Building Blocks Of Sustainability: Terms And Definitions
Part of being an inclusive leader is being curious, asking questions about things we don’t know or understand. Sustainability is one of the topics I want to know more about but have a hard time unpacking, specifically as it pertains to technology and the IT channel. Sensing that I am not alone in this, I created a list of basic terms and concepts for business leaders. Cheers to learning new things!
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Business sustainability. Also known as corporate sustainability, business sustainability is the ethical, responsible management of an organization's continued success with environmental, social, and financial concerns.
Carbon credit. Companies that create carbon offsetting initiatives receive a transferable or tradeable carbon credit or token. A credit represents the right to emit greenhouse gas and make up for it elsewhere. A credit means one ton of carbon dioxide is reduced or removed from the atmosphere. In practice, taking advantage of these credits lets owners reduce greenhouse gas emissions to get closer to net zero. The term also refers to purchase credits that will fund emission-reducing projects.
Carbon footprint. A carbon footprint measures the amount of carbon dioxide and methane produced by individuals, organizations, products, or practices.
Carbon neutral. The ideal balance between carbon dioxide emissions produced by human activity and carbon absorption by the atmosphere; the calculation should come to zero.
Carbon offset. A carbon offset is an activity or purchase intended to compensate for carbon emissions individuals and organizations produce. Carbon storage through tree planting or land restoration is a typical example. Businesses that create carbon offset programs receive carbon tokens.
Carbon token. A digital asset governed by a smart contract on a blockchain that represents a real-world reduction in one metric ton of carbon dioxide emissions. The asset exists to verify ownership and simplify the carbon credit trading process. Another example is a nonfungible token, or NFT, representing unique shares of captured carbon dioxide associated with a specific time and place. The dependence on blockchain technology to administer carbon tokens is controversial due to blockchain's energy-intensive processes.
Circular economy. The circular economy keeps products in circulation to the fullest extent possible by reducing material consumption, streamlining processes, and collecting waste for reuse.
Cleantech. Technologies and processes which limit negative environmental impacts, such as waste and carbon emissions, especially compared to fossil fuels. Examples of clean technologies- sometimes called green technologies or eco-technologies- include solar power, wind power, biofuels, recycling, and smart lighting.
Climate adaptation. The act of preparing for and adjusting to climate change's current and projected consequences. For example, cities can build seawalls to protect from rising sea levels.
Climate change. The shifts in the average temperature and weather patterns in specific locations over time. In particular, climate change has come to mean global temperatures rising from heat-trapping gases from mining and using oil, coal, and other fossil fuels. Climate change indicators include rising sea levels; the increase and severity of extreme weather, such as hurricanes, droughts, and floods; and ice loss at the Earth's poles.
Climate mitigation. The process of decreasing the flow of heat-trapping pollution. For example, reducing fossil fuel burning by using renewable energy sources may help.
Climate resilience. The ability to support a community, company, or the natural environment before, during, and after a climate event in a timely, efficient manner. Climate resilience differs from climate adaptation, but the two are often used synonymously.
Climate risk. As wildfires, droughts, food scarcity, hurricanes, and other climate change effects happen, businesses face increased vulnerability. Climate risk describes that vulnerability. It is the potential for climate change to create adverse effects on human or ecological systems. Risks fall into two main categories: risks based on the transition to a greener economy, such as losing market share by moving away from fossil fuel-based products, and risks related to the physical effects of climate change, such as flooded offices.
Closed-loop. A production process that reuses material waste to create additional products or repurpose recycled materials.
Conscious capitalism. Conscious capitalism is a socially responsible framework for capitalism in the corporate and political spheres. It emphasizes creating human value alongside profit value.
Corporate social responsibility (CSR). For-profit companies use the CSR business model to gauge social and environmental benefits alongside organizational goals such as profitability.
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Digital carbon footprint. The digital carbon footprint is the amount of greenhouse gas emissions digital devices, tools, and platforms produce. All tech, from cloud computing to mobile phones to internet usage, creates a digital carbon footprint.
Digital sobriety. Digital sobriety aims to limit the harmful environmental impact of smartphones, internet usage, digital media, and other tech from your daily habits. Moving toward digital sobriety includes many actions, from purchasing fewer devices, deleting emails, opting for lower-definition media consumption, sustainably developing software, and purchasing less-powerful machines.
Drawdown. A drawdown is when atmospheric greenhouse gas levels stop climbing and start declining.
Electronic waste (e-waste). Electronics are at or near the end of their useful life. Green tech and sustainability approaches seek to extend the useful life of devices and use circular economy principles to keep the amount of e-waste to an absolute minimum. The priority is first to reduce waste, then refurbish devices, and only then move toward recycling.
Energy efficiency. The same task or result is achieved with less energy. For example, heating, cooling, and operating appliances and electronics are less energy-intensive in energy-efficient homes and buildings.
Environmental justice. Environmental justice aims for fair treatment of all people regardless of race, color, national origin, or income equally regarding environmental laws, regulations, and policies. The approach holds that no group should bear a disproportionate share of negative environmental consequences.
Environmental, social, and governance (ESG). Sustainable and ethical interests that can be central to an organization's financial and corporate interests.
ESG framework. A set of objectives that companies can use to report on ESG issues. The process begins when an organization selects an ESG reporting method. Examples of standardized reporting frameworks include the following.
- CDP. A not-for-profit global environmental disclosure system for investors, companies, cities, states, and regions.
- Global Reporting Initiative. A nonprofit and independent standards organization that helps organizations report ESG impacts.
- Science-Based Targets Initiatives. A nonprofit partnership that helps private sector organizations set science-based emissions goals to uphold climate science and the Paris Agreement. The partnership is between the CDP, World Resources Institute, Worldwide Fund for Nature, and UN Global Compact.
- Sustainability Accounting Standards Board. A nonprofit that sets sustainability standards for numerous industries relevant to financial performance.
Feed-in tariff. A policy designed to accelerate investments in renewable energy. A policy of this type usually involves long-term government contracts.
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Global warming. Global warming refers to Earth's heating from trapped greenhouse gases resulting from human activities such as transportation, agriculture, overfishing, fossil fuel energy production, and overconsumption. Unless companies, governments, and consumers make significant shifts, global warming and climate change will heat the planet so much that it will be unlivable soon.
Green cloud. The green cloud refers to the possible environmental benefits for IT services delivered over the internet.
Green computing. The sustainable approach to using computing devices and equipment is green computing. Some methods include reducing resource use, responsible disposal of e-waste, and deploying energy-efficient IT equipment.
Green hushing. Green hushing involves companies intentionally hiding sustainability goals. Companies may do this for fear of greenwashing accusations or falling short of stated goals.
Green IT. Green IT is the practice of designing, manufacturing, operating, and disposing of IT products and devices to minimize the adverse effects of IT operations on the environment.
Green premium. Bill Gates defines green premium as the economic and environmental costs of choosing clean tech over financially sound options with higher greenhouse gas emissions.
Green software. Green software refers to applications designed, developed, and implemented in ways meant to minimize energy consumption and environmental effects.
Greenhouse effect. The result of carbon dioxide, methane, and nitrous oxides in Earth's atmosphere trapping the sun's heat.
Greenhouse gas (GHG) emissions. The sum of emissions of various heat-trapping gases. Greenhouse gases include carbon dioxide, methane, nitrous oxides, and fluorinated hydrofluorocarbons.
Greenhouse Gas Protocol. A globally recognized set of reporting and accounting frameworks for managing greenhouse gas emissions from private and public sector operations, value chains, and mitigation actions. Also referred to as carbon accounting.
Greenwashing. Greenwashing is deceptive, misleading or false claims or actions that an organization, product or service has a positive environmental effect. Whether intentional or unintentional, the practice is detrimental.
High emitters. A designation given to companies or countries that emit comparatively high volumes of greenhouse gas. Per capita emissions are used to measure the emissions of nations.
Impact investing. An investing strategy that directs money towards companies that create a measurable, positive change in the world. It also may be called socially responsible investing.
Impact sourcing. A sourcing strategy that directs employment and career development opportunities toward people from economically disadvantaged backgrounds.
Intergovernmental Panel on Climate Change (IPCC). The United Nations' body for evaluating scientific climate change information. The IPCC releases regular reports on climate impacts and risks offering options for mitigation and adaptation.
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Loss and damage. Climate-change-related consequences that people cannot adapt to, either because the result is too severe or because the affected community doesn't have access to the resources to adjust. It also refers to the impact of sudden natural disasters, such as floods, or gradual change, such as desertification.
Materiality assessment. A materiality assessment formally assesses stakeholders' commitment to specific ESG issues and calculates an organization's ESG score. It works by identifying the impact of a particular issue on a company's performance and competitiveness in the market.
Net zero. The result of lowering greenhouse gas emissions as close as possible to zero and balancing remaining emissions with removals.
Paris Agreement. The Paris Agreement is a legally binding international treaty on climate change that aims to limit global warming to a 1.5°C temperature increase by the end of the century. Originally adopted at the 2015 UN Climate Change Conference.
Recycling. The process of collecting and processing waste materials, ideally to make new products.
Responsible innovation. Responsible innovation prioritizes ethics and social responsibility in the research, design, and production of new technologies or evolutions of existing technology. Responsible innovation posits ethics as a design problem.
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Scope 1, 2, 3 emissions. Developed by the Greenhouse Gas Protocol, scopes give organizations a way to categorize their emissions. Organizations may find it easier to control scopes 1 and 2, but scope 3 emissions are the most difficult to track.
- Scope 1 emissions. The direct emissions generated by an organization's operations. Running machinery, manufacturing products, driving vehicles, heating buildings, and powering devices create emissions.
- Scope 2 emissions. The indirect emissions generated by an organization's energy purchase and usage. Investment in renewable energy sources may help lower these emissions.
- Scope 3 emissions. The indirect emissions generated by an organization's customer and supplier activities.
Supply chain traceability. In sustainability, traceability identifies, tracks, and traces materials and commodities and verifies sustainability claims across the value chain.
Sustainability. The ability to meet present needs without compromising the needs of future generations. Sustainability aligns with environmental protection, human well-being, and economic development.
Taskforce on Climate-Related Financial Disclosures (TCFD). TCFD develops voluntary climate risk disclosures. The recommendations are divided into operational categories: governance, strategy, risk management, and metrics and targets.
Triple bottom line (TBL). According to the TBL accounting framework, the bottom lines calculate financial performance alongside environmental and social effects.
Zero waste. Managing products, packaging, and materials responsibly to minimize environmental harm.
Photo by Chris Briggs on Unsplash