Sustainable Business Glossary

A company certified by B Lab as meeting rigorous standards of social and environmental performance, accountability, and transparency.

The total greenhouse gas emissions caused by an organization, product, or individual, expressed in CO2 equivalents.

Achieving net-zero carbon emissions by balancing emitted CO2 with offsets, renewables, and efficiency gains.

An economic system that eliminates waste through continuous cycles of reuse, repair, remanufacturing, and recycling.

A self-regulating business model integrating social and environmental concerns into operations and stakeholder interactions.

Environmental, Social, and Governance criteria used to evaluate corporate sustainability and ethical performance.

The most widely used international standard for sustainability reporting and disclosure.

Fixed-income instruments whose proceeds fund projects with environmental benefits.

Making misleading claims about the environmental benefits of a product, service, or corporate practice.

Investments intended to generate measurable positive social and environmental impact alongside financial returns.

A framework communicating how an organization creates value over time across financial, social, and environmental capitals.

A methodology evaluating the environmental impact of a product from raw material extraction through end of life.

A process identifying which ESG issues are most relevant to a company and its stakeholders.

A state where total greenhouse gas emissions are balanced by equivalent removals from the atmosphere.

Procurement practices ensuring materials are obtained ethically and sustainably across the supply chain.

Emission reduction goals aligned with the Paris Agreement to limit warming to 1.5 degrees Celsius.

Direct greenhouse gas emissions from company-owned and controlled sources.

Indirect emissions from the generation of purchased electricity, steam, heating, and cooling.

All other indirect emissions across the value chain, including suppliers, customers, and logistics.

Creating economic value in ways that simultaneously address societal needs and challenges.

A business that prioritizes social or environmental objectives, reinvesting profits to further its mission.

The philosophy that corporations should serve all stakeholders, not just shareholders.

Assets that lose value prematurely due to environmental regulation, market shifts, or technological disruption.

Managing environmental and social impacts across the entire value chain from extraction to disposal.

A framework measuring corporate success by profit, people, and planet rather than financial performance alone.