Glossary
Let’s get some clarity
on the words of sustainability.
The UN Agenda 2030 for Sustainable Development is an action programme for people, the planet and prosperity signed in 2015 by 193 Member Countries of the United Nations.
Adaptation, as defined by the IPCC, refers to the adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities.
An (ESG) assessment refers to the systematic evaluation of an organization’s performance in areas related to environmental impact, social responsibility and governance practices.
A B Corp (Certified B Corporation) is a company that has attained B Corp certification. The certification is voluntary and issued by B Lab, a nonprofit set up in the United States with the mission to promote a business model which could create value for society, people and the environment and not just shareholder profit.
A benchmark analysis or assessment is a comparative analysis used to measure the performance of a company and its peers (competitors, clients, other players) against specific criteria.
A Benefit Corporation (BC) is a company with an innovative business model: whereas traditional companies exist with the sole objective of generating dividends for shareholders, benefit corporations extend their purpose to include a positive impact on society, people and the planet.
Biodiversity means the multiplicity of living organisms on Earth, including the variety of ecosystems in which they live. This richness includes the genetic variety within the population of a species, the variety of species within an ecosystem and the variety of ecosystems in any given region. Speaking of richness, variety and diversity, we are referring not only to the millions of plants, microorganisms, animals, genes and habitats, but also to the extraordinary abundance of interactions which occur among them and, in general, to the complexity of relations between the different components of an ecosystem.
Cause-related marketing (CRM) is a Corporate giving tool which involves a clear and transparent collaboration between a company and a nonprofit organisation (NPO).
The classic scenario is where the company undertakes to make a donation of a percentage of the earnings from one of its products to the NPO, perhaps for a specific project.
The main advantages to the nonprofit organisation are a boost to fundraising and increased visibility. The main advantage for the company is a boost to their reputation or brand image.
Climate change means long-term variations in temperatures and weather events. Such variations may occur naturally but since the nineteenth century, human activity (e.g. burning coal, oil and gas, intensive livestock farming, use of fertilizers, deforestation) have been the main cause of climate change.
Climate crisis refers to the significant and urgent challenges resulting from climate change, such as rising global temperatures, increased frequency of extreme weather events and the loss of biodiversity. This situation demands immediate action to mitigate its environmental and social impacts. Effective solutions require global cooperation and the adoption of sustainable and transformative practices to safeguard the planet for future generations.
You can find more information in Climate change.
CO2 (carbon dioxide) is an inert, odourless, colourless gas naturally present in the atmosphere in limited concentrations (250 to 500 ppm, parts per million). Since the pre-industrial age (first half of the 18th century) CO2 emissions connected with human activities have gradually increased causing an accumulation of this greenhouse and therefore contributing significantly to global warming.
The term "CO2 equivalent" (or "CO2e") is used to express the combined effect of all greenhouse gas (GHG) emissions in a single unit in order to be able to evaluate and compare the climate impact of different emissions.
COP, or the Conference of the Parties, is an integral part of the process of negotiation and governance in the context of the United Nations Framework Convention on Climate Change (UNFCCC).
A Corporate Carbon Footprint (CCF) or “GHG Accounting” is a measure which expresses in CO2 equivalent the total greenhouse gas emissions associated with one year of activity of a company across its entire value chain.
Corporate giving or corporate philanthropy refers to a wide range of activities engaged in by companies to support social or environmental causes.
This may include monetary donations, programmes involving employees (Employee Engagement) in social or environmental projects, contributions in kind (goods or services), sponsorships, Cause-Related Marketing initiatives and partnerships with nonprofits. The goal of Corporate giving is to generate a positive impact on society, responding to social, environmental and economic challenges.
The Corporate Sustainability Reporting Directive (CSRD) (Directive EU 2022/2464) entered officially into force in January 2023 and replaces the previous Non-Financial Reporting Directive (NFRD) (Directive 2014/95/EU), implemented in Italy by Legislative Decree no. 254 30 December 2016 concerning the obligation for large companies to communicate information of a non-financial nature.
In a Life Cycle Assessment (LCA) it is possible to assess the environmental impacts of a product or service from two perspectives: cradle-to-gate or cradle-to-grave.
In a Life Cycle Assessment (LCA) it is possible to assess the environmental impacts of a product or service from two perspectives: cradle-to-gate or cradle-to-grave.
Corporate Social Responsibility (CSR) is a management concept where companies integrate social and environmental concerns into their operations and stakeholder interactions. It aims to balance economic, environmental, and social imperatives— known as the “Triple Bottom Line”. Unlike charity or philanthropy, CSR represents a strategic approach to sustainable business that meets the expectations of shareholders and stakeholders while contributing to broader societal goals.
Decarbonization is the process through which governments, businesses and individuals work together to significantly reduce GHG emissions, primarily by decreasing reliance on fossil fuels, which are key drivers of climate change.
These are three closely linked concepts. ‘Diversity’ is understood as variety and richness of differences among people, whether to do with gender, sexual orientation, provenance, ability or any other traits.
A materiality assessment is a process used to identify, assess and prioritise ESG issues deemed most critical to an organisation. In a double materiality, the inside-out (impact materiality) perspective is broadened with the other side of coin, outside-in (financial materiality).
Find the information you are looking for in Materiality assessment.
Ecodesign is a design approach which takes into account environmental considerations. In particular, the scope is to minimise the environmental footprint of products, processes or services throughout their entire life cycle.
Employee engagement is the degree of involvement of the employee with the organisation for which they work. Companies nowadays are highly engaged on this internal front because an employee who feels like an active and integral part of their workplace and shares its goals and values will also be more productive and efficient.
Emissions refer to the release of substances, particularly gases or particles, into the atmosphere.
These substances can come from various sources, including industrial activities, transportation, agriculture and natural processes. Commonly discussed in the context of environmental science, emissions often refer to pollutants or greenhouse gases that contribute to air pollution and climate change.
You can find more information in Greenhouse Gases Emissions (GHG).
An Environmental Product Declaration (EPD) is a document which – in a transparent way – provides credible and comparable information on the environmental performance of a product or service. This is a voluntary environmental labelling, subject to control and certification by a third-party body and defined in standard UNI EN ISO 14025.
ESG is the acronym for Environmental, Social, Governance. This term is used to describe the set of criteria investors and companies consider when evaluating the sustainability performance of a particular organisation. They are criteria which therefore go above and beyond the financial aspects.
The European Financial Reporting Advisory Group (EFRAG) is a European body which plays a crucial role not only in accounting standards and financial reporting but also providing technical advice to the European Commission, offering consultancy on matters concerning international standards.
In July 2023 the European Commission adopted the first set of European Sustainability Reporting Standards (ESRS), issued by EFRAG and in force since January 2024. These are mandatory standards for companies within the scope of CSRD and means that in line with the timelines, these companies will be obliged to draft their sustainability report in compliance with these standards.
In the context of sustainability, a framework usually refers to a structured approach or strategy that guides organizations in implementing sustainable practices and achieving sustainable targets. It encompasses vision and principles, goals, actions and metrics. Frameworks facilitate decision-making, assess progress and ensure accountability, ultimately fostering a holistic approach to achieving sustainable development goals.
You might find more information of interest in Sustainability Framework.
Gender equity means equality between men and women and the elimination of discrimination based on gender. This equality must be on all levels: rights, responsibility, treatment, economic and social opportunity.
The GHG Protocol or Greenhouse Gas Protocol is a global initiative developed by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) with the goal of providing standardised guidelines for the measurement and management of greenhouse gas emissions (GHG).
Global Reporting Initiative (GRI) is a nonprofit international organisation set up to help businesses to assess their sustainability performance and report within the framework of transparent and harmonised standards.
There are a number of different greenhouse gases (GHG). Normally their emissions are measured in CO2 equivalent and derive mainly (but not only) from the burning of fossil fuels. The release of these gases into the atmosphere causes what is called the “greenhouse effect” and consequent heating of our planet.
In general, the word hotspot is used to refer to a point, category, area or any context that shows particularly intense, concentrated or significant characteristics compared to its surroundings.
Speaking about sustainability, the term impact refers to the effects human activities have on the environment, society and people.
The Intergovernmental Panel on Climate Change (IPCC) is the main international scientific organisation for assessing the science related to climate change. It was founded in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP) with a view to providing a clear, science-based picture of the state of the art of knowledge about climate change and its environmental and socio-economic impact.
The International Organization for Standardization (ISO) is an independent, non-governmental international organization that develops and publishes voluntary standards across various industries and sectors.
Life Cycle Assessment (LCA) is a method used and recognised the world over to assess the environmental impacts and performance of a product, process, service or event over its life cycle. It constitutes a crucial tool for companies: based on clear metrics with a holistic approach, it allows an organisation to identify hotspots and impact drivers and thus make informed decisions to improve environmental performance from an eco-design perspective.
A materiality assessment is a process used to identify, assess and prioritise ESG issues deemed most critical to an organisation. Material topics – the most important ones – need to be addressed in the sustainability plan. The fundamental idea is that a company concentrate its efforts where its impact is greatest
The Non-Financial Reporting Directive (NFRD) or Directive 254/14/EU (2014), transposed into Italian law by D.lgs. 254/2016, introduced mandatory non-financial reporting for public interest entities: Banks, Insurance Companies, listed companies and all bodies pursuant to art. 16, para. 1 of Legislative Decree 39/2010.
Particulate matter (PM) refers to very small solid and liquid particles emitted during the combustion of fossil and biomass fuels. These particulates can consist of a wide variety of substances and originate from sources such as industrial emissions, construction activities, and natural events like wildfires.
In the context of ESG, preservation refers to the proactive efforts to maintain and protect natural resources, ecosystems and cultural heritage from degradation or loss. This involves implementing practices that conserve biodiversity , prevent pollution, combat climate change and ensure the sustainable use of resources, thereby supporting long-term environmental health and social well-being.
A Product Carbon Footprint (PCF) expresses – in CO2 equivalent – the amount of greenhouse gas emissions generated across the life cycle of a product (or service, process, event), in this way providing a clear picture of its impact on global warming.
Product Category Rules (PCR) define the requirements – specific for every category of product and/or service – for drafting an Environmental Product Declaration (EPD). A PCR is developed by the interested parties in coordination with Programme Operators (in Italy, the only one currently in operation is EPD Italy whereas the best known in Europe is Environdec).
The Product Life Cycle refers to the series of stages a product undergoes throughout its entire lifespan, from raw material extraction through production, distribution, use and disposal. This framework helps organizations evaluate the environmental and social impacts at each stage, ensuring a comprehensive understanding of these impacts throughout the product’s life and enabling the identification of opportunities for improvement.
You might find more information of interest in Life Cycle Assessment (LCA).
A GHG reduction plan or decarbonisation plan is a strategic document which outlines the initiatives and actions a company intends to carry out over time in order to reduce greenhouse gases produced by its business activities
A GHG reduction target is a specific, quantifiable goal set to reduce greenhouse gas emissions over a given period. These targets represent the commitments a company makes to contribute to global efforts to combat climate change.
SBTi is the acronym of Science-Based Targets initiative (SBTi).
At an international level, Science-Based Targets (SBTs) today represent one of the approaches most recognised and frequently used by companies for setting GHG emissions reduction targets. This is a methodology developed and promoted by Science-Based Targets initiative (SBTi), a joint initiative of CDP, UN Global Compact, WRI and WWF.
Science-Based Targets initiative (SBTi) is a joint initiative of Carbon Disclosure Project (CDP), UN Global Compact, World Resources Institute (WRI) and World Wide Fund for Nature (WWF). SBTi supports companies in the process of defining Science-Based Targets (SBTs), i.e. greenhouse gas emissions reduction targets in line with the most recent scientific knowledge about climate action.
The GHG Protocol Standard classifies greenhouse gas emissions quantified in a Corporate Carbon Footprint according to three types: Scope 1, Scope 2 and Scope 3 emissions.
Stakeholder engagement means all those activities carried out by an organisation in order to involve key stakeholders in crucial or material topics.
Stakeholder engagement is a critical tool especially when it becomes a systemic approach.
Sustainable Development Goals (SDGs) are a set of 17 global goals adopted by the United Nations in September 2015. They are part of Agenda 2030 for Sustainable Development, a global action plan aimed at addressing crucial challenges and promoting sustainable development.
A sustainability plan (or “ESG Plan”, also known as “Sustainability Framework”) is a strategic document which guides the action of an organisation – over a given time period – in relation to ESG topics.
The sustainability report is an essential tool that allows companies to assess, manage and monitor their sustainable performance with a view to continual improvement and also communicate it in a way that is credible.
In the context of ESG, targets are specific, measurable goals set by organizations or governments to achieve sustainable development objectives. Targets are used to promote and track progress and ensure accountability.
You might find more information of interest in Reduction targets.
The UNFCCC or United Nations Framework Convention on Climate Change is an international treaty adopted during the United Nations Earth Summit in Rio de Janeiro in 1992.
The UNI/PdR 125:2022 sets out the guidelines of a management system aimed at consolidating the internal policies of an organisation which generates and promotes gender equality.
From a life cycle perspective (LCA) and taking into account the company value chain, processes can be divided into three fundamental phases: upstream, core and downstream.
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