Carbon dioxide equivalent (CO2e or CO2eq) is a metric measure used to compare the emissions from various greenhouse gases based on their global warming potential (GWP), by converting amounts of other gases to the equivalent amount of carbon dioxide.
Global Warming Potential (GWP) is a term used to describe the relative potency, molecule for molecule, of a greenhouse gas, taking account of how long it remains active in the atmosphere. The global warming potentials (GWPs) currently used are those calculated over 100 years. Carbon dioxide is taken as the gas of reference and given a 100-year GWP of 1.
Greenhouse gases (GHG) constitute a group of gases contributing to global warming and climate change. The Kyoto Protocol (and, consequently, the GHG Protocol) covers seven greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).
Greenhouse gas emissions per value added (GEVA) is a method for setting economic intensity targets using the contraction of economic intensity. Targets set using the GEVA method are formulated by an intensity reduction of tCO2e/USD value added.
Greenhouse Gas Protocol is a comprehensive global standardized framework for accounting and reporting GHG emissions.
Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for assessing science related to climate change. It comprises the world’s leading scientists and plays a unique role within climate science by policymakers with regular and authoritative scientific assessments based on the work of thousands of scientists worldwide.
Intergovernmental Panel on Climate Change Representative Concentration Pathways (RCPs) are models developed to forecast future carbon dioxide emissions and potential reductions in atmospheric concentration over the course of this century. These pathways offer a range of scenarios, from optimistic to pessimistic, depending on how carbon dioxide emissions might impact various sectors globally.
Intergovernmental Panel on Climate Change Shared Socioeconomic Pathways (SSPs) have been developed to complement the Representative Concentration Pathways (RCPs). They refer to five standard trajectories that represent possible future socioeconomic development for global or regional societies. These pathways, named SSP1 to SSP5, include scenarios such as Sustainability, Middle of the Road, Regional Rivalry, Inequality, and Fossil-fueled Development. They are used to assess and quantify the challenges related to mitigation and adaptation in different socioeconomic contexts.
Near-term science-based targets outline GHG emissions reduction over the coming 5 to 10 years that are in line with what climate science deems necessary to limit warming to 1.5°C above pre-industrial levels.
Net zero emissions are achieved when human-caused GHG emissions are balanced by removing the same quantity of emissions from the atmosphere over a specified period of time.
Science Based Targets initiative (SBTi) is a global initiative that supports companies in setting greenhouse gas (GHG) emissions reduction targets aligned with the latest climate science. It helps businesses establish targets aimed at limiting global temperature rise to well below 2°C above pre-industrial levels, with a preference for limiting it to 1.5°C, as specified in the Paris Agreement. The initiative offers a framework for setting targets based on current scientific data and methods, ensuring that corporate actions contribute to global climate objectives.
Scope 1 emissions are direct GHG emissions that occur from sources owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.
Scope 2 emissions account for GHG emissions from the generation of purchased electricity, steam, heat or cooling consumed by the company. Purchased electricity, steam, heat or cooling is defined as electricity, steam, heat, or cooling that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity, steam, heat, or cooling is generated. Scope 2 GHG emissions are calculated according to two methods: location-based (reflects the average emissions intensity of grids on which energy consumption occurs, using mostly grid-average emission factor data), and market-based (reflects emissions from electricity that companies have purposefully chosen, derives emission factors from contractual instruments).
Scope 3 emissions are a consequence of the activities of the company but occur from sources not owned or controlled by the company. They involve GHG emissions in the value chain of the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased goods; employee commuting; treatment of waste generated in own operations; and transportation of sold products.
Task force on climate-related financial disclosures (TCFD) provides a framework that outlines key principles for how companies and organizations should disclose information related to climate change risks and opportunities. Its recommendations focus on four main areas that are essential to organizational operations: governance, strategy, risk management, and metrics and targets.