1. What are Scope 1, 2, and 3 emissions?
Scope 1 emissions are direct greenhouse gas emissions from sources owned
or controlled by the company. Scope 2 emissions are indirect emissions from
purchased electricity, heat, or steam. Scope 3 emissions are all other indirect
emissions in the value chain, including upstream and downstream activities.
2. What is carbon neutrality?
Carbon neutrality means achieving net-zero carbon emissions by balancing
carbon emissions with carbon removal or purchasing carbon offsets. This
typically involves reducing emissions as much as possible and offsetting
remaining emissions through verified projects.
3. How does a company calculate its carbon footprint?
Companies calculate carbon footprints by measuring emissions from all
activities, multiplying activity data by emission factors, and aggregating
across Scopes 1, 2, and 3. Common methodologies include the GHG
Protocol and ISO 14064 standards.
4. What is the Science Based Targets initiative (SBTi)?
SBTi is a collaboration between CDP, UN Global Compact, WRI, and
WWF that helps companies set emission reduction targets aligned with
climate science and Paris Agreement goals. Targets must limit warming to
well below 2°C or 1.5°C above pre-industrial levels.
, 5. What are carbon offsets?
Carbon offsets are credits from projects that reduce, remove, or avoid
greenhouse gas emissions. One offset typically equals one metric ton of CO2
avoided or removed. Projects include reforestation, renewable energy,
methane capture, and carbon sequestration.
6. What is the difference between carbon neutral and net zero?
Carbon neutral refers to balancing CO2 emissions only, often through
offsets. Net zero is more comprehensive, covering all greenhouse gases with
deep emission reductions (typically 90-95%) before offsetting residual
emissions. Net zero represents a higher standard.
7. What is climate risk disclosure?
Climate risk disclosure involves reporting potential financial impacts from
climate change, including physical risks like extreme weather and transition
risks from policy changes. The TCFD framework guides companies to
disclose governance, strategy, risk management, and metrics.
8. What are renewable energy certificates (RECs)?
RECs represent proof that one megawatt-hour of electricity was generated
from renewable sources. Companies purchase RECs to support renewable
energy development and claim green power use, separate from the physical
electricity they consume.
9. What is a carbon price?
Carbon pricing puts a monetary value on greenhouse gas emissions through
carbon taxes or cap-and-trade systems. Internal carbon pricing helps
companies account for climate risks in decision-making and investment
planning.
10.What is the Task Force on Climate-related Financial Disclosures
(TCFD)?
TCFD is a framework developed by the Financial Stability Board to help
companies disclose climate-related financial risks and opportunities. It
focuses on four pillars: governance, strategy, risk management, and metrics
and targets.
Energy & Resource Efficiency
,11.What is energy intensity?
Energy intensity measures energy consumption per unit of output, such as
revenue or production volume. Lower intensity indicates greater efficiency.
It allows comparison across companies and tracks improvement over time.
12.What is circular economy?
Circular economy is an economic system that eliminates waste by keeping
products and materials in use through reuse, repair, refurbishment,
remanufacturing, and recycling. It contrasts with the traditional linear
economy of take-make-dispose.
13.What are green buildings?
Green buildings are designed, constructed, and operated to reduce
environmental impact and enhance occupant health. Certifications like
LEED, BREEAM, and WELL evaluate energy efficiency, water
conservation, materials selection, and indoor environmental quality.
14.What is water stress?
Water stress occurs when water demand exceeds available supply or when
poor quality restricts use. Companies assess water stress risk in operations
and supply chains using tools like WRI's Aqueduct to identify high-risk
locations.
15.What is life cycle assessment (LCA)?
LCA evaluates environmental impacts of a product or service throughout its
entire life cycle from raw material extraction through manufacturing, use,
and disposal. It identifies hotspots and opportunities for impact reduction.
16.What is renewable energy procurement?
Renewable energy procurement involves purchasing electricity from
renewable sources through power purchase agreements, on-site generation,
green tariffs, or renewable energy certificates. This reduces Scope 2
emissions and supports clean energy development.
17.What is waste diversion rate?
Waste diversion rate measures the percentage of waste redirected from
landfills through recycling, composting, or energy recovery. Higher rates
indicate better waste management and resource efficiency.
, 18.What is product stewardship?
Product stewardship is the practice of minimizing environmental impacts
throughout a product's life cycle. It includes eco-design, extended producer
responsibility, take-back programs, and designing for recyclability or
biodegradability.
19.What are sustainable materials?
Sustainable materials are sourced, produced, and used in ways that minimize
environmental harm. Characteristics include renewable sourcing, recycled
content, low toxicity, durability, recyclability, and responsible supply chains.
20.What is energy efficiency?
Energy efficiency means using less energy to provide the same service or
output. Improvements include upgrading equipment, optimizing processes,
improving building insulation, and implementing energy management
systems like ISO 50001.
Biodiversity & Ecosystems
21.What is biodiversity?
Biodiversity encompasses all living organisms and ecosystems on Earth.
Business impacts include habitat loss, pollution, invasive species, and
overexploitation. Companies assess and mitigate impacts through
biodiversity action plans and ecosystem restoration.
22.What are ecosystem services?
Ecosystem services are benefits humans receive from nature, including
provisioning services like food and water, regulating services like climate
regulation, supporting services like nutrient cycling, and cultural services
like recreation.
23.What is deforestation-free sourcing?
Deforestation-free sourcing commits to commodities not produced on land
deforested after a cutoff date. Companies implement traceability,
certification, and supplier engagement to eliminate deforestation from
supply chains for commodities like palm oil, soy, and beef.
24.What is the Taskforce on Nature-related Financial Disclosures (TNFD)?
Scope 1 emissions are direct greenhouse gas emissions from sources owned
or controlled by the company. Scope 2 emissions are indirect emissions from
purchased electricity, heat, or steam. Scope 3 emissions are all other indirect
emissions in the value chain, including upstream and downstream activities.
2. What is carbon neutrality?
Carbon neutrality means achieving net-zero carbon emissions by balancing
carbon emissions with carbon removal or purchasing carbon offsets. This
typically involves reducing emissions as much as possible and offsetting
remaining emissions through verified projects.
3. How does a company calculate its carbon footprint?
Companies calculate carbon footprints by measuring emissions from all
activities, multiplying activity data by emission factors, and aggregating
across Scopes 1, 2, and 3. Common methodologies include the GHG
Protocol and ISO 14064 standards.
4. What is the Science Based Targets initiative (SBTi)?
SBTi is a collaboration between CDP, UN Global Compact, WRI, and
WWF that helps companies set emission reduction targets aligned with
climate science and Paris Agreement goals. Targets must limit warming to
well below 2°C or 1.5°C above pre-industrial levels.
, 5. What are carbon offsets?
Carbon offsets are credits from projects that reduce, remove, or avoid
greenhouse gas emissions. One offset typically equals one metric ton of CO2
avoided or removed. Projects include reforestation, renewable energy,
methane capture, and carbon sequestration.
6. What is the difference between carbon neutral and net zero?
Carbon neutral refers to balancing CO2 emissions only, often through
offsets. Net zero is more comprehensive, covering all greenhouse gases with
deep emission reductions (typically 90-95%) before offsetting residual
emissions. Net zero represents a higher standard.
7. What is climate risk disclosure?
Climate risk disclosure involves reporting potential financial impacts from
climate change, including physical risks like extreme weather and transition
risks from policy changes. The TCFD framework guides companies to
disclose governance, strategy, risk management, and metrics.
8. What are renewable energy certificates (RECs)?
RECs represent proof that one megawatt-hour of electricity was generated
from renewable sources. Companies purchase RECs to support renewable
energy development and claim green power use, separate from the physical
electricity they consume.
9. What is a carbon price?
Carbon pricing puts a monetary value on greenhouse gas emissions through
carbon taxes or cap-and-trade systems. Internal carbon pricing helps
companies account for climate risks in decision-making and investment
planning.
10.What is the Task Force on Climate-related Financial Disclosures
(TCFD)?
TCFD is a framework developed by the Financial Stability Board to help
companies disclose climate-related financial risks and opportunities. It
focuses on four pillars: governance, strategy, risk management, and metrics
and targets.
Energy & Resource Efficiency
,11.What is energy intensity?
Energy intensity measures energy consumption per unit of output, such as
revenue or production volume. Lower intensity indicates greater efficiency.
It allows comparison across companies and tracks improvement over time.
12.What is circular economy?
Circular economy is an economic system that eliminates waste by keeping
products and materials in use through reuse, repair, refurbishment,
remanufacturing, and recycling. It contrasts with the traditional linear
economy of take-make-dispose.
13.What are green buildings?
Green buildings are designed, constructed, and operated to reduce
environmental impact and enhance occupant health. Certifications like
LEED, BREEAM, and WELL evaluate energy efficiency, water
conservation, materials selection, and indoor environmental quality.
14.What is water stress?
Water stress occurs when water demand exceeds available supply or when
poor quality restricts use. Companies assess water stress risk in operations
and supply chains using tools like WRI's Aqueduct to identify high-risk
locations.
15.What is life cycle assessment (LCA)?
LCA evaluates environmental impacts of a product or service throughout its
entire life cycle from raw material extraction through manufacturing, use,
and disposal. It identifies hotspots and opportunities for impact reduction.
16.What is renewable energy procurement?
Renewable energy procurement involves purchasing electricity from
renewable sources through power purchase agreements, on-site generation,
green tariffs, or renewable energy certificates. This reduces Scope 2
emissions and supports clean energy development.
17.What is waste diversion rate?
Waste diversion rate measures the percentage of waste redirected from
landfills through recycling, composting, or energy recovery. Higher rates
indicate better waste management and resource efficiency.
, 18.What is product stewardship?
Product stewardship is the practice of minimizing environmental impacts
throughout a product's life cycle. It includes eco-design, extended producer
responsibility, take-back programs, and designing for recyclability or
biodegradability.
19.What are sustainable materials?
Sustainable materials are sourced, produced, and used in ways that minimize
environmental harm. Characteristics include renewable sourcing, recycled
content, low toxicity, durability, recyclability, and responsible supply chains.
20.What is energy efficiency?
Energy efficiency means using less energy to provide the same service or
output. Improvements include upgrading equipment, optimizing processes,
improving building insulation, and implementing energy management
systems like ISO 50001.
Biodiversity & Ecosystems
21.What is biodiversity?
Biodiversity encompasses all living organisms and ecosystems on Earth.
Business impacts include habitat loss, pollution, invasive species, and
overexploitation. Companies assess and mitigate impacts through
biodiversity action plans and ecosystem restoration.
22.What are ecosystem services?
Ecosystem services are benefits humans receive from nature, including
provisioning services like food and water, regulating services like climate
regulation, supporting services like nutrient cycling, and cultural services
like recreation.
23.What is deforestation-free sourcing?
Deforestation-free sourcing commits to commodities not produced on land
deforested after a cutoff date. Companies implement traceability,
certification, and supplier engagement to eliminate deforestation from
supply chains for commodities like palm oil, soy, and beef.
24.What is the Taskforce on Nature-related Financial Disclosures (TNFD)?
