ESG Investing Glossary

A naturally occurring greenhouse gas released through respiration, decomposition, combustion and industrial processes and removed by oceans, vegetation and other sinks.

A common unit that expresses the warming effect of different greenhouse gases relative to carbon dioxide using global warming potentials.

The total greenhouse gas emissions associated with an organisation, product, activity, event or person within a defined boundary.

A system in which emissions allowances or carbon credits are issued, bought, sold or retired.

A claim that a defined amount of greenhouse gas emissions has been balanced by reductions, removals or offsets over a stated period and boundary.

A carbon credit retired to compensate for emissions occurring elsewhere.

A monetary value assigned to greenhouse gas emissions through a tax, emissions trading system, internal price or market transaction.

A process that transfers carbon dioxide from the atmosphere and stores it in biological, geological, mineral or product reservoirs.

The capture and storage of carbon in forests, soils, oceans, geological formations or long-lived products.

A levy based on the greenhouse gas emissions or carbon content of fuels, products or activities.