Chapter 9: Standards, Protocols, and Certifications Vocabulary

Greenwashing

Modeled after the term “whitewashing,” this term describes the marketing practice of making unsubstantiated sustainability claims

International Organization for Standardization (ISO)

An international NGO that works with hundreds of national bodies to develop specifications for products, services, and systems. They have developed more than 21,000 international standards, including several that relate to sustainability: ISO 14000; ISO 19011; and ISO 26000.

ISO 14000

A family of standards that provide guidance on developing environmental management systems (EMS) (ISO 14001, ISO 14004, ISO 14006) and greenhouse gas reporting (14064).

Environmental Management System

This provides a framework for reaching sustainability goals through consistent control of operations, which includes a process for continuous improvement. In addition to offering certification under ISO 14001, ISO 14004 provides guidance for creating this. Many types of these follow the Plan > Do > Check > Act (PDCA) framework.

Lifecycle Assessment (LCA)

A tool to measure, assess and manage the performance of a product from raw materials through production, use, and end-of-life phases. The process entails compiling data on the inputs and outputs of a system, in order to evaluate the potential impacts that will result throughout its life cycle.

Greenhouse gas

When present in the atmosphere, these gases absorb and emit radiation within the thermal infrared range, contributing to the greenhouse effect. Certain of these, reported under the Kyoto Protocol, that result from human activities include: CO2, CH4, N2O, HFCs, SF6, NF3, PFCs, and HFCs. The IPCC Assessment Reports periodically update the gases that parties to the Kyoto Protocol must report upon.

ISO 19011

Provides guidance on internal and external auditing procedures for management systems.

ISO 26000

Provides guidance on the social responsibility of businesses and other organizations.

Social responsibility

This is the practice of incorporating social and environmental considerations into the decision-making process and being accountable for the impact of those decisions. Under ISO 26000 guidance, recognizing the stakeholder interests and incorporating those interests are a key element of its practice.

Cradle to cradle certification

A product certification that provides third-party assurance that a product has been designed and produced so its component parts may be used as inputs to new products.

Renewable energy

y This refers to energy production fueled by resources that nature can replenish at a rate equal to or greater than it is used. “Clean” energy further includes the ability of nature to absorb the emissions created during the life cycle of the fuel.

Ecolabel

A “sign or logo that is intended to indicate an environmentally preferable product, service or company, based on defined standards or criteria”. Depending on the certification standards, their reliability will vary.

GHG Protocol

Developed by World Resources Institute (WRI) and World Business Council on Sustainable Development (WBCSD), this protocol provides a global standard for measuring, managing, and reporting on greenhouse gas emissions. In addition to their Corporate Standard, they provide industry specific guidance on Scope 3, Supply Chain, Product Life Cycle, and reduction Project accounting.

Organizational boundaries

When developing a GHG inventory, an organization performs an assessment of this to determine the method by which they will consolidate their emissions inventory—using either an equity or control approach.

Operational boundary

When developing a GHG inventory, an organization performs an assessment of this to determine which direct and indirect emissions are a consequence to operations and therefore must be reported upon.

CDP (Carbon Disclosure Project)

Drives the disclosure of measurement information to improve the way companies manage their environmental risk over the long-term. They work with nearly 1,000 institutional investors to report Climate, Water, and Deforestation impacts, as well as, the performance of Supply Chains. In addition, their public sector program works with cities, states and regions to improve environmental performance.

Verified Carbon Standard (VCS)

This global standard is used to develop credible voluntary carbon unit (VCU) credits.

Carbon credits

Instruments used to trade carbon emissions among parties in either the voluntary or compliance markets.

Ceres

A global coalition of investors and environmental and social advocacy groups supporting investment, policy, and business leadership in order to promote sustainability.

Global Reporting Initiative (GRI)

This is a standards body that puts forth criteria for sustainability reporting, in partnership with global organizations focused on quality, environment, and economics. Their sustainability reporting framework is used by a majority of the world's largest corporations.

Communication of Progress (CoP)

At a minimum, signatories to the UNGC must produce one of these each year. The document reinforces corporate commitment to the UNGC and describes the measurable results of actions taken over the prior year.

Intellectual capital

The International Integrated Reporting Council (IIRC) describes this as “organizational, knowledge-based intangibles”, which includes intellectual property, systems and procedures, and brand reputation.

Environmental product declarations (EPDs)

This document provides consumers with quantifiable LCA data on the environmental impact associated with a given product. Following the ISO 14025 product category rules (PCR), it is used to compare the relative impact of similar products.

UN Global Compact (UNGC)

Launched in 2000, this initiative helps businesses adopt practices and policies that align with its ten principles on human rights, labor, environment and anti-corruption. This is the largest corporate sustainability initiative in the world; with over 12,000 organizations based in 145 countries are signatories.

Indirect emissions

Emissions that result from the activities of a reporting entity, but occur at sources owned or controlled by another entity. They are associated with the purchase of electricity.

Scope 1

This group of emissions encompasses direct emissions from sources within the reporting entity’s organizational boundaries. It includes such emissions as derived from burning natural gas onsite, refrigerant leakage, and company owned vehicle emissions.

Scope 2

This refers to the indirect emissions that result from the use of grid-supplied electricity

Scope 3

These emissions are the result of activities that happen throughout the value chain, outside an entity’s direct control. Examples include employee commuting, freight, and supplier impacts.

Base year

In corporate GHG accounting, this is a specific year (or an average over multiple years) against which an organization’s impacts are tracked over time.

Baseline

This term refers to emissions levels represented by the status-quo-ante in GHG Project Accounting. To evaluate project additionality (including GHG emissions reductions, removals, or storage), a project accountant develops various scenarios against this point in time.

Materiality

A fundamental principle of financial disclosure, this test (as defined by the US Supreme Court) determines whether there is “a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly altered the ‘total mix’ of information made available”.

Direct emissions

Emissions derived from sources that are owned or controlled by a reporting entity. This may include emissions from onsite combustion in boilers, furnaces, vehicles, etc., as well as emissions from chemicals in process equipment (e.g. fire suppression or refrigeration equipment. Direct emissions are reported under either Scope 1 or Scope 3.