Impact Glossary

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• Impact Businesses represent one category among a variety of types of enterprise that create positive socio-environmental impact. They combine specific characteristics that, together, bring a new way of being an entrepreneur and tackling socio-environmental problems.

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• Net Zero means not adding to the amount of greenhouse gases (GHG) in the atmosphere. Achieving it means reducing emissions as much as possible, and balancing out any that remain by removing an equivalent amount.

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• Decarbonisation is a general term for processes or actions taken to reduce, remove, and/or eliminate greenhouse gas emission caused by human activities.

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• Greenhouse Gas (GHG) is a gas that absorbs and emits radiant energy within the thermal infrared range, causing the greenhouse effect. The greenhouse gases specified in the Kyoto Protocol are: Carbon dioxide (CO 2), methane (CH 4), nitrous oxide (N 2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF 6), nitrogen trifluoride (NF 3).

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• A carbon footprint is defined as the total amount of greenhouse gases produced to directly and indirectly support human activities, usually expressed in equivalent tonnes of carbon dioxide (CO2).​

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• Carbon Negative means that activity goes beyond achieving net-zero carbon emissions to create an environmental benefit by removing additional carbon dioxide from the atmosphere.

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• Carbon Neutral means that any CO2 released into the atmosphere from a company’s activities is balanced by an equivalent amount being removed.

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• Climate Neutral refers to reducing all GHG to the point of zero while eliminating all other negative environmental impacts that an organisation may cause.

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• Climate Positive means the same thing as “carbon negative.”

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• Carbon Offset: By funding climate projects like tree planting, rainforest protection, and biochar, companies and individuals can support the removal of greenhouse gases from the atmosphere– and offset their carbon footprint.

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• Carbon Credit is a tradable permit or certificate that provides the holder of the credit the right to emit one tonne of carbon dioxide or an equivalent of another greenhouse gas – it’s essentially an offset for producers of such gases.

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• Voluntary carbon markets enable businesses, governments, nonprofit organisations, universities, municipalities, and individuals to offset their emissions outside a regulatory regime. These entities can purchase offsets that were created either through the voluntary or compliance markets.

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• Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.​

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• The Greenhouse Gas Protocol (GHG Protocol) is a private transnational set of standards for carbon accounting and reporting for business and increasingly for the public sector. The development of the GHG Protocol is coordinated by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

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• The Gold Standard (GS) is a standard and logo certification mark program for non-governmental emission reductions projects in the Clean Development Mechanism (CDM), the Voluntary Carbon Market and other climate and development interventions. It is published and administered by the Gold Standard Foundation, a non-profit foundation headquartered in Geneva, Switzerland. The Gold Standard certification process is a very stringent process that ensures that:​

  • There is evidence that the project has removed emissions from the atmosphere

  • The project would not have happened if not for being financed through the carbon offset market = additionality

  • The project will permanently ensure emissions reductions and permanent removal of emissions from the atmosphere

  • An expert third party consistently monitors the project to make sure that the emissions reductions continue to be observed throughout the lifetime of the project

  • There is no negative side effects of the project happening

  • That each project addresses a minimum of three sustainable development goals included SDG 13 Climate Action

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• The United Nations (17) Sustainable Development Goals (SDGs) are a call for action by all countries to promote prosperity while protecting the planet. They recognise that ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection.

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