Sustainability glossary

B Corps are companies certified by B Lab for high standards of social and environmental impact, transparency and accountability. They aim to create value for all stakeholders, not just profit.

A benefit corporation is a legal form, recognised in Italy since 2016, that pursues by statute a benefit for society and the environment alongside profit. Every year it reports the impact generated.

Biomass is organic material (agricultural residues, wood, food waste) used to produce energy. When it ferments without oxygen it generates biogas, a renewable fuel similar to methane.

The blue economy is the economic model that uses the sea's resources sustainably: fishing, coastal tourism, marine energy and biotechnology. The goal is to create value without depleting the oceans.

Carbon accounting is the practice of measuring and monitoring the greenhouse gas emissions of a company or a product. It is the first step of any emission-reduction strategy.

The carbon budget is the amount of greenhouse gases we can still emit while staying within the temperature limits of the Paris Agreement. Every year of high emissions shrinks it.

Carbon capture is the technology that captures CO₂ before it reaches the atmosphere, or directly from the air, to store it underground or reuse it. It serves the sectors that are hardest to decarbonise.

The carbon cycle is the natural exchange of carbon between atmosphere, oceans, soil and living beings. By burning fossil fuels we release in a few decades the carbon the Earth accumulated over millions of years.

CO₂ equivalent is the unit of measurement that makes it possible to compare the different greenhouse gases by their impact on the climate, bringing everything to a common scale: tonnes of CO₂ equivalent.

The total greenhouse gases caused directly and indirectly by an organisation, product or service, expressed in tCO₂e.

Carbon offsetting makes it possible to compensate for one's emissions by funding projects that reduce them elsewhere, such as reforestation or renewable energy. It does not replace direct reduction, it complements it.

Carbon trading is a system for buying and selling CO₂ emission allowances. Those who pollute less than their limit can sell their surplus allowances, creating an incentive to cut emissions.

The circular economy is a model in which materials are repaired, reused and recycled instead of ending up in landfill. It stands in contrast to the linear 'take-make-dispose' model.

Climate action is the set of measures taken to counter climate change, from cutting emissions to adaptation. It is also the thirteenth UN Sustainable Development Goal.

Climate change is the long-term alteration of the climate caused by human activity: higher temperatures, extreme events, droughts and rising seas. The main cause is the build-up of greenhouse gases.

Being climate neutral means balancing all greenhouse gas emissions produced, not just CO₂, with equivalent removals or offsets. It is a broader concept than carbon neutrality.

CO₂ (carbon dioxide) is a gas naturally present in the air. The problem is the quantity: by burning fossil fuels we release so much of it that it traps heat and pushes temperatures up.

CO₂ absorption is the process by which forests, oceans and soils capture carbon dioxide and store it. Artificial technologies exist too, but nature remains the most effective system.

Corporate inclusion is the set of practices that guarantee equal opportunities to all people, regardless of gender, age, ethnicity or disability. It is a pillar of the social (S) dimension of ESG.

The CSRD is the European directive that requires companies to report their environmental and social impact. After the 2026 Omnibus reform it applies mainly to large companies (over 1,000 employees and €450 million in turnover).

Decarbonisation is the transition from an economy based on fossil fuels to one based on renewables. It includes electric vehicles, heat pumps and clean industrial processes.

Deforestation is the permanent loss of forests, often to make room for livestock and crops. It destroys habitats and releases into the atmosphere the carbon stored by trees.

Digital pollution is the environmental impact of devices, networks and online services. The digital sector produces about 4% of global emissions, more than aviation, and its share is growing.

Direct Air Capture is a technology that extracts CO₂ directly from the air, like a vacuum cleaner for the atmosphere. It is promising but still expensive and energy-hungry.

Direct emissions are the greenhouse gases produced by sources owned or controlled by the company, such as boilers, vehicles and internal processes. They correspond to Scope 1 emissions.

The DNSH principle ('Do No Significant Harm') states that an activity is not sustainable if, in pursuing one environmental objective, it seriously damages another. It is a key criterion for NRRP funds and the EU Taxonomy.

Assessing both how sustainability issues affect the company financially, and how the company affects people and the environment. A cornerstone of European sustainability reporting.

Eco-sustainability is the ability to live and produce within the planet's limits, without consuming resources faster than they regenerate. It concerns everyday choices as much as strategic decisions.

Ecodesign integrates environmental considerations from the earliest stages of product development: recyclable materials, lower consumption, ease of repair. Preventing impact is more effective than correcting it at end of life.

Ecosystem services are the benefits nature provides to people: clean air, water, food, flood protection. They have enormous economic value, even if it is hard to put on the books.

The emission factor indicates how many greenhouse gases are produced per unit of activity, for example per kWh consumed or kilometre travelled. It is used to calculate emissions and is updated periodically.

Environmental activism is the set of civic and political actions taken to protect the environment: demonstrations, campaigns, pressure on governments and legal action. It has inspired many of the climate policies of recent decades.

Environmental, Social, Governance: the three dimensions used to assess a company's sustainability beyond its financial statements.

ESG reporting is the public disclosure of a company's impact across three dimensions: environmental, social and governance. It is increasingly required by investors and regulation.

The ESRS are the European standards that establish which information companies must include in the sustainability report required by the CSRD. They make data comparable and verifiable.

The European classification that defines which economic activities can be considered environmentally sustainable.

Eutrophication is the excessive enrichment of nutrients in a body of water, often from agricultural or industrial discharge. It triggers uncontrolled algae growth that consumes oxygen and suffocates the aquatic ecosystem.

The Formulario di Identificazione dei Rifiuti: the Italian document accompanying waste transport, a key data source for reporting.

The GHG Protocol is the international reference standard for measuring and reporting greenhouse gas emissions. It underpins the Scope 1, 2 and 3 classification adopted by most companies.

The Gold Standard is a rigorous standard for carbon credits, founded with the support of WWF. It guarantees that the emission reduction is real and that the project delivers concrete benefits to local communities.

Green claims are the environmental statements companies use in advertising or on packaging (e.g. '100% eco-friendly'). From 2026 EU rules require them to be based on verifiable evidence.

The green economy is a model that grows the economy while reducing environmental impact, rewarding efficiency, renewables and social equity. It does not give up growth, it redefines it.

Green hosting is a web hosting service that reduces the environmental impact of servers by using renewable energy or offsetting emissions. It matters more and more as digital consumption grows.

Greenhouse gases trap heat in the atmosphere, like the glass of a greenhouse. The main ones are CO₂, methane and nitrous oxide: in excess they cause global warming.

Greenwashing is the practice of projecting an ecological image that does not match reality, relying more on 'green' marketing than on concrete action. From September 2026 the EU Empowering Consumers directive bans generic, unverifiable environmental claims.

Guarantees of origin are certificates attesting the renewable origin of the electricity consumed. They allow a company to prove it uses clean energy.

Hydroelectric energy turns the force of moving water into electricity. It is the world's leading renewable source of electric power generation.

Indirect emissions are the greenhouse gases linked to a company's activities but not under its direct control: purchased energy, suppliers, transport and product use. They include Scope 2 and Scope 3.

ISO 14001 is the international standard certifying an effective environmental management system. It attests that the company controls and reduces its impacts in a structured way.

The Kyoto Protocol, signed in 1997, was the first binding international climate agreement. It was later superseded by the more ambitious and universal 2015 Paris Agreement.

LEED is the world's most widespread certification system for sustainable buildings. It assigns a score based on energy efficiency, water use and material quality, up to the Gold and Platinum levels.

Logging is the large-scale felling of trees. Unlike deforestation it can be temporary if followed by replanting, but it still interrupts the forest's ecological cycle.

Climate mitigation means reducing greenhouse gas emissions and increasing the planet's capacity to absorb them. It differs from adaptation, which addresses the impacts already under way.

The Paris Agreement is an international climate treaty adopted in 2015. It aims to hold global warming well below 2°C above pre-industrial levels, while pursuing efforts to limit it to 1.5°C. Countries update their plans every five years.

PAS 2060 is an international standard defining how to demonstrate carbon neutrality credibly: measure emissions, reduce them, offset the remainder and have it verified by a third party.

The risks of damage tied to a changing climate: floods, heatwaves, droughts, landslides — assessed site by site with climate scenarios.

REDD+ is a UN programme that pays developing countries not to cut down their forests. It assigns an economic value to the environmental service forests provide to the planet.

The set of measurable actions and targets a company adopts to reduce its emissions over time.

Regeneration goes beyond sustainability: while the latter aims to 'do no harm', regeneration seeks to actively improve ecosystems and communities, giving back more than is taken.

Renewable energy comes from naturally regenerating sources such as sun, wind, water, geothermal heat and biomass, and produces very little CO₂. It is at the heart of every climate strategy.

Risk management is the process by which a company handles the threats that could hit it. In the ESG field it includes climate, physical and regulatory risks, to build resilience strategies.

The SBTi (Science Based Targets initiative) helps companies set 'science-based' emission-reduction targets, i.e. aligned with the 1.5 °C limit of the Paris Agreement.

Direct emissions from sources the company owns or controls: boiler fuel, company vehicles, industrial processes.

Scope 1 emissions are the direct emissions produced by sources controlled by the company, such as company plants and vehicles. They are the easiest to measure and the first to act on.

Indirect emissions from purchased energy: mainly the electricity the company buys and consumes.

Scope 2 emissions are the indirect emissions linked to the energy purchased and consumed by the company, such as electricity. They fall by switching to renewable energy suppliers.

All other indirect emissions along the value chain: purchases, logistics, business travel, waste, product use.

Soil degradation is the loss of fertility and vitality of the land caused by erosion, pollution or intensive exploitation. It threatens food production, biodiversity and carbon storage.

Solar energy uses the sun's rays to produce electricity (photovoltaic panels) or heat (thermal collectors). With plummeting costs it has become the cheapest source of energy in history.

Sustainability is the ability to meet the needs of the present without compromising those of future generations. It rests on three inseparable dimensions: environmental, social and economic.

Sustainable mobility aims to cut the impact of transport with electric public transit, cycle paths, sharing services and zero-emission vehicles. It does not limit freedom of movement, it redesigns it.

Sustainable procurement means choosing suppliers that respect the environment, workers and local communities. It ensures that the whole supply chain, not just the company, follows responsible standards.

In 2017 the TCFD developed a framework to help companies tell investors how they manage climate-related risks and opportunities. It has become a global reference.

Tonnes of CO₂ equivalent: the common unit expressing all greenhouse gases as the amount of CO₂ with the same warming effect.

Tree planting means putting new trees in the ground to absorb CO₂, protect the soil and support biodiversity. To be effective it requires local species, suitable areas and monitoring over time.

Verra's Verified Carbon Standard is the world's most widely used voluntary standard for carbon credits. It certifies that each credit truly corresponds to one tonne of CO₂ reduced or removed.

The VCU is the credit unit of Verra's VCS standard: it is worth one tonne of CO₂ equivalent reduced or removed by a certified project. Companies use it to offset residual emissions.

The VER is the credit unit of the Gold Standard and is worth one tonne of CO₂ equivalent. It stands out because projects must also demonstrate concrete social benefits for communities.

The voluntary European reporting standard for unlisted SMEs. It defines common indicators — emissions, energy, waste, workforce — to answer banks, clients and tenders with a single report.

The water footprint measures the total freshwater used to produce a good or service: one coffee takes about 140 litres. It is an increasingly crucial indicator in the face of water scarcity.

Wind energy harnesses the force of the wind to produce electricity through turbines, on land or at sea. It is a mature, affordable renewable with no emissions during operation.