

A comprehensive method for assessing the environmental impacts of a product or service throughout its entire life cycle. LCAs consider raw material extraction, manufacturing, distribution, use, and disposal.

Carbon emissions from the final leg of product delivery to the customer's door. Last mile delivery typically accounts for a significant portion of logistics emissions, particularly for e-commerce businesses.

Production methods that minimise waste while maximising productivity. Lean practices often reduce energy use and emissions through efficiency improvements and reduced material waste.

Concrete formulations that reduce carbon emissions through alternative materials, carbon capture during curing, or reduced cement content. Standard concrete production accounts for roughly 8% of global emissions.

Carbon emissions from the transportation, warehousing, and distribution of goods. Logistics emissions include fuel consumption, vehicle emissions, and energy use in distribution centres.

A Scope 2 calculation method that reflects emissions based on the electricity an organisation has chosen to purchase, such as renewable energy tariffs. This method uses supplier-specific emission factors and renewable energy certificates.

A process for identifying and prioritising the sustainability issues most relevant to an organisation and its stakeholders. Materiality assessments help focus reporting and strategy on the most significant impacts.

Changing from one mode of transport to another with lower emissions, such as switching freight from road to rail or encouraging cycling instead of driving.

Achieving a balance between greenhouse gas emissions produced and emissions removed from the atmosphere. Net zero requires deep emission reductions across Scope 1, 2, and 3, with residual emissions addressed through carbon removal rather than offsets.

Carbon emissions from the energy used to operate a building, including heating, cooling, lighting, and appliances. Operational carbon can be reduced through energy efficiency and renewable energy.

The carbon emissions from energy consumed in office buildings, including electricity, heating, and cooling. Office footprints can be reduced through efficient equipment, smart controls, and renewable energy.

The total greenhouse gas emissions generated throughout the life cycle of a product, from raw material extraction to end-of-life disposal. PCFs help businesses understand and reduce the environmental impact of their products.

A British Standard specification for demonstrating carbon neutrality. PAS 2060 sets out requirements for quantifying emissions, reducing them, and offsetting residual emissions to achieve carbon neutral status.

Procurement Policy Note 06/21 requires UK government suppliers bidding for contracts over £5 million to publish a Carbon Reduction Plan and commit to achieving net zero by 2050. This policy drives Scope 3 reporting requirements.

Carbon emissions associated with the purchase of goods and services. Procurement decisions significantly impact Scope 3 emissions and offer opportunities to reduce carbon footprint through sustainable sourcing.

Greenhouse gas emissions from the production, use, and disposal of product packaging. Retailers can reduce packaging emissions through material substitution, lightweighting, and designing for recyclability.

Greenhouse gas emissions released directly from industrial processes, separate from energy combustion. Examples include CO₂ from cement production and chemical reactions in steel manufacturing.

Food products that replace animal-derived ingredients with plant-based options. Plant-based foods typically have lower carbon footprints than animal products, particularly beef and dairy.

A long-term contract to buy electricity directly from a renewable energy generator. PPAs provide price certainty and enable organisations to claim renewable energy consumption for Scope 2 reporting.

UK certificates that prove electricity was generated from renewable sources. REGOs enable organisations to claim renewable electricity consumption and reduce their Scope 2 emissions using the market-based method.

Carbon emissions generated when customers return products, including reverse logistics, repackaging, and disposal. Online retailers typically have higher return rates, making this a significant Scope 3 category.

Carbon emissions from extracting and processing raw materials used in manufacturing. Raw material emissions often represent a major component of a product's total carbon footprint.

Upgrading existing buildings with energy efficiency improvements such as insulation, double glazing, and efficient heating systems. Retrofitting reduces operational carbon and can be more sustainable than demolition.

Farming practices that restore soil health, sequester carbon, and enhance biodiversity. Regenerative agriculture can help food businesses reduce supply chain emissions and build climate resilience.

Energy from sources that are naturally replenished, including solar, wind, hydroelectric, and biomass. Switching to renewable energy is one of the most effective ways to reduce Scope 2 emissions.

The proportion of a product or material made from recycled rather than virgin materials. Using recycled content typically reduces embodied carbon compared to virgin material production.

Direct greenhouse gas emissions from sources owned or controlled by an organisation. Examples include emissions from company vehicles, on-site fuel combustion in boilers and furnaces, and refrigerant leaks from air conditioning systems.

Indirect greenhouse gas emissions from the generation of purchased energy consumed by an organisation. This includes electricity, steam, heating, and cooling purchased from utility providers. Scope 2 can be calculated using location-based or market-based methods.

All other indirect emissions occurring in an organisation's value chain, both upstream and downstream. Scope 3 typically represents 70-90% of a company's total carbon footprint and includes emissions from suppliers, business travel, employee commuting, and product use.

A method that estimates carbon emissions based on financial expenditure in different categories. Spend-based calculations apply average emission factors to spending data, providing useful estimates when detailed activity data is unavailable.

Emission data provided directly by suppliers about their products or services. This is the most accurate method for calculating Scope 3 emissions but requires supplier engagement and may involve product carbon footprints or life cycle assessments.

Emission reduction targets aligned with the level of decarbonisation required to keep global temperature increase to 1.5°C above pre-industrial levels. The Science Based Targets initiative (SBTi) validates corporate targets.

A partnership between CDP, UN Global Compact, WRI, and WWF that helps companies set emission reduction targets aligned with climate science. SBTi validates corporate net zero commitments and science-based targets.

UK legislation requiring large companies and LLPs to report their energy use and carbon emissions in their annual reports. SECR applies to organisations meeting two of three criteria: 250+ employees, £36m+ turnover, or £18m+ assets.

The practice of disclosing an organisation's environmental, social, and governance performance. Sustainability reports help stakeholders understand a company's impact and progress towards sustainability goals.

Greenhouse gas emissions generated by suppliers in the production and delivery of goods and services. Supply chain emissions typically fall under Scope 3 and often represent the largest portion of a company's carbon footprint.

The process of working with suppliers to measure, report, and reduce their carbon emissions. Effective supplier engagement is essential for accurate Scope 3 reporting and achieving supply chain decarbonisation.

The carbon emissions from energy used in retail stores, including lighting, heating, cooling, and refrigeration. Retail energy footprints can be reduced through LED lighting, efficient HVAC, and renewable energy.

Procurement practices that consider environmental and social impacts alongside cost and quality. Sustainable sourcing helps retailers reduce Scope 3 emissions and meet customer expectations for ethical products.

Food service practices that minimise environmental impact through local sourcing, reduced meat, waste minimisation, and sustainable packaging. Catering choices significantly impact event and venue carbon footprints.

Carbon emissions from video and audio streaming services, including data transmission and device energy use. While individual streaming sessions have small footprints, aggregate emissions are significant.

The Task Force on Climate-related Financial Disclosures provides recommendations for companies to disclose climate-related risks and opportunities. TCFD reporting is becoming mandatory for large UK companies.

Scope 3 emissions that occur in the supply chain before a product or service reaches an organisation. This includes emissions from purchased goods and services, capital goods, fuel and energy activities, transportation, waste, business travel, and employee commuting.

The UK's carbon market that replaced EU ETS participation after Brexit. UK ETS caps emissions from energy-intensive industries and power generation, requiring participants to hold allowances for their emissions.

The full range of activities needed to create a product or service, from raw material extraction through production, delivery, use, and end-of-life disposal. Understanding your value chain is essential for accurate Scope 3 emissions reporting.

The world's most widely used voluntary GHG program. VCS provides a robust quality assurance standard for carbon offset projects, ensuring they deliver real, measurable, and permanent emission reductions.

The total carbon emissions from a building over its entire life cycle, including materials, construction, operation, maintenance, and demolition. Whole life carbon assessments are increasingly required for major developments.

Carbon emissions from employees working remotely, including home energy use and equipment. While WFH reduces commuting emissions, it can increase household energy consumption.

The total carbon emissions from fuel production through to vehicle use. Well-to-wheel analysis provides a complete picture of transport emissions, including fuel extraction, refining, and combustion.

Greenhouse gas emissions from waste management activities including landfill, incineration, and recycling. Landfill waste produces methane, a potent greenhouse gas.

A framework prioritising waste management options from most to least preferred: prevent, reuse, recycle, recover energy, dispose. Following the waste hierarchy minimises environmental impact.

A target to divert all waste from landfill through recycling, composting, energy recovery, or reuse. Zero waste to landfill reduces methane emissions and demonstrates resource efficiency.