Glossary
- Acid rain: Rain with a high concentration of acidic compounds, such as sulfuric and nitric acid, caused by pollution from human activities.
- Agroforestry: The integration of trees and shrubs with crops and/or livestock to create a more diverse and sustainable farming system.
- Best available technology: The most effective and environmentally responsible technology or practices currently available for managing environmental risks.
- Biodiversity: The variety of life on Earth, including the number of species, genetic diversity, and ecosystem diversity.
- Biological diversity: The variety of living organisms in a given ecosystem, including plants, animals, and microorganisms.
- Blue bond: A bond specifically issued to finance projects related to sustainable ocean management and conservation.
- Brownfield development: The redevelopment of abandoned or underutilized industrial sites, often with the goal of addressing environmental risks and promoting sustainable land use.
- Carbon credits: Units of carbon dioxide (or equivalent greenhouse gas emissions) that are traded on carbon markets.
- Carbon farming: Farming practices that sequester carbon in soil, plants, and other biomass to mitigate climate change.
- Carbon footprint: The total amount of greenhouse gas emissions that are directly or indirectly produced by an individual, organization, or product.
- Carbon negative: Describes products, services, or activities that remove more greenhouse gas emissions than they produce, effectively reducing atmospheric carbon dioxide levels.
- Carbon neutral: Describes products, services, or activities that result in no net greenhouse gas emissions, typically achieved through carbon offsetting or emissions reduction measures.
- Carbon offset: A mechanism for mitigating carbon emissions by supporting projects that reduce or remove carbon dioxide from the atmosphere, such as reforestation or renewable energy projects.
- Carbon offsetting: The practice of buying carbon credits to offset emissions from a particular activity or organization.
- Carbon pricing: A policy mechanism that places a monetary value on carbon emissions, typically through a carbon tax or cap-and-trade system.
- Carbon sequestration: The process of capturing and storing carbon dioxide from the atmosphere to mitigate climate change, typically through reforestation or the use of carbon capture and storage technology.
- Carbon sink: A natural or human-made system that absorbs more carbon dioxide than it emits, such as forests, wetlands, or soil.
- Climate adaptation: The process of adjusting to the impacts of climate change, such as rising sea levels, increased frequency of extreme weather events, and changes in precipitation patterns.
- Climate bonds: Bonds that are specifically issued to finance projects that address climate change.
- Climate finance: Financial support for projects and initiatives aimed at addressing climate change.
- Climate mitigation: The process of reducing greenhouse gas emissions to slow the pace and severity of climate change, typically through measures such as renewable energy, energy efficiency, and carbon pricing.
- Climate risk management: The process of identifying and addressing the risks associated with climate change, such as sea level rise and extreme weather events.
- Compliance monitoring: The process of monitoring environmental activities to ensure that they comply with environmental regulations and standards.
- Conservation tillage: Farming practices that minimize soil disturbance and erosion, such as no-till or reduced tillage.
- Contingency planning: The process of developing a plan to respond to environmental risks and emergencies.
- Corporate social responsibility (CSR): A company’s voluntary efforts to minimize its negative environmental and social impact.
- Cover crop: A crop grown specifically to protect and improve soil health, typically planted in between cash crops.
- Crop rotation: The practice of rotating crops on a given plot of land to maintain soil health, manage pests and disease, and improve yields.
- Desertification: The process by which fertile land becomes desert due to climate change, overgrazing, deforestation, and other factors.
- Disclosure requirements: Regulations that require companies to disclose information about their environmental and social impact, as well as their risk management practices.
- Divestment: The practice of selling investments in companies or industries that are deemed to be environmentally or socially harmful.
- Ecosystem services: The benefits that humans derive from ecosystems, such as water filtration, pollination, and carbon sequestration.
- Embodied carbon: The amount of carbon emissions associated with the production, transportation, and disposal of a product or material.
- Emergency response: The immediate actions taken to address an environmental risk or emergency, such as a spill or natural disaster.
- Emissions intensity: The amount of greenhouse gas emissions per unit of economic activity, typically measured as the amount of emissions per dollar of GDP.
- Emissions trading: The exchange of permits to emit pollutants, such as carbon dioxide, between businesses and governments, as a means of incentivizing emissions reductions.
- Energy efficiency financing: Financing for projects aimed at improving energy efficiency, such as retrofitting buildings or upgrading energy systems.
- Energy efficiency: The practice of using less energy to achieve the same level of output, typically achieved through technological improvements and behavior changes.
- Environmental auditing: The process of evaluating an organization’s environmental performance and compliance with environmental regulations and standards.
- Environmental due diligence: The process of evaluating the potential environmental risks associated with a business transaction, such as a merger or acquisition.
- Environmental finance: Financial support for projects and initiatives aimed at promoting environmental sustainability.
- Environmental impact assessment: The process of evaluating the potential environmental impacts of a proposed development or activity.
- Environmental insurance: Insurance coverage that protects businesses and individuals from financial losses associated with environmental hazards and liabilities.
- Environmental justice: The fair treatment and involvement of all people, regardless of race, ethnicity, or socioeconomic status, in environmental decision-making and policies.
- Environmental justice: The principle that all individuals and communities, regardless of race or socioeconomic status, have the right to a healthy and safe environment.
- Environmental management system: A formal framework for managing environmental risks and ensuring compliance with environmental regulations and standards.
- Environmental remediation: The process of restoring contaminated land or water to its original condition.
- Environmental risk analysis: The process of evaluating the potential environmental risks associated with a particular investment or project.
- Environmental, social, and governance (ESG) criteria: Criteria used by investors to evaluate the sustainability and ethical impact of potential investments.
- Food miles: The distance that food travels from its point of origin to the consumer, including transportation and other related emissions.
- Fossil fuels: Non-renewable energy sources, such as coal, oil, and natural gas, that are formed from the remains of ancient plants and animals.
- Green bond market: The market for buying and selling green bonds.
- Green bonds principles: Guidelines for issuing green bonds developed by the International Capital Markets Association.
- Green bonds: Debt securities that are specifically issued to finance environmentally friendly projects.
- Green financing: The practice of using financial instruments to support sustainable and environmentally friendly projects.
- Green investment: Investment in environmentally friendly projects or companies.
- Green leasing: Leasing agreements that incorporate environmental considerations, such as energy efficiency and waste reduction.
- Green loan principles: Guidelines for issuing green loans developed by the Loan Market Association.
- Green loans: Loans that are specifically issued to finance environmentally friendly projects.
- Green mortgages: Mortgages that provide incentives for energy-efficient home improvements or the purchase of energy-efficient homes.
- Green procurement: The process of selecting products and services based on their environmental performance, such as energy efficiency and sustainable materials.
- Green securitization: The process of packaging and selling green loans or bonds as securities to investors.
- Greenhouse gases: Gases that trap heat in the Earth’s atmosphere and contribute to the greenhouse effect, including carbon dioxide, methane, and nitrous oxide.
- Greenwashing: The practice of making false or exaggerated claims about the environmental benefits of a product or service.
- Habitat fragmentation: The division of large habitats into smaller, isolated fragments, typically caused by human activities such as urbanization, agriculture, and logging.
- Hazard identification: The process of identifying potential sources of environmental risk, such as pollutants or hazardous materials.
- Hazardous waste management: The process of handling, storing, and disposing of hazardous waste materials in a safe and environmentally responsible manner.
- Holistic management: A planning and decision-making framework for land management that emphasizes the interconnectedness of ecological, economic, and social factors.
- Impact investing: Investing with the goal of generating positive social and environmental impact, in addition to financial returns.
- Industrial ecology: The study of the interactions between industrial systems and the natural environment, with the goal of minimizing waste and promoting sustainability.
- Intercropping: The practice of growing two or more crops together in the same field to maximize yield and ecological benefits.
- Keyline design: A land management system that uses topography to optimize water retention and distribution.
- LCA (life cycle assessment): A methodology used to evaluate the environmental impact of a product or service throughout its entire life cycle, from raw material extraction to disposal.
- Life cycle assessment (LCA): A methodology used to evaluate the environmental impact of a product or service throughout its entire life cycle, from raw material extraction to disposal, including the carbon footprint.
- Living mulch: A cover crop that is allowed to grow between rows of cash crops to provide soil cover and nutrient cycling.
- Low-carbon: Describes products, services, or activities that emit relatively low levels of greenhouse gas emissions compared to their alternatives.
- Materiality assessment: The process of determining which environmental, social, and governance (ESG) issues are most important to a particular business or industry.
- Microplastics: Small plastic particles, less than 5 millimeters in size, that are found in the environment and have potential negative impacts on wildlife and human health.
- Mitigation: The process of reducing greenhouse gas emissions to slow the pace and severity of climate change, typically through measures such as renewable energy, energy efficiency, and carbon pricing.
- Mob grazing: A rotational grazing system that moves livestock frequently to maximize forage utilization and promote soil health.
- Natural capital accounting: The process of quantifying the value of natural resources and ecosystem services,
- Natural pest management: The use of ecological processes and natural predators to manage pests and disease, rather than relying on chemical pesticides.
- Net-zero emissions: The balance between the amount of greenhouse gas emissions produced and the amount removed
- Ocean acidification: The ongoing decrease in the pH of the Earth’s oceans, caused by the absorption of carbon dioxide from the atmosphere.
- Overfishing: The practice of catching fish faster than they can reproduce, leading to a decline in fish populations and potential impacts on marine ecosystems.
- Ozone depletion: The thinning of the ozone layer in the Earth’s atmosphere, caused by the release of ozone-depleting substances, primarily chlorofluorocarbons (CFCs).
- Perennial agriculture: The cultivation of crops that live for multiple years, such as fruit trees and perennial grasses, to reduce soil erosion and increase carbon sequestration.
- Pollinator decline: The decrease in populations of bees, butterflies, and other pollinators, potentially due to habitat loss, pesticides, and other factors.
- Pollutant prevention: The process of implementing measures to prevent or minimize the release of pollutants into the environment.
- Polyculture: The practice of growing multiple crops in the same field, often in a diverse and complementary mix.
- Precautionary principle: The principle that in the face of uncertainty, action should be taken to prevent potential harm to human health or the environment.
- Project finance: A financing method that involves the creation of a special purpose vehicle (SPV) to finance and manage a specific project.
- Regenerative agriculture: Farming practices that prioritize soil health, biodiversity, and ecosystem function, with the goal of producing healthy food and improving the environment.
- Renewable energy financing: Financing for projects aimed at developing and expanding renewable energy sources, such as solar and wind power.
- Renewable energy: Energy generated from natural sources that are replenished over time, such as solar, wind, and hydropower.
- Resilience: The ability of a system or community to adapt and recover from environmental risks and disruptions.
- Resource depletion: The exhaustion of natural resources, such as fossil fuels, minerals, and forests, due to human activities.
- Riparian buffer: An area of vegetation along a stream or river, designed to protect water quality and enhance biodiversity.
- Risk assessment: The process of identifying and evaluating the potential risks associated with a particular environmental hazard or activity.
- Risk communication: The process of sharing information about environmental risks with stakeholders, including the public, policymakers, and industry
- representatives.
- Risk management: The process of implementing strategies to mitigate or reduce the risks identified through risk assessment.
- Risk mitigation: The process of implementing measures to reduce or eliminate the potential risks associated with a particular environmental hazard or activity.
- Risk tolerance: The level of acceptable risk associated with a particular environmental hazard or activity, often based on factors such as public health and safety.
- Risk transfer: The process of transferring the financial risk associated with environmental hazards to another party, such as an insurance company.
- Rotational grazing: The practice of moving livestock between different pastures or paddocks to optimize forage utilization and promote soil health.
- Scope 1 emissions: Direct greenhouse gas emissions from sources that are owned or controlled by the entity, such as emissions from fuel combustion in buildings or vehicles.
- Scope 2 emissions: Indirect greenhouse gas emissions from the generation of purchased electricity, heat, or steam.
- Scope 3 emissions: Indirect greenhouse gas emissions from sources outside of the organization’s control, such as emissions from the production of purchased goods or services.
- Silvopasture: The integration of trees and livestock to create a more diverse and sustainable farming system.
- Social agroecology: A framework for regenerative agriculture that prioritizes social justice, equity, and community empowerment.
- Social impact bond: A bond that provides funding for social programs and initiatives, with returns tied to the achievement of specific social outcomes.
- Soil carbon: The amount of carbon stored in soil, typically measured in terms of organic matter content.
- Soil health: The physical, chemical, and biological properties of soil, including its ability to support plant growth, nutrient cycling, and carbon sequestration.
- Stakeholder engagement: The process of involving stakeholders, including the public and affected communities, in decision-making related to environmental risks.
- Sustainability reporting: The process of reporting on an organization’s environmental performance and sustainability efforts to stakeholders.
- Sustainability: The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs, including economic, environmental, and social considerations.
- Sustainability-linked bonds: Bonds that are tied to sustainability performance targets, such as reducing greenhouse gas emissions or improving water efficiency.
- Sustainable development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, while balancing economic, environmental, and social considerations.
- Sustainable transportation: Transportation systems and practices that minimize greenhouse gas emissions and other environmental impacts, such as public transportation, electric vehicles, and active transportation modes like walking and biking.
- Synergistic farming: A farming system that emphasizes the interdependence of different elements within an ecosystem, such as crops, livestock, and soil organisms.
- Tax incentives: Government incentives, such as tax credits or deductions, aimed at promoting investment in environmentally friendly projects or industries.
- Terrestrial carbon sink: A natural or human-made system, such as forests or agricultural
- Triple bottom line: A framework that considers the economic, environmental, and social impacts of an organization’s activities, products, and services.
- Upcycling: The process of converting waste materials into new products of higher value or quality, typically with lower greenhouse gas emissions than traditional manufacturing processes.
- Water footprint: The amount of fresh water used by an individual, organization, or product, including both direct and indirect use, as well as the associated greenhouse gas emissions.
- Water harvesting: The capture and storage of rainwater for agricultural use, typically through techniques such as contour plowing or rain gardens.
- Wildlife habitat restoration: The creation or restoration of habitat for native species, such as planting hedgerows or creating nesting sites for birds.
- Zero-input farming: A farming system that relies solely on natural inputs, such as sunlight and rainwater, without the use of synthetic fertilizers or pesticides.