CI3 Glossary of Terms

Carbon Footprint

A carbon footprint is a way of measuring the amount of greenhouse gases, primarily carbon dioxide (CO₂), released into the atmosphere as a result of human activities. These gases contribute to global warming and climate change. A carbon footprint can pertain to individuals, households, companies, products, or events, and is typically expressed in CO₂ equivalents — meaning the weight of CO₂ and other emitted greenhouse gases (such as methane, nitrous oxide, and halogenated hydrocarbons) converted into the amount of CO₂ that would have the same warming effect.

The calculation of greenhouse gas emissions should follow internationally recognized standards (e.g., GHG Protocol or ISO norms).

One of the core activities of our company CI3 is the calculation of the carbon footprint for businesses and products. However, we also have experience in calculating the carbon footprint of specific events, such as the ESG Leadership Conference 2023.

Carbon Footprint of a Business

The carbon footprint calculation focused on the activities of the entire company. It determines the amount of greenhouse gases corresponding to the business's production activities, expressed in CO₂ equivalents.

Carbon Footprint of a Product

The carbon footprint of a product is a measure of the total amount of greenhouse gas emissions released throughout the life cycle of a product or service.

Greenhouse Gas Emissions

Greenhouse gas emissions refer to the release of various types of gases into the atmosphere that have the ability to trap thermal radiation from the Earth's surface, contributing to the greenhouse effect. The most well-known greenhouse gas is carbon dioxide (CO₂), produced by the burning of fossil fuels (coal, oil, gas) and other human activities. Other important greenhouse gases include methane (CH₄), released during agriculture and landfills, and nitrous oxide (N₂O), which primarily comes from the use of nitrogen fertilizers.

These greenhouse gases cause some of the solar heat reflected from the Earth's surface to be trapped in the atmosphere. This leads to global warming, resulting in climate changes, such as altered precipitation patterns and other ecological and meteorological phenomena. Reducing greenhouse gas emissions is crucial to mitigating these impacts and protecting the environment for future generations.

Carbon and Climate Neutrality

Carbon neutrality (also known as "net-zero") refers to a state where the net greenhouse gas emissions from a given source, such as a country, company, or individual, are reduced to zero. This means that any emissions are either completely eliminated or offset through measures to reduce emissions, such as reforestation or investments in projects that remove CO₂ from the atmosphere, like carbon capture and storage (CCS) or renewable energy projects. These offsetting methods are often referred to as "offsets." You can learn more about Czech offset projects in the CI2 sister company’s OFFSETUJEMECO2 project.

Climate neutrality goes a step beyond carbon neutrality. When a country commits to climate neutrality, it automatically includes carbon neutrality within this broader goal.

The aim of carbon neutrality is to reduce the impact of human activities on climate change and ecosystems. Organizations, cities, regions, and even countries often commit to achieving carbon neutrality by a specific date to contribute to global efforts to protect the environment and limit global warming. According to the Intergovernmental Panel on Climate Change (IPCC), in order to keep the effects of global warming under control, we need to limit the temperature rise to a maximum of 1.5°C. Achieving climate neutrality by 2050 is key to this effort. This goal was also set by the 2015 Paris Agreement on climate change, signed by 195 countries, including the EU.

Offsets

Offsets are mechanisms or projects designed to compensate for greenhouse gas emissions produced by one entity by reducing or removing emissions elsewhere. Examples include reforestation, renewable energy, energy efficiency, and carbon capture and storage projects. Organizations or individuals purchase offsets to balance their emissions, thereby contributing to the achievement of carbon neutrality.

You can learn more about Czech offset projects in the OFFSETUJEMECO2 project by our sister company CI2.

Decarbonization

Decarbonization, in the context of climate change and energy, refers to efforts to reduce or eliminate greenhouse gas emissions, especially carbon dioxide (CO₂), produced by human activities such as burning fossil fuels (coal, oil, gas). The main goals of decarbonization are: reducing CO₂ emissions, increasing energy efficiency, developing and implementing carbon capture and storage technologies, and achieving an overall more environmentally friendly operation (e.g., reducing water consumption, recycling, eco-friendly transportation, etc.).

Mitigation

Mitigation refers to actions aimed at reducing or alleviating negative impacts. In the context of climate change, mitigation involves efforts to decrease or limit greenhouse gas emissions into the atmosphere to reduce global warming and its effects. This may include measures such as transitioning to renewable energy sources, improving energy efficiency, protecting and restoring forests, supporting sustainable agricultural practices, and innovating in carbon capture and storage technologies.

Adaptation

Adaptation in the context of climate change refers to the process of adjusting to the current or expected impacts of climate change. The goal of adaptation is to reduce vulnerability to negative impacts, increase resilience, and take advantage of potential opportunities. This may include measures such as improving infrastructure, changing agricultural practices, strengthening health systems, protecting coastlines from rising sea levels, and planning urban development in response to climate change. Adaptation is crucial for safeguarding communities, economies, and ecosystems from the harmful effects of climate change.

GHG Protocol

The Greenhouse Gas Protocol is an international standard for determining and reporting greenhouse gas emissions.

It is widely used in initiatives and platforms like Science Based Target (SBTi), Carbon Disclosure Project (CDP), and the Global Reportin Initiative (GRI), aligning with the commitments of the Paris Agreement.

The corporate standard divides emissions into Scope 1, Scope 2, and Scope 3.

Scope 1

Includes direct emissions from activities that are directly under the control of the organization, such as emissions from owned combustion facilities, vehicles, and chemical processes.

Scope 2

Includes indirect emissions related to the electricity consumed by the organization. These emissions arise from the production of the electricity and heat that the organization purchases.

Scope 3

The broadest category, which includes other indirect emissions that occur within the organization's supply chain (e.g., raw material production, goods transportation, waste management), as well as emissions associated with the use of the organization's products and services (e.g., employee business travel).

Market-based vs. Location-based Emissions

Market-based and location-based approaches are two different methods for calculating greenhouse gas emissions from purchased electricity used in reporting emissions according to the GHG Protocol.

Location-based emissions calculate emissions based on the average emission intensity of the electricity grid in a specific geographic area.

Market-based emissions account for specific electricity purchases, such as contracts for renewable energy, and allow organizations to report lower emissions if they use low-emission or zero-emission sources.

ISO 14064

ISO 14064 is a series of international standards developed by the International Organization for Standardization (ISO). It represents a relatively new segment of the ISO 14000 family of standards, providing guidelines for the quantification, reporting, and removal of greenhouse gases.

The ISO 14064 standard consists of three complementary components. ISO 14064-1 outlines the requirements for planning, implementation, management, reporting, and verification of greenhouse gas inventories for organizations. The second part of the standard (14064-2) sets requirements for monitoring and reporting emissions reductions or increases in greenhouse gas sequestration achieved through projects and/or project-based activities. The third part (14064-3) establishes principles and requirements for verifying greenhouse gas inventories and for validating and verifying greenhouse gas projects.

ISO 14067

ISO 14067 is an international standard focused on quantifying the carbon footprint of products. This standard provides guidelines for measuring the greenhouse gas emissions associated with the production, distribution, use, and disposal of products. The goal of ISO 14067 is to support organizations in improving the environmental performance of their products and allow consumers to make informed decisions based on transparent carbon footprint data.

ESG

Environmental, Social, and Governance (ESG) criteria evaluate companies based on their environmental impact, social responsibility, and governance practices. Investors increasingly consider ESG criteria, regulatory bodies implement new disclosure requirements, and consumers prefer responsible companies. Good ESG practices improve a company's reputation and provide a competitive advantage. Overall, ESG supports sustainable and responsible business practices.

CDP

The Carbon Disclosure Project (CDP) is an independent nonprofit organization that collects data on carbon emissions and other environmental indicators from companies worldwide. This data is analyzed and provided to investors, the public, and other stakeholders. CDP plays a crucial role in supporting transparency and responsible trading by encouraging corporate reporting on carbon footprints and environmental impacts.

CI3 is the official expert partner of CDP for the Czech Republic and Slovakia. For more information about CDP and its various stages, you can read our article CDP is the Next Step for Sustainable Companies in the Blog section.

SBTi

The Science Based Targets initiative (SBTi) is a joint initiative of several organizations aimed at helping companies set science-based emissions reduction targets. SBTi provides methodologies and tools that enable companies to determine how much emissions they need to reduce to contribute to the Paris Agreement goal of limiting global warming to 1.5°C to 2°C. This initiative supports companies in transitioning to more sustainable operations and contributes to the global fight against climate change.

Ecovadis

EcoVadis is a global platform for assessing supplier sustainability. It provides tools and methodologies to evaluate companies' environmental, social, and ethical practices. EcoVadis assesses companies based on their policies, actions, and results in these areas, providing detailed reports and scores that help businesses identify risks and opportunities within their supply chains. The evaluation is based on 21 criteria and divided into four areas: environment, labor and human rights, ethics, and sustainable procurement. This platform promotes transparency and sustainability in business, enabling companies to improve their ESG performance.

CI3 currently holds the EcoVadis bronze medal, which we are very proud of. We are also pleased to lead by example for our clients.

Směrnice NFRD

The Non-Financial Reporting Directive (NFRD) is EU legislation that requires large publicly traded companies, banks, and insurance companies with more than 500 employees to disclose information about their environmental and social impacts, human rights, and anti-corruption measures. The goal is to increase transparency and accountability and provide better insight into non-financial risks and opportunities for investors and other stakeholders.

Směrnice CSRD

The Corporate Sustainability Reporting Directive (CSRD) is a proposed EU directive that expands and tightens the non-financial reporting requirements established by the NFRD. It extends disclosure requirements to more companies, demands more detailed and standardized information on ESG factors, and introduces independent verification and a digital format for reports.

CBAM

CBAM stands for Carbon Border Adjustment Mechanism. It is a tool introduced by the European Union aimed at reducing the carbon footprint of imported goods and supporting global efforts to cut emissions. CBAM imposes fees on imported products based on the amount of CO₂ emissions generated during their production. The mechanism is designed to level the playing field between European and foreign producers and encourage foreign manufacturers to adopt more sustainable production practices. CBAM is an important step in the fight against climate change and in promoting environmentally responsible global trade.

EU Taxonomy

The EU Taxonomy is a classification system that defines which economic activities are environmentally sustainable. It provides clear criteria for assessing the sustainability of activities, supports investments in green projects, and is part of the EU's strategy for sustainable finance. The goal is to support the transition to a sustainable economy and achieve the Green Deal objectives for Europe.